[Hands0n]

What are they up at at 3 then? An interesting development from the company that would not entertain pulling down the Walled Garden (anyone remember that?) because it thought that the customer did not want Internet access.

So where does this VoIP venture with Skype take 3? And why?

More on this as we find out.



3 UK has admitted that it's working on a Skype phone to bring VoIP connectivity to more of its mobile customers.

While the mobile operator would confirm the phone's existence, exact details are scarce, though industry rumours suggest the handset will be launched Monday and available in-store by Thursday.

The phone will be available on a £12 a month contract as well as pay as you go, and will feature a 2MB camera and MP3 player as well as video playback.

3 has been offering Skype for a while, on its X-Series range, but rather cleverly the connection isn't really end-to-end VoIP. The connection from the phone handset to 3 is over normal cellular lines; circuit-switched with guaranteed quality, it then switches to VoIP for the rest of the connection. This doesn't guarantee the quality of a Skype call, but it goes a long way to mitigating the problems of being mobile.

This also means the handset doesn't have to do all the complicated VoIP stuff - and this (we understand) is what 3 is planning to launch next week.
Sources close to the firms say calls to other Skype users will be free, though it's unlikely 3 will allow SkypeOut minutes to be used.

The full details are to be announced Monday, and today (Sunday 28th) neither 3 nor Skype would confirm the finer points of the package. ®

Article Source: http://www.theregister.co.uk/2007/10/26/3_skype/

[3GScottishUser]

I suspect it's a gimmic really. A unique selling point that could attract attention as it offers free communication for a low monthly fee.

Problem is that Skype users have to be connected to a PC or another Skype enabled 3 handset to communicate with each other.

Looking back at the last year I think it is clear that 3 UK have thrown all the old restrictive thinking out of the window and have basically embarked on a policy of trying anything to get uptake and to improve retention. Free MSN, Yahoo Messenger, cheap web browsing, x-series, Skype, lower cost contracts and cheaper PAYG with rewards when you commit to 30 day validity topups. Lower roaming charges and '3 like home' also will help.

It's all about critical mass and with a huge ongoing cost base and just 3 million active subscribers they really have to pull out all the stops to develop revenue streams especially when their income from disproportionate termination charges is soon to be slashed.

The Skype proposition looks a reasonable one. It will probably be a useful product benefit at the point of sale but just how practical it will be for users remains to be seen. Free MSN looks a good prospect too, until you actually try and keep up with someone using a PC keyboard whilst holding a conversation!! Often the theory is good but the practicality isn't although I suspect it's more to do with brand affiliation really. It was not long ago that 3 UK dumped huge numbers of NEC PAYG handsets on the market (e616, e313, e338, etc) and whilst those had far better specifications than similarly priced GSM alternatives many had a short life with consumers. Once again the relibility and ease of use of basic services is the paramount issue for customers. Hopefully 3 UK have learned this fundemental principle.

[gorilla]

We had a brief discussion on the changing ways of communication a few weeks back and this is what 3 are trying to do here, or at least trying to attach themselves to that market.
With social networking changing the way people connect with each other on a daily basis, phone companies must be wetting themselves thinking about what the future holds for them. Think about 3 with a 30% churn rate. They can ill afford to be static and need to be innovative. (whether they are is another debate!) By bringing down the walled garden and offering (relatively) cheap data rates 3 are beginning to understand the needs of todays users. Whether you're skype user or not, by providing a free version on a 3 connection will hold some value for some customers.

I think this is a good move for 3, my concern is that they are promoting themselves to a niche market.

What will be interesting to see is the response from the other networks.

[Hands0n]

ok Gorilla - you win, I'm sitting here on 29th floor of Millbank Tower, guest of Skype and 3 clutching two, count them, two Skype Phones :D *Screeeeeeeeeeem*

More on this in a new post on Talk3G

[Ben]

This is a fun handset, looking very tasteful all in black. At just £50 it could be the big prepay seller this Christmas, as gimmick or no gimmick I can certainly see the pull with the kids.

I was worried it would be aesthetically uncool and tacky. Fortunately it's the opposite.

Is it any good technically? I'll be able to tell you that very shortly! (as will Hands0n!)

[3GScottishUser]

First day report:

2 handsets arrived.....

Took the USIM out of 1st one to see if I could insert another SIm to copy contacts.... nope... and the phone refused to recoginse the USIM thereafter. Before you ask I did a bit of SIM wiping. Called the suppliers and they are arranging a replacement.

Phone No 2 seems OK. Not took the USIM out (scared to do so!) and decided to register a new Skype ID on the PC. Set up the account OK, texted it and everything worked fine. Input the Skype account details into the phone and it would not allow me to access!! It kept showing a syncronisaton screen. Eventuallly I created a new Skype log-in on the phone its'elf and it works!!

I like the phone as it's neat and a good design. There is lots on it and the camera seems very clear. I took it to a youth club tonight where I work and asked the 13-17 year olds what they thought of it for the price but most were not interested as they have Samsungs and Nokias and it seems that the youth of today are very brand concious when it comes to mobiles. I tried explaining skype to a few of them but their priority seems to be texts and many now have contracts with 1000 text messages a month included.

Overall it's been a bit frustratiing today. The phone is nice and deserves to do well but it's been far from straightforward and I can imagine non-tekkie folks getting annoyed when things dont work first time out of the box.

Early days and some features have still to be added (like Windows Live Messenger) but I will be continuing to use the Amoi and having made my first Skype call look forward to reporting soon on 3 call quality and the vast range of other services on-board.