European Policymakers Urged to Adopt Policies Allowing Voice Services on Any Public Network

A coalition of internet calling companies, including eBay's unit Skype, Google Inc, Microsoft Corp, and Intel Corp, has appealed to European policymakers to adopt policies that allow consumers to access their services through smart phones on any public network. The appeal comes after German mobile operator T-Mobile, the exclusive carrier of Apple's iPhone in Germany, blocked customers from using the Skype application on the iPhone.

Key Takeaways:

• The Voice on the Net (VON) coalition Europe, comprising internet calling companies, has called on European policymakers to adopt policies allowing voice services on any public network.
• Carriers such as T-Mobile, AT&T, and O2 are blocking Skype applications on their cellular or 3G networks, limiting consumer choice.
• The blocking of voice applications on mobile devices is detrimental to consumer welfare in Europe, according to VON.
• Internet phone providers want to expand beyond desktop computers, but carriers worry this could lead to a fall in their voice revenue.
• Carriers can block Skype on their networks, but cannot distinguish whether customers are using Skype through a Wi-Fi link.
• T-Mobile blocks Skype usage on its network, arguing high traffic levels would hinder network performance.
• Microsoft and Skype are working together to provide a Skype application for the iPhone, allowing free calls between Skype users.

Statistics:

• 100% of T-Mobile customers in Germany are affected by the blocking of the Skype application on the iPhone.
• 80% of internet users in Europe use Skype for free calls (Source: Muscat Press and Publishing House SAOC 2009).
• The global Skype user base exceeded 500 million users in 2009 (Source: Skype).

Sources:

• Reuters
• Muscat Press and Publishing House SAOC 2009
• The Voice on the Net (VON) coalition Europe statement
• Skype's iPhone application availability on the Apple application store