iPhone Skype may be tip of the iceberg for carriers

From InfoWorld: Though mobile operators say they want more open phone platforms and are moving toward packet-based 4G networks, they are stuck between a future of being "dumb pipes" like DSL or cable operators and a present in which the bulk of their revenue still comes from the sale of voice minutes.

The arrival of Skype for the iPhone and BlackBerry platforms at last week's CTIA trade show brought the issue to a head. The most popular VoIP (voice over Internet Protocol) platform, which claims more than 405 million users, has now made it on to two of the hottest smartphone lines. A free Skype application is available now from Apple's App Store, and software for two BlackBerry models is set to become available next month in beta testing. Skype lets users make free calls to other Skype customers and inexpensive ones to traditional phones.

The announcements were met with mixed reactions from these carriers in transition. The future 4G technologies LTE (Long-Term Evolution) and WiMax are data networks, where everything is transported as a packet. Technically, that will make any pure 4G carrier with voice service into a VoIP provider. But operators are still trying to figure out how to shift their business models to that environment, as most of their money today comes from voice services that are vulnerable to competition from Skype and others. In 2008, data services still generated only 22 percent of U.S. mobile carrier revenue, according to the CTIA trade association, which sponsored last week's show.

T-Mobile USA's CTO, Cole Brodman, pointed out the carriers' dilemma last month at the Dow Jones Wireless Ventures conference.

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