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Could Microsoft-Skype Mean the End of Carriers?

For those who haven’t already heard, Microsoft has purchased Skype for over $8 billion. There are plenty of reasons why Microsoft was smart in making this deal, even if the price was hefty. However, in the week since the purchase was officially announced, there has been a lot of talk about all the vast implications of the Microsoft-Skype deal. At the top of the list is the potential impact this new deal on mobile carriers. Some are even saying that Skype’s shift into the Microsoft empire could mean the end of wireless carriers.

More on the Microsoft-Skype Deal

There were many rumors on who might purchase Skype, with other potential buyers including both Facebook and Google. Whether or not those interests were genuine, however, were in question. Some speculate that Google only hinted interest to drive up the buying price, ensuring that Microsoft couldn’t get away with a cheap grab at an established phone group. Whatever the motives and bids, Microsoft did end up tossing over $8 billion at the formerly eBay-owned company. That’s a far cry from the $2.75 billion Skype was valuated at in 2009, and a little surprising given the $7 million loss that Skype posted last year.

But, realistically, that’s all water under the bridge. Microsoft has a lot to gain from the partnership, especially through integrating Skype with existing services, including but not limited to Windows Live and Windows Phone 7.

Death to Carriers!(?)

How do we get from “Skype might be integrated with WP7” to “all carriers must die?” The confusion comes from the fact that we’re missing one step, but perhaps only one. Microsoft is now in a position to become carrier independent by using Skype to run its call data on WP7. The fact that Microsoft and Nokia are also working out a deal may mean that the hardware end is covered, should Microsoft try to break away from big companies like AT&T, Verizon, T-Mobile, and Sprint. Google has a similar capability thanks to Google Voice, Android, and its partnerships with various hardware groups (most notably Samsung, the creator of the Nexus One and Nexus S, which Google tried to market without carrier assistance).

You can also add Apple to this list, and (some say) Amazon, meaning that there are four groups who could break away. If one does, the rest may well follow suit.

[via Google Watch and Redmond Pie]

 

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Rob D Young

Rob has been insatiably obsessed with Google, search engine technology, and the trends of the web-based world since he began ...