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

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:

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