AT&T: Just kidding! VoIP apps like Skype can run on our network

October 6, 2009 | Kim-Mai Cutler | Comments | |

picture-30AT&T, the iPhone’s exclusive wireless carrier in the United States, said it has paved the way for Apple to let voice-over-Internet-protocol apps like Skype run on its 3G network instead of only on nearby Wi-Fi connections.

VoIP technology allows voice calls to be treated as data, making them significantly cheaper per minute.

The “iPhone is an innovative device that dramatically changed the game in wireless when it was introduced just two years ago,” said Ralph de la Vega, president and CEO, AT&T Mobility & Consumer Markets. “Today’s decision was made after evaluating our customers’ expectations and use of the device compared to dozens of others we offer.”

The move puts a thorn into Apple’s side as it wrestles with whether to allow apps like Google Voice onto the iPhone. While Google Voice isn’t a VoIP app per se, its technology can be used to make cheap calls. Apple told the Federal Communications Commission that it is still “studying” Google’s app, while the search giant told the federal agency that it was flatly rejected.

VoIP applications may threaten AT&T’s more traditional revenue models as subscribers turn to the apps to make calls instead of dialing through the network. However, locking in consumers to two-year contracts and data plans may mitigate this.

Skype, which is wrangling with its own legal issues over whether it owns the peer-to-peer technology underlying the service, applauded AT&T’s decision. The company’s president Josh Silverman said Skype has been downloaded on 10 percent of all iPhone and iPod devices.

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About the Author, Kim-Mai Cutler

Kim-Mai was born and raised a stone's throw from Apple headquarters in Cupertino by a devout Hewlett-Packard family. After attending UC Berkeley, Kim-Mai worked for Bloomberg, The Wall Street Journal and Dow Jones Newswires in New York, Los Angeles, London and Buenos Aires. Follow her on Twitter at @kimmaicutler, and follow VentureBeat on Twitter at @venturebeat.

  • IGT
    There is still much to be desired from skype service as a real alternative to voice calling. The data rate and its coverage in the area you happen to be in will adversely affect the call experience in sound quality. This might be a programing issue or the nature of sound data transfer, however given that most already have free unlimited calling, I don't see how skype use will be damaging to AT&T's revenue model.
  • We must be way behind because we have yet to begin to use Skype, although we have thought about it many times. Perhaps sometime in the near future we will begin to utilize Skype for some video conferencing
  • skypeishype
    WWW.SKYPEISHYPE.COM Skype is just hype. With so many litigations pending and technology issues, the service may soon be forced to shut down. We offer browser-centric cross-platform technology based on US Patent 7,089,319. We are seeking venture capital. Visit www.skypeishype.com for detsil
  • pedrob03
    When will this be in effect? Just tried to use Skype over the network and received the same old message informing me that the service must be used over Wi-fi.
  • skypeishype
    We are the team of inventors behind US Patent 7,089,319 issued in 2006 titled "Method and system for instantaneous on-demand delivery of multimedia content over a communication network with aid of content capturing component, delivery-on-demand client and dynamically mapped resource locator server".
    We introduce "Skype-killer" application, with new innovative "Internet broadcasting" functionality, as well as unmatched web browser centric cross-platform, cross-device reach. We will be able to compete on VoIP signal quality, innovative "Orbing" (P2P live and pre-recorded video broadcasts by individuals), as well as lower cost base. Skype is facing multiple litigations and is about to either be shut down permanently, or enter very expensive settlement arrangements. Plus, Skype is not in control or ownership of Global Index technology, the node forming augmentation of delivery system which they push to each user computer.
    We are actively pursuing venture capital. Please visit www.skypeishype.com for more detail.