3 UK to make Skype calls completely free

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London, 23 April. In a world first, 3 UK is opening up its network to allow anyone with a 3 SIM and a compatible handset to enjoy unlimited Skype-to-Skype calls and instant messages without ever having to pay. From 1 May, there will be no data charges or top-up fees for either contract or pay-as-you-go customers who use Skype on 3’s UK network. Anyone with a 3 Skype-enabled handset will be able to buy a 3 SIM and talk as much as they want to other Skype users without ever having to pay another penny.

http://threemediacentre.co.uk/Content/D ... wsAreaID=2


Some people may say it's already free, but that has been conditional

whereas now:

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• Unlimited free Skype-to-Skypecalling on pay-as-you-go tariffs with no need for monthly credit top ups. All new customers will need is a pay-as-you-go SIM from 3 costing £1.99, which can be used, initially in any Skype-compatible 3 handset.

I think they are mad.

Although 3 think this will be a grand marketing ploy to draw in more customers, are they conceding a bit too much in this symbiotic relationship, when some people already have or will find workarounds to make free calls to pstn landlines as well?

But I suppose landlines are heading towards close to costless on many mobile contracts anyway, so why bother with complication?

And I wonder if the mobile networks will have a future problem with possibly having given away their HS data deals too cheap, and then funding more capacity to overcome contention

Reply from mazilo on Apr 23, 2009 - 08:14 PM

I thought Skype2Skype call has always been FREE since the get go.

Reply from satphoneguy on Apr 24, 2009 - 02:23 PM

the difference now is that after you buy the intial SIM you never have to give 3 another cent to keep using skype. before you had to spend a minimum every month on regular calling to keep your service active.

Reply from mazilo on Apr 24, 2009 - 04:39 PM

Like I said before, Skype2Skype call is always free even without a SIM card. Why pay for a SIM card, if you can place free Skype2Skype calls? I just don't get it.

Reply from satphoneguy on Apr 24, 2009 - 05:59 PM

Mazilo,

this amounts to free use of a cell phone network without paying the network operator anything. the 3 skypephone does not work without a SIM card installed.

Reply from mazilo on Apr 24, 2009 - 06:34 PM

IC. Sorry, I don't use cellphone.

Reply from Nik on Apr 24, 2009 - 08:11 PM

Hi, very interesting how Skype in 3 cell phones looks like? It's a phone app like Fring or something else? Fring users be able to use this app without SIM card installed: http://www.youtube.com/watch?v=aPPrKUKkc8Q if 3 use same type of software, why not, but if I understand it works only with Wi-Fi connection, not with mobile internet, and anyway need to pay 3 for normal mobile calls and data plan. I think 3 just response to active development Skype app for iPhone and G1,and simply want's keep own customers in own network with Skype.

Reply from ianplain on Apr 24, 2009 - 09:15 PM

Hi

Almost all phones except the rugged samsung have a 3 client and mean that you can have free calls even without a datapackage.
I have an old Nokia from 3 that I use for just this use.

And as the calls are over the mobile network not the data netork call quality is as if it was a normal call

have a look at their website here http://www.three.co.uk/Internet_Service ... 0455597804

Ian

Reply from Nik on Apr 24, 2009 - 10:07 PM

Well, it looks very promising, really this is amazing idea, gave 3 customers ability use Skype and other web apps(?) for free in own network without additional cost and no data connection. Almost all mobile carriers in the world put the war between VoIP, Skype and normal mobile phone calls, but 3 have own opinion. Cool.

Reply from dean on Apr 26, 2009 - 07:54 PM

In the Press Release the clarity of understanding that 3 has of their customers should serve as a bow shot for most VoIP operators (who for the most part don't know or understand their customers at all).

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3 UK has found that regular Skype users: * Are less likely to churn than non-Skype users * Use more traditional voice minutes than non-Skype users in addition to calling their Skype contacts * Use Skype IM, but also send more SMS than non-Skype users * Are more likely to browse the internet on their mobile * Are higher margin customers * Are twice as likely to access social networking sites as non-Skype customers

http://www.threemediacentre.co.uk/Conte ... wsAreaID=2

Very interesting set of data that. Reminds me of the mobile operators in the early-mid 1990's when "on-net" calling became all the rage (remember that Mercury 1-2-1 campaign?).

