The Telco Skype Killer?

AT&T, in cahoots with 10 to 15 other incumbent carriers including BT, Deutsche Telecom, and NTT, is allegedly planning to launch a Skype killer. GigaOm [1] is placing good stock in a ThinkEquity research report making the prediction, ThinkEquity previously augured Cisco would buy Scientific Atlanta.

Incumbents would to offer a VoIP client that will work on incumbent broadband and 3G wireless pipes, using a backend to allow people to make free phone calls to anyone logged into it, similar to AIM, Yahoo, MSN, and Google.

Calls from client-to-client would be free, and the backend platform would keep “calls” (data streams) from the participating carriers free. Termination charges would be avoiding, but each carrier could still make money when calls S****-Out to a rival’s phone or wireless network. A common platform and client means everyone gains in lower support costs and simplicity, rather than having 15 different standards.

Maybe another way to think of this is this would be the VSTN (VoIP standard telephone network) to the PSTN.

Anyway, the crystal ball says Skype-Killer will be launched in 2009, run on broadband connections and on top of 3G/4G wireless connections (which are, after all, broadband), extended to other mobile phones eventually, and be used as a hook to sell other services such as video.

Why are telcos prepared to eat their own young, so to speak? Voice is a losing proposition and they continue to lose fixed-line customers at a rapid clip. Providing VSTN gives them a way to retain customers, rather than letting them skip off to cable, an independent VoIP service, or a rival’s wireless service.

For more:
- Read the GigaOm post on the Telecom Skype Killer [2]

Related articles:
Skype's international unlimited plan [3]
Skype's vision for next 10 years [4]