Forget iOS. Forget Android. This Is Microsoft’s Market, Baby
profitbaron.com
profitbaron.com
It will be interesting to see what Microsoft does with Skype and the carriers, though. MS is not in a very strong position in the mobile phone market, and I can't imagine the carriers like Skype at all, as charging per minute and per text rather than by the MB for data is much more profitable. The neutered, 3G only version of Skype that came with ym Verizon phone, which counts US domestic calls against your normal calling plan, shows what Verizon thinks of Skype. That's "Skype Mobile", there's another Skype which works only on wifi. When you call Skype-to-Skype on "Skype Mobile", it dials a 1800 number in Atlanta, and the sound quality is terrible. On the same phone, the wifi Skype has markedly better sound quality. It seems to me that since I'm paying $25 a mo. for unlimited 3G data, I should be able to use the data to make Skype calls if I please. If Microsoft can make that happen, more power to them.
The only Skype-Skype I do is international, so that's why I hadn't considered that. Thankfully those are still data charges only.
Outside of a wifi area you would need to use some sort of network to transmit your data.. there really is no option other than a GSM/CDMA carrier.
Also, we have the problem of distribution now. Microsoft doesn't have the same retail presence that Apple has. Google proved that selling handsets direct to consumers doesn't work that well. Nokia closed down their stores in NYC, Chicago and London. Think of the retail stores that T-Mobile, AT&T, Verizon, Sprint etc have across the country... there is no way to compete with that.
The GSM protocol is design to handle voice data and is well optimized and uses surprisingly little bandwidth. Skype is much heavier on bandwidth in comparison. The skype protocol wasn't designed to be used as you walk through areas of low signal or for 1,000 users going through one cell phone tower at once. For simple voice data... the GSM protocol wins hands down.
If you want to imagine any Microsoft/Skype/Nokia/Windows 7 mash up.. what if they adapted the Skype p2p technology for use on handsets to allow you to connect through other handsets to get to a base station? This will allow you to route around network congestion, prevent dropped calls, reduce network infrastructure and increase network coverage.
Nokia makes the cell tower infrastructure through Nokia Siemens... If anyone could do this, it is Nokia. Imagine how hard carriers would push a p2p handset. </dream>
This is an extremely low-quality article. The author seems to not know what a "carrier" is in the mobile industry.
Also with regards to the Wifi issues obviously, the networks would have to be improved with regards to WIFI offered by companies and Microsoft would have to most likely invest into improving the network as well but, with billions lying around. It is worthwhile to go BIG on a market where it has huge potential than trying to milk its dying cash cows forever, until the company completely burns out.
And, maybe advertising revenue is not sufficient... yet. However, because ad revenue increases over time, and network cost decreases, it seems inevitable.
e.g. Google tried to do this with wifi in san fran (but IIRC had council problems). Google already has huge market share, so it's probably not crucial for them. But an up-and-coming search/advertiser with lots of money (like MS) is motivated and able.
The infrastructure is already there. I know it, because I use this fabled phone right now. When I'm on a Wifi network, my 3g is turned off. My texts stream in (and are synced with all my PCs) through Google Voice. My calls are connected to the SIP built into Gingerbread. My outgoing calls are registered with the GVoice web interface (via GVCallback) and are then connected to the SIP on my phone.
(also note, that all of this is done transparently. If you call or text the phone number that I give out to everyone, my phone operates the same regardless of if I'm on Wifi/3g/etc)
Meaning, when I have wifi, I can make and receive texts and calls without incurring data charges. I can do this over 3g if I wanted as well, but honestly, voice performance on 1x is still better than VoIP.