Skype

3UK says data exceeds 90% of network traffic

Paul Rasmussen — Fri, 30 Oct 2009 14:29:58 -0400

Having been forced to adopt an innovative approach to the mobile market by its lack of size, the CEO of 3UK, Kevin Russell, claims that data now accounted for 94 per cent of all traffic across its network, compared with three or four years ago when it was around 15-20 per cent.

Being the No. 5 operator in the UK, 3 has taken a radically different route to gaining subscribers by actively promoting data services, such as mobile VoIP, that have been shunned or blocked by the other much larger incumbents. According to Russell, the rapid increase in data traffic has been due to the growth in internet services such as Skype and MSN. "For example, the number of Skype minutes being used has increased by 6,600 per cent since 2006, from 90,000 to 600 million minutes."

Despite the upheavals that have already occurred within the industry, Russell believes that there will be ‘more changes in the next five years than we have seen in the previous 15'. "There will be a tsunami like wave of change coming, which the whole industry will have to adapt to."

For more on this story:
Mobile Today

O2 Germany opens network to VoIP

Paul Rasmussen — Wed, 19 Aug 2009 13:18:28 -0400

Bowing to the inevitable, O2 Germany has become the first major cellular operator in the country allowing mobile VoIP applications on handsets without charging a premium. Until now, all four of Germany's major mobile providers have attempted to block VoIP applications, such as Skype, claiming the additional IP data traffic would overload their 3G networks and cause disruptions to other users. Other operators called for a ban on certain Nokia handsets that would come with the Skype application preloaded.

Earlier this year, T-Mobile Germany imposed a ban on mobile VoIP applications using its 3G or Wi-Fi networks. However, in June it lifted the VoIP block but instead introduced a surcharge of €9.95 per month for anyone wanting to use VoIP services.

However, O2 Germany has now decided to allow VoIP usage with its monthly data traffic tariffs, with the minimum being €10 per month for 200MB of data transfer. This, according to engineers, is sufficient for users to make two hours of Skype calls per month.

O2 Germany's Lutz Schüler said that the company now had one of the fastest and most modern mobile data networks in Europe and "our customers should be able to experience that without restrictions. By opening our mobile highspeed network for VoIP services, we are setting new benchmarks for the mobile Internet."

For more on this story:
The Local - Germany

INQ plans more handsets, and looks beyond 3UK

Paul Rasmussen — Wed, 10 Jun 2009 14:47:35 -0400

Following the success of its Skype handset, INQ has announced it plans to release three new phones in 2009 and is in talks with several operators on distributing its social mobile handsets by 2010. The company maintains its sub-£150 handsets have proven their ability to boost data revenues among younger Facebook users.

According to INQ's CEO, Frank Meehan, the company is already negotiating with other UK operators and by 2010 plans to sell phones on operators other than 3UK--albeit that INQ is owned by 3's parent company, Hutchison Whampoa. Meehan claims Windows Live Messenger usage is around four times greater than on other 3G phones on the 3UK network, with around 50 per cent of INQ1 customers accessing the service every month. Skype is used by 19 per cent of the INQ1 base.

The company said it also plans to broaden its handset range in 2010 and intends to expand into Asia, the Middle East and Latin America. Meehan added: "We are doing well--the Skype phones and INQ device have sold 700,000 so far. The next Skype phone will do well based on that."

For more on this story:
Mobile Today

T-Mobile lifts Skype ban, but imposes surcharge

Paul Rasmussen — Wed, 03 Jun 2009 12:11:51 -0400

Having attracted widespread criticism T-Mobile Germany has ended its ban on the use of Skype and other mobile VoIP services over its mobile network. However, the company has imposed a surcharge of €9.95 a month on its subscribers wanting to use these VoIP applications.

The company has justified this new tariff due to the significant investment required to boost network capacity together with the increase in the number of available IP addressees needed to offer its customers the option to use VoIP within its mobile network in Germany. However, a T-Mobile spokesman declined to elaborate further on the details of this necessary investment.

In April, a Skype application was made available in Apple's app store and was downloaded more than 600,000 times by iPhone users globally within the first 24 hours following its launch, according to Skype. T-Mobile sold more than 330,000 iPhones in Germany as of the end of 2008, and a large number of Google G1 and smartphones running Windows Mobile--all of which can support the Skype application.

Separately, 3UK said that, following a high-profile TV advertising campaign offering free Skype-to-Skype calling for new and existing 3 prepay customers, it had recorded a huge increase in the usage of the service. 3UK's sales and marketing director, Marc Allera, said, "It's very early days, but we are very pleased so far. All new campaigns take time to get going, but we have seen some really pleasing results come through in terms of sales and usage."

For more on this story:
WSJ and Mobile News

German operators split over mobile VoIP strategy

Paul Rasmussen — Wed, 13 May 2009 13:15:33 -0400

Having encountered political opposition to their stance on allowing mobile VoIP calls across their network, T-Mobile Deutschland and Vodafone Deutschland have backed away from their statements that they would not sell Nokia handsets with integrated Skype software. Both operators have confirmed they are investigating the possibilities of offering special tariffs for mobile VoIP use instead of blocking the service. T-Mobile Deutschland had defended its hard-line position last month by claiming mobile VoIP overloaded its network and it didn't want to be responsible for the QoS aspects of Skype.

