Skype on Nokia N97 invokes wrath of carriers

O2 and Orange are reportedly quite unhappy about Nokia's plans to bundle Skype onto its flagship N97 device. The two mobile carriers may not stock the N97 or any future N-series phone loaded with Skype, so either Skype goes, or the phone goes.

The report from Mobile Today says the fight is around ownership of the customer, as well as the potential lost revenue from calls routed through Skype rather than through the carrier. One operator is quoted as saying "‘This is another example of [Nokia] trying to build an ecosystem that is all about Nokia and reduces the operator to a dumb pipe...Nokia has tried several ways to own the customer over the years and operators have had to say no."

Other UK operators seem to be content to work with Skype, with T-Mobile offering its support for a Skype-loaded N97 and mobile carrier 3 already having a handset with a Skype client. An unnamed source defined Nokia's position and noted that 3 has done well by its Skype-loaded phone.

Mobile carriers are no doubt more than a little nervous at Skype's continued proliferation into what used to be a pristine space to make money before all this fancy data/client stuff appeared to cut into roaming and international calling profits. Not to mention all the high-profile lobbying Skype is doing to promote open networks and network neutrality.

On the other side of the coin, mobile VoIP players have to be unnerved that Skype continues to crunch into their space with a bigger brand and landing deals with Nokia and Sony Ericsson. Carriers and the mobile VoIP firms are likely to be conducting some backroom "The enemy-of-my-enemy" discussions if they can work out terms without cutting each other's throats in the process.

For more:
- MobileToday UK calls it. Post [1].