Before the Nokia launch event, Microsoft owned Skype announced that the internet voice and video service would allow users to purchase Skype Credit by billing it to their mobile carrier starting in October. This service will be first available to Mach customers who previously could use carrier billing to pay for apps on the Windows Marketplace. The news release from Skype came right before the Nokia launch of new smartphones powered by Windows mobile software which has a higher integration of Skype.
The move by Skype is seen as a new direction for the Microsoft owned company as it tries to drum up more business. The idea behind carrier billing is that Skype will be able to get more customers to use the service on their mobiles if they can quickly and easily pay for Skype Credit. Skype’s General Manager of business operations, Neil Ward, summarized the goals and motivation of his company by stating that, “Delivering a strong user-experience has been at the heart of Skype’s adoption by millions of users globally, and we want to extend this philosophy to the payment options we provide. We expect ease of payment to attract new users, while existing users will become more profitable customers as they increase their spend with us.”
When Skype first came out many telecommunication carriers say the start up as a threat to their bottom line. However, relations have thawed and Skype has tried to cozy up to the traditional telecom sector by working out deals similar to the one announced today. Carrier Billing has attracted the attention of the large telecom because it offers them another revenue stream which did not exist before or were being monopolized by other firms. For example, carriers that offer support the iPhone get no cuts from purchases of apps or other services through Apple’s ecosystem. All they are able to do is charge for data services and nothing else. With carrier billing they can get a piece of the action because trends have shown people using apps will purchase something on the mobile if paying for it is easy.
Source: TechCrunch
Photo: Radvision