A 3 Skypephone for Christmas, for $0

Stuart Corner
Tuesday, 30 October 2007 11:20

Your IT - Home IT

Although 3 was first in Australia with 3G it is the newest and still the smallest, and has amply demonstrated in the past a penchant for disrupting the status quo. In Australia 3 lead with capped plans, since enthusiastically embraced by all operators, and has consistently been the price leader in driving down broadband prices. And its X-Series initiative was a first in offering Internet access for mobiles without usage-inhibiting data charges. If the 3 Skypephone sets a similar precedent, it will indeed by a watershed development.

Delaney ranked the phone, Skype aside, as a reasonably competitive product. "It doesn't look or feel cheap: it has a slim, elegant design, it's nicely finished and it has a pretty good spec for its price point, including a 2 megapixel camera. In combination with the promise of 'free phone calls', it's likely to get at least a second look from customers who haven't necessarily set their hearts on the latest from Nokia or Samsung."

Gartner UK analyst, Jason Chapman, agreed: "For a 3G product, this is good value and the inclusion of free Skype-to-Skype calling is attractive. For those who use Skype, it is a real differentiator in a market that is heavily price dependant. It is a good move for brand positioning, for both Skype moving into mobile (which could do with a boost following the eBay write-down) and 3 which needs to improve margins and continue to position itself as a media company rather than a traditional telco."

However, looking further ahead Ovum's Delaney was not so sure that the move would enhance 3's media ambitions. "In the short term, 3 may be able to use the Skype phone effectively to boost its subscriber numbers. In the long term, though, if 3 is successful with the Skype phone, the X-Series and similar projects, it might end up creating its own strategic problems. Imagine the scenario: on your mobile phone you use Skype for phone calls, Hotmail for messaging, Google for search and directions, YouTube for TV and music. What do you need your mobile operator for? The answer could turn out to be: subsidising phones, carrying data packets, and dealing with problems & complaints. Does that add up to an attractive business?"