Skype iPhone app is released and all hell breaks loose for FCC and AT&T

Skype has been on Windows Mobile/Windows CE since
2004<https://developer.skype.com/WindowsMobileSkype/ReleaseNotes#head-8d471a8cf29add4c5db56b68b8f4b24145a85cce>.
I remember trying it out a few years ago on a T-Mobile device here in the
US.  It didn't seem like a big deal.  Perhaps because at that point there
was only GPRS speeds for data and the application (and the OS) were so
clunky, that the ten unintuitive steps I had to do to activate Skype made it
too tedious.  It got uninstalled.

Fast forward a few years.  3G wireless data speeds are more than capable of
carrying voice data.  Even high quality, better-than-landline SILK audio
codec data <http://ww.9to5mac.com/skype-silk> is easy pickings for modern
telco networks.  Add to that a smooth and intuitive user interface that
Skype's iPhone application employs.  It also doesn't hurt that just about
everyone I know is on Skype, including everyone I work with and even senior
members of my family.

Skype just had over one million iPhone app downloads in two
days<http://www.9to5mac.com/skype-iphone-million-downloads>.
That is over six downloads per second.  One out of every 30 iPhone and iPod
touch owners downloaded it in the first two days.  Many more will follow.
Perhaps the enormousness of that feat and the fact that some developers were
able to get Skype working over 3G on the 3.0 beta
firmware<http://9to5mac.com/skype-works-on-3G-3.0>and reported great
results has the telcos worried.

[image: block skype]Already T-Mobile in Germany is fighting to keep Skype
off of the iPhone<http://9to5mac.com/tmobile-cutting-off-skype-to-iphone-users>.
Canada's least favorite ISP, Rogers, is doing the same.

Add to that the fact that the FCC is being
pressured<http://9to5mac.com/fcc-skype-block-att>by the open-Internet
advocacy group Free Press to make telcos Net neutral.
This means that they won't be able to block certain types of packets -- like
Skype and video streaming (and Torrent traffic).   It also means that they
will be unable to prevent Internet tethering to be done on phone devices.

This is what has the telcos
worried.<http://blogs.computerworld.com/skype_for_iphone_doesnt_bode_well_for_at_t_telcos>
A Skype experience that far surpasses that of what AT&T and the others have
to offer.  Better call quality, better interface, more features, cheaper
cost and more compatibility with other platforms both carrier (Wi-Fi, WiMAX,
DSL, Cable, etc.) and operating system (Windows, Mac, Linux, Symbian, etc.).


About the only thing Skype can't do is call 911, which I imagine will be
something that the telcos will put forward when they try to convince
governments that they need to block Skype.

But it isn't just Skype.  There are many other VoIP players out there.
You'll have heard of Cisco and Vonage and probably Asterisk, but there are
hundreds of other players operating on the SIP
protocol<http://en.wikipedia.org/wiki/Session_Initiation_Protocol>.
Even Apple's iChat initiates voice and video using SIP.

If the FCC decides to open up the telcos, Apple might be able to release
their super secret, fully functional iChat for iPhone application*.

How can the telcos win on this one?  I don't see a way out, VoIP is here to
stay -- and it isn't blockable.  It isn't hard to route your VoIP traffic
over Web ports or random ports that AT&T isn't looking for.  The current
strategy of paying off lobbyists, which in turn, own a few government
officials, will only work for so long.

My advice for the telcos?  Embrace the wireless ISP role that you are being
forced into.  Three, the UK upstart, includes Skype on all of its
smartphones.  While it may lose out on some revenue, it does get a loyal
following that may not get ripped off on long distance charges, even if VoIP
users will most likely suck up a lot more bandwidth.

How about a data only plan for the iPhone AT&T?  $60/month including
tethering.  While it has to sound scary, it is the future.

Otherwise, I'll do it myself with a
Cradlepoint<https://www.amazon.com/dp/B001212ELY?tag=thepartim-20&camp=0&creative=0&linkCode=as4&creativeASIN=B001212ELY&adid=0QMRBH714SGPKK39D0EN&;>.


http://blogs.computerworld.com/skype_iphone_app_is_released_and_all_hell_breaks_loose_for_fcc_and_at_t

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