“Conspiracy of silence” surrounds Canadian Skype’s absence from iPhone

It was big news last month that Skype would not be available for the iPhone in Canada, then the story disappeared into sea of complacency – something one analyst refers to as “a conspiracy of silence”. “I think that all the parties that are involved – Rogers Communications Inc., Apple Corp., Skype – made a statement about it, that would clarify things,” Warren Shiau, a technology analyst at Strategic Counsel in Toronto, tells Report on Wireless. “There is such a thing as a conspiracy of silence.” Rumours are swirling of a patent conflict and/or issue of Enhanced 911 (E911) termination for VoIP calls. When contacted by RoW, Aziza Johnson, a senior account manager for Skype would only say that “There is a vague restriction in one of the standards-based technology licences, and we are looking into it. The issue is not related to Apple, nor is it specific to Skype.” The buzz around last month’s “mesh” conference at the MaRS Collaboration Centre in downtown Toronto was that it was an E911 issue, a theory that has some traction with analysts. Although Skype terms explicitly say that you should not make 911 calls, it remains an issue that Skype cannot locate the position of the caller. “E911 is an issue, certainly,” says Iain Grant, managing director SeaBoard Group. “But the attitude of Rogers will certainly be negative.” A spokesperson for Rogers has been reported as saying that the company has made no effort to stop Skype users, provided they can get access. This is kind of like saying the front door is locked, but if you go around back you won’t get charged for trespassing. “Fring and Truephone are examples ,” says Grant. “I don't think that even the might of Rogers is enough to turn the tide.” You can download Fring from Apple’s iTunes store for free, but it isn’t being touted by Rogers. Another option is IM+ for Skype on the BlackBerry, iPhone, or a Windows mobile device. An official “light” version of the Skype service for BlackBerry is supposed to be out this month, but it will be limited to updates and text messaging. The reason? Regulatory issues, which could be code for E911. Meanwhile, despite Skype access to the iPhone in the United States, groups south of the border are insisting that AT&T open up Skype to its cellular network, and not just Wi-Fi access. Chris Riley, policy counsel at Free Press, a US-based non-profit and open-Internet advocacy group, has said that “it seems very likely” that it is the carrier that is blocking full Skype service. In Canada, however, silence reigns. “The carrier can do basically anything,” says Shiau. “However you access the phone will be controlled by the carrier.” Things in Canada might not change until we get to LTE: that’s when the big carriers will have to confront VoIP head-on on the data side. “LTE is Wi-Fi and high speed supported,” says Jon Arnold of J Arnold & Associates. “Once we move totally into data-based mobile networks and we don’t have voice-based networks – at that point there will be no way to prevent it. It will be a natural evolution.” Meanwhile, approximately 10% of all owners of an iPhone or iPod Touch have downloaded the application that allows them to run Skype, according to eBay Inc. chief executive John Donahoe. Within 24 hours of its launch the Skype program was the largest application on the iPhone in 40 countries – excluding Canada, of course. Donahoe is talking up Skype for a reason. He has said that a valuation of $2 billion would be too low, which might mean that the much ballyhooed sale of Skype by eBay will be delayed. The company paid $2.6 billion for Skype in 2005. Recent data suggest that Donahoe might be right to wait for better market conditions. Gartner Research has reported that 50% of mobile voice traffic will be carried using end-to-end VoIP by 2019, posing “a huge and direct challenge to the $692.6 billion global mobile voice market.”

“Conspiracy of silence” surrounds Canadian Skype’s absence from iPhone

News | 05/08/2009 5:08 pm EDT

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