Is Skype affecting Nokia's Windows Phone sales?

When Microsoft bought Skype in October 2011, it was seen by many as a way for Microsoft to expand its business into areas that were being taken over by Facebook and Twitter. Now a new report claims that the Skype purchase may be affecting the sales from another division, Windows Phone.

In a blog post by author Tomi T Ahonen, he states that during this week's Nokia shareholders meeting, Nokia CEO Stephen Elop said that " ... Nokia, together with Microsoft, is now attempting to convince carriers/operators to accept Skype against their wills, by marketing/pricing/sales gimmicks."

If true, this could mean that some wireless carriers feel that Microsoft's acquisition of Skype was a conflict of interest in terms of Microsoft also trying to sell Windows Phone-based devices, such as Nokia's Lumia series, to those same wireless carriers. Today, a shareholder in Nokia filed a lawsuit against the company, claiming that the company's move to Windows Phone was not going as well as advertised.

So far, no Windows Phone devices have Skype pre-installed. The 1.0 version of Skype for Windows Phone was recently released on Windows Phone Marketplace. However, it does lack a number of important features, such as being able to run in the background.

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Lets compare to be fair. Android has had not only Skype available but alternatives as well for a long time. No carrier complaints.
Apple has facetime which can be argued to be better or worse. No carrier complaints there.
Microsoft releases WP7 and buys out skype... and just RECENTLY released a skype app, and now this is the end of all cell carriers?
It's no secret that WP7 doesn't have the marketshare of apple or android. Why worry about the longshot? Do they know something we don't?

Omigosh, who is this feeb Tomi Ahonen? As has been mentioned, Skype isn't even integrated into the OS (yet!), much less installed by default. And all I have to say for carriers is: DATA PLANS. What a stupid, idiotic, lame-brained complaint to make. While it definitely performs better over WiFi, it's not too hateful on LTE---and I have access to LTE in more places than I do free, unfettered WiFi! So, I should think that feature that draws people to higher data plans would be a disired thing by carriers. This Ahonen is a fool.

Because Skype isn't available on any other platform right? Seems quite petty to blame MS and penalize WP for the telco's fear of VoIP products.

oh good greif, at what point are cell carriers going to realize minutes and text are dieing and data is taking over

consumers' desire to buy is more powerful than carriers. i'm living in turkey and i have windows phone that i've bought from another country since march 2011. there was no official support for windows phone here in 2011. same thing happened for iphone too in 2008. so, what microsoft should do is making windows phone more attractive with ads and new features like integrated skype, then consumers will want to buy windows phone and carriers will have to sell it.

At&t is the major carrier for the Windows Phones but does not release any updates to fix a vanishing keyboard that effects everybody who has the Mango version of Windows phone 7. In April, the Nokia Lumia 900 and HTC Titan 2 is released with LTE and is shot down by questions of rather it is going to get the Apollo update. All of a sudden the Market in Zune Player vanishes out of the blue. Microsoft is responsible for what may happen to the Windows Phone..not Skype.

JSYOUNG571 said,
At&t is the major carrier for the Windows Phones but does not release any updates to fix a vanishing keyboard that effects everybody who has the Mango version of Windows phone 7. In April, the Nokia Lumia 900 and HTC Titan 2 is released with LTE and is shot down by questions of rather it is going to get the Apollo update. All of a sudden the Market in Zune Player vanishes out of the blue. Microsoft is responsible for what may happen to the Windows Phone..not Skype.

MS should of took the apple route, and just released firmwares instead of having carriers approve them then release them

At&t is the major carrier for the Windows Phones but does not release any updates to fix a vanishing keyboard that effects everybody who has the Mango version of Windows phone 7.

They'll be releasing Tango in a few weeks which fixes that problem. Sure I wish they'd just release 8107 by itself but they'd rather just release it as one big update.

In April, the Nokia Lumia 900 and HTC Titan 2 is released with LTE and is shot down by questions of rather it is going to get the Apollo update.

