Archive for February 16th, 2010

SDRNews: Verizon Makes the Move

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Verizon’s Move

by Andrew McCaskey
The move by Verizon to allow Skype on it’s network is a smart one indeed. It substitutes a capability of low and decreasing value to them fot the tradeoff of locking in a whole new set of customers.

Technology early adopters are going to be the one’s rushing to do the Skype to Skype calls. The mass of customers are not going to be climbing on that bandwagon any time soon.

What the early adopters will do is buy a qualifying data plan so they can brag about the free calls. And then move on to video streaming, pulling Pandora audio on the move, downloading, originating video and all sorts of bandwidth intensive process. And, with a set of Android based smartphones with Flash, to fit right in naturally.

How much demand for switching and trunking on the Verizon network ? Not much. The regular customers will continue, and the data customers will assure steady demand for raw bandwidth, without additional switching fabric.

The Skype to Skype calls may be free, but you can be sure the data bandwidth will not be. And besides that, the regular customer’s will be paying for it all, adding unlimited texting to their existing voice plans.

A good deal, for sure. AT&T’s SlingMedia deal is not looking so sweet.

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