High Speed Internet Access (HSIA): Mobile Internet

3 Mobile UK will offer unlimited skype to skype calls and messages with no extra fees on any compatible 3 headset from May 1st. Shortly afterwards the service will be available with any compatible 3G phone on the 3 network. The phone won’t have to be provided by 3 mobile.

Customers will purchase a skype enabled SIM card for a small amount (about $3) and there is no requirement to make any other purchases from 3 Mobile.

It seems like a smart move especially as other operators have shunned skype seeing skype calls as a threat to their revenue. However, the reasoning behind the initiative is that:

• 3’s skypephone already makes more margin in pre-paid than any other phone except the iPhone
  65% of the UK market is pre-paid
• The churn rate is huge so operators are looking for ways to drive loyalty
• Regular skype users are good customers. They talk more, send more messages and use social networking sites
• 3 Mobile see an increase in usage of other services beyond skype when free skype is enabled
• Increased skype usage will see a decrease in calls to people on other networks which costs the network money as it attracts a fee from the other operator

So, what about Australia? I’m not aware of any moves to extend this offering to the Australian market but if the benefits are realised for 3 Mobile in the UK then we could see something similar here.

In the meantime, Australian customers can make skype calls using the excellent INQ1 phone which is free on a range of 3 mobile plans.

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