Lumia 900 is selling quite well tbh and there's already proof that its being tested with Windows 8.

The Titan 2 on the other hand is just a giant joke of a device. HTC releases Titan 1, and 3 months later marks it under End of Life and sells the Titan 2 with the only difference being the LTE radio.

All of a sudden the Market in Zune Player vanishes out of the blue.

Who cares? Microsoft's own research showed that barely anyone uses the Zune player to find apps, you can do it on your phone just fine or you can use windowsphone.com. So why support 3 different app delivery paths when the other 2 work just fine?

MS should of took the apple route, and just released firmwares instead of having carriers approve them then release them

I agree, but for that to happen WP would have to become quite popular first, otherwise the carriers have MS by the balls. To be honest this is only a problem in the US and with AT&T in general. Every other network around the world delivered 8107 (the latest one) within a month of it being released without any issues. AT&T is currently the only carrier who hasn't done it.

butilikethecookie said,
Windows phone itself is nice. Its apps...not so much.

Have you actually used a Windows Phone? Most of the cross-platform apps are actually much nicer. Skype is only lacking because of the current limitations which will be resolved in Apollo.

j2006 said,

Have you actually used a Windows Phone? Most of the cross-platform apps are actually much nicer. Skype is only lacking because of the current limitations which will be resolved in Apollo.

For like 10 min.! Drew my conclusion to fast did I?

The fact that the Playstation Vita has better Skype Integration then Windows Phone (nevermind other actual phones like Android phones) - I'd say this is an extremely poor reason for carriers to shy away from Windows Phone.

The Teej said,
The fact that the Playstation Vita has better Skype Integration then Windows Phone (nevermind other actual phones like Android phones) - I'd say this is an extremely poor reason for carriers to shy away from Windows Phone.

Microsoft will integrate Skype into the OS core in vNext, and this is a big f reason for carriers to shy out... people should realize that MS is fighting the good fight against carriers in this case (of course for their own benefit but right now the end users' goal and theirs coincide) despite that they're not just new but not too significant right now - Apple is somewhat the same, they bitchslapped carriers plenty times and that's a GOOD thing; while Google gets in bed with pretty much anyone to sell their low-end Android terrors

The Teej said,
The fact that the Playstation Vita has better Skype Integration then Windows Phone (nevermind other actual phones like Android phones) - I'd say this is an extremely poor reason for carriers to shy away from Windows Phone.

Agreed. I think they're just using it to negotiate better.

This could be a issue only in the next version of WP, v8 where MS plans to integrate skype more with the core OS, but as it stands now I don't see how skype can mess up what the carriers are doing. I mean, unless you're always on wifi then you'll need a data connection at some point to make a skype call, so the carriers will get paid in the end the way I see it. Data is where it's at, and the carriers know this, so they're charging way more for you to use that then normal voice and text which one can now get for pretty cheap.

GP007 said,
This could be a issue only in the next version of WP, v8 where MS plans to integrate skype more with the core OS, but as it stands now I don't see how skype can mess up what the carriers are doing. I mean, unless you're always on wifi then you'll need a data connection at some point to make a skype call, so the carriers will get paid in the end the way I see it. Data is where it's at, and the carriers know this, so they're charging way more for you to use that then normal voice and text which one can now get for pretty cheap.

Carriers are greedy so they want to charge you for voice AND data. So they dont want anything that takes away from one of their potential money makers.

I think this is probably about WP8 too personally. And it would make sense from the time frame as well as they try to get WP8 ready for launch in the fall.

Carriers should return to their roots. Being dumb pipes. And BTW, MS has to remove carriers from the "update equation". It's ridiculous how much power carriers have over the phone updates.

Drossel said,
Carriers should return to their roots. Being dumb pipes. And BTW, MS has to remove carriers from the "update equation". It's ridiculous how much power carriers have over the phone updates.

That's never going to change, unless Microsoft pays them a ton of $$.

Carriers have full control over which phones they put on their network. If there's a phone that will have updates for the next 5 years, they won't want it cause their consumers will never buy again!