While these two operators change their approach to mobile VoIP, their two rivals--E-Plus and O2 Germany--have admitted they had no active plans to launch special tariffs for these IP-based voice services. E-Plus spokesman, Klaus Schulze-Loewenberg, said the operator has no plans for such special tariffs or for changing its general conditions that currently prohibited the use of mobile VoIP services. O2 Germany spokesman, Harald Maass, said although no plans exist, the operator is looking into a possible change in strategy.

For more on this story:
Trading Markets and Telegeography

3UK drives towards breakeven, but future in question

Paul Rasmussen — Wed, 15 Apr 2009 13:13:37 -0400

The ongoing losses reported by the UK's smallest operator, 3, have dramatically reduced to just over £150 million. While this number would normally cause an outcry from business analysts, compared to previous years' losses of £791 million and £1.4 billion five years ago it is a significant move forward, even more so given that revenues increased by 18 per cent to £1.5 billion.

However, this relative improvement in 3UK's financial performance has triggered speculation over its future. Its parent company, Hutchison Whampoa, is thought to be preparing to cut its ties with 3G mobile by selling or merging its 3 businesses. These rumours have been given fresh impetus following the recent announcement of a deal in Australia where the group has merged with the domestic operations of Vodafone and ditched its "3" branding.

However, 3UK is currently outpacing its rivals and, according to industry watchers, is growing at 11 per cent in a market that is now increasing at only 2-3 per cent. Its close relationship with Skype has caused some controversy--but has attracted the techno-savvy, and the company is the market leader for the sale of 3G data cards.

For more on this story:
Mobile Choice and The Times

O2 and Orange resist Nokia Skype phone

Paul Rasmussen — Wed, 25 Feb 2009 13:17:42 -0500

Nokia's plans to integrate Skype functionality into its future Nseries handsets are said to have irritated O2 and Orange to such an extent that the companies might refuse to offer the device when it becomes available this summer. The operators are thought to be increasingly annoyed by Nokia's continued efforts to undermine their revenue streams--this time using Sykpe to provide low-cost mobile calls, and not helped by the recent announcement at MWC of Nokia's apps store service, labelled Ovi Store.

However, Nokia's Skype plans seem to have split the operator base with T-Mobile and 3 supporting the mobile VoIP business model (albeit with initial reluctance by T-Mobile), perhaps helped by the 3G infrastructure agreement struck between the two firms that will save them €2.2 billion ins costs over the next 10 years.

For more on this story:
Mobile Choice

Back to basics for 3UK--focus now on email, VoIP and IM

Thu, 10 Apr 2008 06:59:58 -0400

Having been a pioneer of new mobile services, the CEO of 3UK, Kevin Russell, has reset the company's business objectives by stating there will be less emphasis on developing mobile content, and a greater focus on promoting mobile email, VoIP and IM services.

While admitting that mobile broadband has a very important role to play and presents a huge opportunity for mobile operators, Russell maintains that he does not support the view held by many in the mobile industry that mobile broadband will overtake fixed services. "I don't believe mobile broadband is as good as fixed, and I'm not going to bang a drum and say mobile will replace fixed."

However, the company admitted that data throughput on its network increased sevenfold from October '07 to February '08, and mobile broadband would be a focus area. "But there are some bandwagons 3 is not big enough to jump on", Russell added. "We need to be a more focused company and not get distracted by services such as mobile TV." He also noted that the company would continue to follow an own-brand handsets strategy, as this enabled it to offer more disruptive services such as Skype.

For more on this story:
- read ZDnet UK

3 continues to expand Mobile Skype coverage

Thu, 20 Dec 2007 04:00:00 -0500

While Skype may have lost some of its early luster--especially for eBay shareholders, the mobile operator 3 continues to push forward with the concept by launching the Mobile VoIP service in Sweden, Denmark and Austria. The company is now providing the service in eight countries in total.

3 said that the mobile VoIP handset was a full-featured device that enabled subscribers to make free Internet calls using the Skype application, as well as making conventional calls and being able to access 3's existing range of Internet services. The company said that the most popular call destination for U.K. mobile Skype users was Europe followed by the U.S., with the top destinations being Poland, Germany and France.

Kevin Russell, CEO 3 U.K., commented, "Our customers are now able to enjoy the same Skype experience at home as on the move. The rollout across our international business underlines our commitment to offer innovative services that challenge the status quo."

For more on this story:
- read PocketLint, 3G.UK and MobileEurope

3 launches flat-rate mobile Skype, Sling, Orb

Wed, 31 Oct 2007 07:59:58 -0400

Today is a watershed moment for the 3G market. U.K. carrier 3 launched a flat-rate wireless data package that includes services from Skype, eBay, Yahoo, Google, Orb, Sling Media, Nokia, Microsoft and Sony Ericsson. Subscribers to the "X-Series" services will be able to make unlimited calls from their mobile using Skype, watch their home television via their mobile using Sling (if they also buy a SlingBox), access their home PC remotely using Orb and use IM services from Yahoo!, Windows Live Messenger and Google. The offering also marks the first mobile carrier deal for Sling Media. Sony Ericsson's W950i (photo) and Nokia's N73 (photo) are the X-Series handsets. The service drops in the U.K. starting next month, and in 3's other markets sometime next year. No word on the "flat-rate" price yet.

Ovum analyst John Delaney says that everything a traditional carrier fears is included in this package: wireless VoIP, flat-rate data tariffs, IM (as opposed to SMS) and place-shifted TV. Of course, free Skype calls only apply for PCs or other Skype phones. 3's in the position to take these risks, it's not an incumbent with traditional fears, but as noted above, the price will be key, as always.

For all the details on 3's X-Series launch:
- see this press release