Linked by Thom Holwerda on Tue 10th May 2011 08:19 UTC, submitted by porcel
Microsoft So, the biggest acquisition in Microsoft's history. The Wall Street Journal reports - and it has been confirmed - that Microsoft and Skype will announce today that Redmond will buy Skype for $8.5 billion. That's a lot of money for a company that hasn't ever actually made any profits. Update: and it's official: yay on Skype on the Xbox360 and Windows Phone, and this: "Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms." Let's hope this includes Linux.
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Wireless telco?
by Adurbe on Tue 10th May 2011 10:17 UTC
Adurbe
Member since:
2005-07-06

With Skype, Microsoft could, in theory, set itself up as a whole mobile network operator in a position to compete with the established players.

It already has the ISP infrastructure from MSN in place (the ISP not the messenger app). So it would simply be a case of developing/buying mobile data coverage (no need for 'voice' infrastructure).

One 4g licence and they could undercut the UK mobile operators in terms of cost of calls.

4g licence(s) are going on sale here in 2012 and expected to sell for much less than 3g did. The current estimates are that 4G will cover 95% of the UK

Would certainly turn the status quo on its head here...

Reply Score: 3

RE: Wireless telco?
by Thom_Holwerda on Tue 10th May 2011 10:19 in reply to "Wireless telco?"
Thom_Holwerda Member since:
2005-06-29

I would actually welcome that. Not that I would EVER want Microsoft as my carrier - I'd rather shoves pieces of faeces-drenched glass under my fingernails - but anything to shake up the carriers is welcome by me.

Reply Parent Score: 1

RE[2]: Wireless telco?
by Morgan on Tue 10th May 2011 11:07 in reply to "RE: Wireless telco?"
Morgan Member since:
2005-06-29

Thanks for that horrific mental image! (yuck)

Anyway, I doubt this is going to cause any impact on the wired and wireless voice carriers. I have a feeling that, as mentioned elsewhere, Skype technology will end up embedded in Windows 8, specifically for use on tablets but probably enabled on any device. By that time T-Mobile will be swallowed by AT&T, and likely Sprint as well by Verizon. That leaves us Microsoft-friendly AT&T vs Android-friendly Verizon, and VoIP concerns will wane in favor of the epic battle between the two carriers for your metered data consumption.

I also don't think they would automatically kill the ports to Linux and other OSes; that would cut out a significant chunk of their Windows customers' contacts. I doubt they will do much to improve performance and features on those ports either though; after all, they have an obligation to their shareholders to make Windows appear to be the superior platform.

And finally, don't forget that Google Voice is still out there, integrates perfectly with Android phones (and fairly well with Blackberry phones as well) and is free for another year in the US. I'd be willing to bet that Microsoft has plans to use Skype to try to take a piece of that pie too.

Reply Parent Score: 4

RE[2]: Wireless telco?
by tomcat on Wed 11th May 2011 20:18 in reply to "RE: Wireless telco?"
tomcat Member since:
2006-01-06

I would actually welcome that. Not that I would EVER want Microsoft as my carrier - I'd rather shoves pieces of faeces-drenched glass under my fingernails - but anything to shake up the carriers is welcome by me.


Rrrrright, because it's not like Microsoft has any experience running a large-scale network that supports realtime communications on a global scale like Xbox Live...

Oh, wait...

Reply Parent Score: 2

RE: Wireless telco?
by tyrione on Tue 10th May 2011 13:26 in reply to "Wireless telco?"
tyrione Member since:
2005-11-21

With Skype, Microsoft could, in theory, set itself up as a whole mobile network operator in a position to compete with the established players.

It already has the ISP infrastructure from MSN in place (the ISP not the messenger app). So it would simply be a case of developing/buying mobile data coverage (no need for 'voice' infrastructure).

One 4g licence and they could undercut the UK mobile operators in terms of cost of calls.

4g licence(s) are going on sale here in 2012 and expected to sell for much less than 3g did. The current estimates are that 4G will cover 95% of the UK

Would certainly turn the status quo on its head here...



How do you figure? They own ZERO Wireless or Wired Backbone.

Reply Parent Score: 2

RE[2]: Wireless telco?
by Adurbe on Tue 10th May 2011 15:25 in reply to "RE: Wireless telco?"
Adurbe Member since:
2005-07-06

If they purchase part of the 4G network, thats going on sale, they Will own the rights to use that in the same was as current wireless telcos do. This at a swipe would give them data coverage over 95% of the UK (official estimate).

Calls/sms/MMS all using the skype/internet protocols over their data network. Why would they need the wired network?

Their expirience as an ISP would doubtless be an asset in managing these data networks. Its a question of if they can be cheap enough to make people switch.

Dont get me wrong, we are prob talking a couple more billion of investment, but this is certainly achievable if they were so inclined and would open up a whole new market to Microsoft.

Reply Parent Score: 2