There's noting illegal about not including some phones on your network, so unless MS throws big $$ at them, nothing will change, simple economics.

Drossel said,
Carriers should return to their roots. Being dumb pipes. And BTW, MS has to remove carriers from the "update equation". It's ridiculous how much power carriers have over the phone updates.

I agree 100%. I wish this were possible.

andrewbares said,

That's never going to change, unless Microsoft pays them a ton of $$.

Carriers have full control over which phones they put on their network. If there's a phone that will have updates for the next 5 years, they won't want it cause their consumers will never buy again!

There's noting illegal about not including some phones on your network, so unless MS throws big $$ at them, nothing will change, simple economics.

I understand what you mean, but it wouldn't be that hard to achieve the iPhone style updates. Carriers mostly care about the radio part of the OS (GSM, edge, 3G, whatever), so MS should just make WP8 modular. Carriers could update the radio part via their channel (OTA), and MS would have its own channel for the rest of the OS updates. IIRC, RIM is trying to this with their new BB 10 OS.

Drossel said,

I understand what you mean, but it wouldn't be that hard to achieve the iPhone style updates. Carriers mostly care about the radio part of the OS (GSM, edge, 3G, whatever), so MS should just make WP8 modular. Carriers could update the radio part via their channel (OTA), and MS would have its own channel for the rest of the OS updates. IIRC, RIM is trying to this with their new BB 10 OS.

Carriers hate the iPhone model (they love the sales numbers though), they hate the power apple have and wont make the same 'mistakes' again in a hurry (I wish they would).

Its like iTunes and the music industry, iTunes is the bully over the industry and the industry is now on guard for any other service becoming too popular and too far out of their own control.

duddit2 said,

Carriers hate the iPhone model (they love the sales numbers though), they hate the power apple have and wont make the same 'mistakes' again in a hurry (I wish they would).

Its like iTunes and the music industry, iTunes is the bully over the industry and the industry is now on guard for any other service becoming too popular and too far out of their own control.

True that.

I adore how Apple played that game and brought a little more power back from the greedy super corporations.

For example: Nowadays it's much much simpler to sell something on the iTunes store than it ever was to get a deal with a label.
You can submit your works without a label and get a LOT more in return for your sales.
I think, albeit I adore having booklets, CDs/other optical media and boxes, this is the true future and labels and other kinds of big corporations realize this.
Instead of going by the times they try to fight their enemies.
*sigh*

GS:mac

Glassed Silver said,

I adore how Apple played that game and brought a little more power back from the greedy super corporations.

I love how Apple is now the greediest super corporation of them all.

Enron said,

I love how Apple is now the greediest super corporation of them all.


As a musician I'd much rather get the Apple split profit deal over a label's one.

GS:mac

I've personally not been paying a smartphone contract for the last year because of Skype, I've been using my iPod which is connected on all the public transport here in Spain with Wifi and allows me to make free calls and to send messages to all my friends without a contract. I think they need to start producing a device for Skype that isn't a traditional phone, just a Wifi enabled one, that the future in my opinion anyway, the phone signal will die a slow death apart from sending emergency messages as Wifi will become available everywhere. In Spain now it's on all forms of transport except the train for free (I.e. busses) and in all public places for free.

UKer said,
I think they need to start producing a device for Skype that isn't a traditional phone, just a Wifi enabled one.

I think those exist.

metsfan421 said,
Skype is not affecting Windows Phone sales! NEXT!

Agreed. This is truly absurd. Sounds to me like the carriers are just trying to be difficult in an attempt to bargain a better arrangement for themselves.

metsfan421 said,
Skype is not affecting Windows Phone sales! NEXT!

I'm not so sure, there's evidence that others in the industry (the VoIP industry) are feeling worried about the Skype deal, look at cisco filing suit against the deal saying it'll give MS too much presence in the VoIP market (linking Skype to Lync, and messenger, would bind business users with Skype users and messenger users and all would be able to talk without a single penny going to anyone - its just data (obviously carriers get the data rates, but no per second billing, yes this applies to all VoIP but the integration of those 3 platforms would make it almost ubiquitous overnight)).

