I’ve just returned from a press event in London where Three and Skype unveiled the much-rumoured ’skypephone’, a custom-built mobile phone which allows users to easily make skype-to-skype calls for free.
The phone itself has all the features you would expect: 2.0 megapixel camera, mp3 player, 3G. I have one in my possession, and it is a light, thin phone with a good screen. User experience lives up to the promises, and it needs to be; it was made very clear that this is a phone aimed at the non-techy consumer. It is possible to sign up to Skype using the handset, and existing users can log in and instantly see all their contacts.
The price point is also set to make Skypephone a mass market device. It is available on Prepay for £49.99, with a monthly top up of £10 required, or free on Contract, for a minimum of £12 / month including 100 minutes and texts.
It’s not all good news; unlimited data isn’t included in the tariff from Three, although that’s not a deal breaker, given the £5/month unlimited data plan available. More significant, however, is the absence of SkypeIn and SkypeOut from the offering. These are important features of Skype which do have an important use in a mobile context. However, SkypeIn and SkypeOut are being worked on with a sense of urgency, according to Skype.
There can be little doubt that this will be a successful device, given the feature set and the low price. So Three will get some extra customers, and reduce churn by having an extra unique selling point. However, the real story is what Skype achieves through this. By getting itself on lots of mobiles, Skype moves from being the communications method people use when, for example, it is significantly cheaper to, or want to do a video call, to a primary method of communication. As Skype’s acting CEO pointed out, widespread adoption of this would enable people to say ’skype me’, knowing that wherever they are, they are reachable through Skype. If this becomes a reality, Skype stands to gain more users and massively increased revenue.
There are some unsolved questions; there is an inevitable tension created by having two communication systems sitting side by side on the same device, with revenue from each of them going to different parties. Every time I use Skype on my phone, I am depriving Three of revenue from chargeable minutes. This will be exacerbated when SkypeOut is available - it is in direct competition with Three.
I put this, and other questions, to Tony Saigh, Business Development Manager, Mobile at Skype, in an interview this morning:
Listen | Download [mp3 - 10:19]
October 29th, 2007 at 5:35 pm
This is all nice, but who needs a Skypephone if just about any new cell phone will run Fring. Add a data plan and you’ve got the same thing, except that SkypeOut (or any other SID for that matter) already works with Fring.
October 29th, 2007 at 9:00 pm
True, I use Fring, but on Vodafone its a bit flakey. Often people at the other end complain they can’t hear me too well even if I use a WiFi connection. Strangely if I use my PC over the same Wifi connection its fine. Is this the software or Voda’s network?
October 29th, 2007 at 9:31 pm
The key differences are usability and price point. Fring needs to be downloaded and installed on an expensive smartphone. The skypephone is very cheap and comes ready to go. On top of that, there’s quite deep integration of Skype on the phone, with (for example) the contacts list on the phone being able to contain skype names and, crucially, show presence information.
October 30th, 2007 at 1:57 am
While I agree on the price and usability, my Fring also shows me the skype contacts list as well as their current status. However I admit it’s not as straightforward as simply buying a pre-setup phone.
October 30th, 2007 at 11:09 am
I was at this event yesterday also and picked up a couple of these phones which I have been testing along with another reviewer. I came from using X-Series on my Nokia N73. I found X-Series useful, but also a pain to load up the application. I often didnt use it just because I had to do 2 or 3 other steps to make a call.
What seperates the skypephone apart is how it’s more integrated with the firmware on the phone. When you hit the green phone you see who you have spoken to (on skype or a regular call), and when you look at the contacts list you see a full list of your contacts and if they are online all mixed in with the regular numbers. These features make it more attractive to me.
October 31st, 2007 at 1:07 am
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October 31st, 2007 at 9:03 am
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October 31st, 2007 at 1:27 pm
You cannot knock the price point. I think this will take off eventually. But its a chicken and egg thing. You will only get the phone if enough of your friends are on Skype.
November 1st, 2007 at 11:36 am
Excellent option for parents with kids. Cheap handset and if as JohnofScribble points out they get their friends on Skype as well this is a perfect option cheap option for them.
November 2nd, 2007 at 10:48 am
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November 6th, 2007 at 4:01 pm
I think it’s a good idea, but until they step it up a gear and offer skype In and Out calls I don’t think I’ll bother.
November 8th, 2007 at 11:45 am
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November 8th, 2007 at 3:59 pm
Great article,
The initial impact on the industry does not seem as big as first predicted, I think the current hype surrounding the impending launch of the iPhone is making every other innovation seem rather small?