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Skype wins big over AT&T

Wednesday, 17 February 20103 min read

The US’s largest wireless carrier, Verizon, will include SkypeTechnologies SA’s Internet calling software on phones to blunt competition from AT&T Inc., according to Bloomberg News.

“The service will let customers make Skype calls over the company’s 3G data network,” said Bloomberg, quoting two sources who requested anonymity because the agreement hadn’t been announced, which should happen today.

“Verizon is relying on 3G data plans for growth as demand slows for voice calls. Teaming up with Skype could draw new users, who might boost spending on extra features,” Bloomberg said.

The agreement sets the stage for similar deals with other carriers, said Vanessa Alvarez, an analyst at Frost & Sullivan in Boston.

“It’s a big win for Skype,” Alvarez said. “The wireless operators and incumbent service providers are starting to think differently and accept these types of partnerships. Others are going to follow.”

Brenda Raney, a spokeswoman for Basking Ridge, New Jersey- based Verizon Wireless, declined to comment, Bloomberg News said.

Verizon has been trying to differentiate itself from AT&T, the second-largest US mobile-phone carrier, which has exclusive US rights to Apple Inc.’s iPhone, according to Bloomberg.

Skype has been lobbying the U.S. Federal Communications Commission to prohibit carriers from blocking Internet traffic on their wireless networks, something that’s hindered its growth. The agency may vote on these so-called net-neutrality rules this year.

By David Wilkening