The carriers know its a matter of time until Skype will run on windows phones as a native app (windows 8 will allow apps like this to plug into the people hub, making it seem like a part of the OS and allow calling from the people hub - so you'd have listed as communication methods on a contact:

Call mobile
Call via Skype
Text
email
IM etc.

This will make a huge difference but the carriers are scared of this really taking off.

Again VoIP is nothing new and a lot of people use Skype, but its a separate app right now and theres too many people that people know that aren't using it, the windows deal will mean at some point ALL live users, ALL Skype users and ALL Lync users will be able to effortlessly call each other for free.

duddit2 said,

I'm not so sure, there's evidence that others in the industry (the VoIP industry) are feeling worried about the Skype deal, look at cisco filing suit against the deal saying it'll give MS too much presence in the VoIP market (linking Skype to Lync, and messenger, would bind business users with Skype users and messenger users and all would be able to talk without a single penny going to anyone - its just data (obviously carriers get the data rates, but no per second billing, yes this applies to all VoIP but the integration of those 3 platforms would make it almost ubiquitous overnight)).

The carriers know its a matter of time until Skype will run on windows phones as a native app (windows 8 will allow apps like this to plug into the people hub, making it seem like a part of the OS and allow calling from the people hub - so you'd have listed as communication methods on a contact:

Call mobile
Call via Skype
Text
email
IM etc.

This will make a huge difference but the carriers are scared of this really taking off.

Again VoIP is nothing new and a lot of people use Skype, but its a separate app right now and theres too many people that people know that aren't using it, the windows deal will mean at some point ALL live users, ALL Skype users and ALL Lync users will be able to effortlessly call each other for free.

True, but with what data costs are, the carriers have absolutely no reason or excuse for raising a ruckus over this nonsense. They're already raping us on data and putting caps in place. It shouldn't matter how we use our data.

M_Lyons10 said,

Agreed. This is truly absurd. Sounds to me like the carriers are just trying to be difficult in an attempt to bargain a better arrangement for themselves.

It might be that carriers have more details about the upcoming WP8 than us; who knows? Maybe Skype and WP8 are integrated and could allow new kind of functionalities like always prioritize the use of voip and leave regular voice call as the last option...........
I would like to know though.........

M_Lyons10 said,

True, but with what data costs are, the carriers have absolutely no reason or excuse for raising a ruckus over this nonsense. They're already raping us on data and putting caps in place. It shouldn't matter how we use our data.

I know it shouldn't matter (in a fair world) but it will. If most calls start to be placed via Skype then they will lose the grip on minutes billing and texting (this is their main bread and butter). They will fight tooth and nail to keep a hold on this income as its not as easy to replace with data billing (as people rightly make comparisons between std broadband (ADSL/Cable) and mobile broadband, after all its the same internet and the only difference is the access method which the carriers themselves own).

MS are apparently trying to entice operators with deals and offers of adding their own VoIP services into the people hub much like how Skype will integrate, but its complicated.

At the end of the day, MS cant bully the operators or we end up with them not supporting the platform properly so its a sticky patch and hopefully MS can push things through, a world of VoIP and cheap calls, better data connectivity and easier connectivity between each other.

duddit2 said,
I'm not so sure, there's evidence that others in the industry (the VoIP industry) are feeling worried about the Skype deal

I'd be more worried about google trying to foist its G+ crap on every other google product user, rather than Microsoft's buyout of probably the most successful and useful EXISTING VOIP product in the market..

metsfan421 said,
Skype is not affecting Windows Phone sales! NEXT!

It is affecting who is deciding to carry it... Thus it is not offered by several carriers, thus it IS affecting availability and thus is affecting sales.

Get it?

JhonKaBrohamski said,
You have to be kidding me! Millions of people use Skype and more than likely half of them never knew that Microsoft bought them out.
And the users aren't the subject of this article... the carriers/network operators are.