Skype-Verizon Wireless Deal Is No Game Changer

Given the names involved, many observers unsurprisingly expected whatever deal Skype and Verizon Wireless planned to announce at the Mobile World Congress in Barcelona to produce a major breakthrough for mobile VoIP. But when the announcement came, it turned out to be less than overwhelming. It involved an application that will allow mobile users to make Skype calls over the Verizon Wireless network using smart phones. The deal does little to alter Verizon's traditional cellular model. It doesn't transport VoIP over the 3G data network, and it won't be a major money-saver for users. The main change it brings is making Skype somewhat more convenient and accessible for Verizon customers.

Will Skype Soon Be On Verizon Wireless?

Verizon Wireless was for a long time the most conservative U.S. carrier. It did everything it could to keep even mildly disruptive applications and services off of its network and handsets. In the last year, though, it has claimed to be changing, saying it planned to make its network as open as possible. In October it said it would introduce two handsets running the Google-developed Android operating system, and with Google Voice installed. It subsequently announced a deal with Google to jointly develop and sell products, including such Android-based devices. Now it appears set to announce a deal with Skype.

Why Video Conferencing Needs a Better Story

By now we know a lot of details about why HD voice calls are better than conventional phone calls. We've heard how the PSTN cuts off much of the audio range human conversation usually employs, making it hard to distinguish between fricatives such as s and f, and to understand people with different accents. We know that straining to fill in the words and phrases we can't understand produces listener fatigue and makes conference calls an ordeal.

All this information is evidence that the HD voice promoters have done a good job of getting the word out about their favored technology. But we don't have the same kind of information about why video calling is better than voice calling. The general assumption seems to be that everyone understands the benefit of video communication intuitively. In reality, understanding is limited, because detailed information is in short supply.

Heavy Reading Report Redefines VoIP Disruption

There has been a lot of confusion about the disruptive potential of VoIP innovation. Although announcements about supposedly disruptive new VoIP-based technologies or services occur regularly, somehow the dominant telecom carriers manage to remain dominant. In fact, their toughest competitors are other types of dominant carriers. At present, the three most powerful classes of competitors in telecommunications are landline, mobile and cable telephony providers, and all three employ conventional commercial and technical models. Although cable providers use VoIP, in every other way they are themselves traditional telcos.

Why 3G VoIP Is No Big Deal – For Now

When fring and iCall announced recently that they were introducing iPhone 3G VoIP calling apps, it seemed a turning point for mobile VoIP. The apps, which recent changes in the Apple SDK made possible, made it clear that there's no turning back: VoIP over cellular data connections will soon become commonplace. What was less obvious was that, at this point, 3G VoIP won't have major impact, at least in the U.S. That's because under existing major mobile pricing plans, it won't produce significant savings for most users.