What this data tells us is that if 3 give Skype calling away for free they actually make more money and churn less. Fantastic.

Reply from dean on Apr 27, 2009 - 12:36 PM

Nice overview from long time Skype watcher Jim Courtney:-

http://voiceontheweb.biz/2009/04/3-push ... -services/

Reply from andyk on Apr 27, 2009 - 03:39 PM

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Nice overview from long time Skype watcher Jim Courtney:-

Some points arising from that article:

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... using the HSDPA protocol. And, of course, any VoIP-based service requires a high speed data network.

How long will it be before people drop this myth that Skype on a mobile uses loads of data? It's a disguised GSM call via a pstn gateway. Data is only used for presence and similar info.

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Will this service be available to 3’s UK customers when they are roaming in other 3 countries, such as Austria, Denmark, Italy, Sweden and Ireland?

3 Like Home is about to be discontinued on 30th June

http://www.three.co.uk/Help_Support/Int ... ay_Monthly

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3 is also lobbying within the EU for reduced termination charges and “fair pricing for roaming”.

I've seen 3 claim this before, but I'm not sure if it is a joke.

3 has higher termination charges than the other 4 main UK networks, from which one could hypothetically construct an assertion that 3 is being subsidised by assymmetric rates

Although (or perhaps because) the slide in the £ exchange rate makes UK networks' roaming fees lower than the Eurotariff, 3 actually increased its roaming fees in Europe earlier this year (from cheaper than other UK to about the same), and is abolishing 3 Like Home, as above.

Reply from andyk on Apr 27, 2009 - 04:44 PM

from Dean's post:

Quote:

In the Press Release the clarity of understanding that 3 has of their customers should serve as a bow shot for most VoIP operators (who for the most part don't know or understand their customers at all). What this data tells us is that if 3 give Skype calling away for free they actually make more money and churn less. Fantastic.

What many VoIP operators don't understand is that there isn't necessarily much money in it. Huge marketing and infrastructure budgets might not be clever when ordinary pstn calls are getting cheaper as well. Would I spend $15 on unlimited landlines if BT can offer this for £5, and I can find othjer ways for occasional international calls?

Correction about the 3 data: what it says is that they can actually make more money giving Skype away free in conjunction with paid-for packages.

Whether that will carry over to totally free Skype on its own, who knows, especially if they are serious about allowing SkypeOut and cutting or waiving incoming termination rates?

To begin with, Skype on 3 came without SkypeIn and SkypeOut options. But keen users could find some workarounds for both of these, and they didn't all involve needing a PC left running at home.

It's possible to have a free incoming landline numnber forwarded to a Skype account on 3, and to make free calls to landlines, and have outgoing calls to mobiles cheaper than 3's rates. Not many will do these of course, but having removed the requirement for regular top-ups, 3 and Skype are exposed to a possibility of having some customers who earn them virtually no revenue at all.

Reply from dean on Apr 27, 2009 - 04:55 PM

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What many VoIP operators don't understand is that there isn't necessarily much money in it.

There's money in it if you know where to look and you have a compelling (and unique) proposition. The first thing in understanding where to look is the nature of your existing customers behaviour. I have a client that thought they were selling to consumers, but on close examination of their call records it was clear that over 70% of their userbase are actually small businesses.

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what it says is that they can actually make more money giving Skype away free in conjunction with paid-for packages.

It's more subtle than that. They're saying they make more money giving Skype away for free, full stop. The revenue that follows is a pattern of the Skype user. What they're saying is Skype customers are a good value aquisition. Of course you need paid-for packages on offer, that is obvious but can be as simple as paid minutes. You could read this as "Skype users are exceedingly chatty". That's all a mobile incumbent needs to know.

Reply from andyk on Apr 28, 2009 - 09:11 AM

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They're saying they make more money giving Skype away for free, full stop.

Actually they aren't making any money at all

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Losses at the group, which hit £1.4 billion five years ago, were reduced this year to only £152 million. The network now has 4.9 million customers —8 per cent of the UK market 3’s strategy is to lure in customer with value for money deals such as Skype then encourage spend on other services.

http://www.mobiletoday.co.uk/Carphone_i ... _drop.html

I wonder if Skype being totally free, removing any obligation to top up, will improve that picture

One of the great mysteries is why Hutchison quit the UK market by selling Orange, then changed their minds

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