Impact of SF wifi + Skype on mobile carriers

Posted on Tuesday 4 October 2005

In the news this week San Francisco will build out a high speed city wide wi-fi network, whether donated for free by google, or built by someone else. You’ll have bits anywhere, maybe 1 mb symmetric.

Skype is embedding its (and Global IP Sound’s) technology in hardware devices. If you have wifi, you’ll be able to call your Skype buddy list for free, and anyone else for less than 2 cents per minute.

This is a case of:

1 + 1 = 0 …

that is … zero revenues for mobile carriers in one of the US’s major urban markets. Why would I pay for a $100 monthly plan to Verizon, Cingular or whomever, when I can make my calls for free.

Now, we’ve been seeing this coming for a long time, but each passing quarter another piece of the new world order drops into place. Maybe the MNOs have a counter plan, but I don’t see it. What will they do when this starts happening in other locations?

Oh wait, they’re going to lose Philly too.

The argument that internet connectivity and thus communications is a public good and therefore a utility is gaining ground.


5 Comments for 'Impact of SF wifi + Skype on mobile carriers'

  1.  
    October 4, 2005 | 11:28 pm
     

    While it is optional to opt-in to be listed in the FWD White pages,
    by being listed in the white pages your presence wil be noted whenever
    your FWD phone is available and on-line.

  2.  
    October 5, 2005 | 6:17 pm
     

    Counter strategies:

    - Regulate to favor incumbents. Death by a thousand delays, taxes, e911, etc.

    - QOS and other blocking by degrees. Force regulatory responses that take years and cost millions.

    - Sponsoring political candidates who defend incumbents and oppose candidates who favor muni-wifi.

  3.  
    morrisofva
    October 7, 2005 | 9:54 pm
     

    Where can I find help with Video using pulver.communicator. I got the authentication key, but still no video.

  4.  
    Tom
    October 13, 2005 | 10:14 am
     

    RE: The comment spam problem [posting here as comments are closed on that entry] - I also wonder when google / blogger are going to do something to cut down on the amount of comment spam there.

    I read faily blogs who post there and within minutes of a post there are 3 comments etc.. which are all automated junk :(

    Good luck with the new plugin!

    Tom

  5.  
    May 22, 2006 | 3:28 pm
     

    […] Yet, Skype seems to be accelerating this direction. Witness the recent move to offer free calling in North America (great link collection on this topic here). Witness the variety of Skype-enabled hardware coming. Combined with free urban wifi, these trends point to Skype being a free cellphone, not a Presence/IM/Voice platform. […]

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