Skype to invest in UM

[Przemolog]

The content of the today's UM newsflash which I received about half an hour ago.


Skype founding investor delivers major financial backing to
United Mobile

Morten Lund, a founding investor in global technology giant Skype, is investing in the international mobile network operator United Mobile.

"United Mobile has the solution we have all been waiting for – and the revenue I have been looking for" stated Morten Lund. He has a strong track record of successfully establishing and launching technologically innovative, financially profitable businesses in the internet and telephony industry.

Morten Lund is a firm advocate of United Mobile's business strategy of combining its services with so called Web 2.0 functionality. He commented: "The business rationale behind United Mobile's decision to integrate Web 2.0 features into its service offering is compelling. The organisation’s key objective is to transfer the Skype model to the mobile phone for average Joe who is travelling. United Mobile will deliver a combination of Truphone, Jajah and Skype on a "One SIM card Service". The company will be a leader in delivering free mobile telephony worldwide. This pioneering new business model will be widely adopted in the world's leading mobile markets in the near future."


Sven Donhuysen, CEO and President of United Mobile, commented: "It is a great endorsement for us to have a strategic investor with a track record like Morten on board. He is well connected and has a wealth of expertise of successful investment in the internet and mobile technology space."

[snaimon]

Received same msg. BUT.... what does it mean? How is Web 2.0 going to impact this and how are they going to make any money by offering FREE mobile telephony -- WORLDWIDE, nonetheless?

Would like to see some specifics.

I don't see how the can implement this innovation when they can't even live up to their current service promises (AU) and even deliver and receive SMS from US via SMSbug or T-mobile.

Stan

[Przemolog]

Originally Posted by snaimon

Received same msg. BUT.... what does it mean? How is Web 2.0 going to impact this and how are they going to make any money by offering FREE mobile telephony -- WORLDWIDE, nonetheless?

Would like to see some specifics.

I don't see how the can implement this innovation when they can't even live up to their current service promises (AU) and even deliver and receive SMS from US via SMSbug or T-mobile.

Web 2.0 is IMHO a kind of "marketing blah-blah-blah" - trendy phrase w/o strict definition to make impression of being modern and up-to-date .

But I think the real sense of the message is that they want to use to fast wireless data transfer (WiFi/3G) to offer "free" VoIP connections. Perhaps they "integrate" UM and Skype credits and, eg. you could pay from the same credit for a cheap SkypeOut connection while you are in the WiFi coverage or expensive GSM connection elsewhere... Just my speculations.

As to the service promises - I don't want to justify UM in any way but they are perfect to compare with Yackie or Callblue. And T-Mo US->UM blockade issue seems to be a T-Mo decision and I see no reason why to blame UM for it.

[bbob]

The only thing I read is that not skype is investing in UM but one of the investors that once invested in skype is now investing in UM.
The biggest problem for UM is their lichtenstein number. Calling lichtenstein is getting more and more of a problem and rates for calling lichtenstein numbers are getting more expensive day by day it seems.

I still have a UM number but hardly use it because of that reason. IOM seems to be a better alternative as you will get a normal +44 number.

I am wondering how this new investor will change the problem calling lichtenstein mobile at very high rates.

[prion]

Originally Posted by bbob

I am wondering how this new investor will change the problem calling lichtenstein mobile at very high rates.

The question is does he want to change it? Why should he do that since this is how the UM makes money (revenue)

[bbob]

Originally Posted by prion

The question is does he want to change it? Why should he do that since this is how the UM makes money (revenue)

Why do lots of people buy a roaming free card. Some for their family others are truck drivers and it becomes less interesting if they have to call an expensive lichtenstein mobile number.

On the other hand IOM card have a +44 number and still they also seem to make money.
As for UM part of their income will come from caling their number but just a small part. Carriers make the most profit.

[prion]

Originally Posted by bbob

As for UM part of their income will come from caling their number but just a small part. Carriers make the most profit.

This may be true for many cases but probably not for this. This is very expensive call and cannot easily be justified by an increase in call cost by carriers alone.

[bbob]

Ask yourself why would you choose a provider that offers no roaming for many countries.

As there are many type of customers all have different reasons.

Business customers do not care if someone need to call an expensive lichtenstein mobile number. On the other hand not too many business customers know of UM. Most true business customers have 1 GSM with a local carrier so they have great rates in their home country and they can be reached on 1 number.

Other customers are for personal use, going on holiday etc. These type of customers look after pricing and calling an expensive lichtenstein number is not very good.

There are more examples. I have both UM and IOM cell phone but as said UM will stop in some time because of the bad rates but more important some of my customers seem to be blocked by their local carrier and unable to call to UM numbers. Also some customers ask what funny number do you have. A +44 number just looks better and more serious.
UM will still have a great market but at the moment I see many disadvantages compared to IOM cards.
What this invester will change in that, no idea.

[prion]

You are right on your points. My point was only that UM is getting a good revenue from the increase of rates to call its network. Normally a carrier does not change the rate to a destination (at least not in such an extent) unless this is imposed by the destination

[GadgetKen]

This could be intriguing in terms of:
1) If they hooked Skype-In VOIP directly to the United Mobile/Mobilekom Liechtenstein switch, someone could call in to a less expensive(and possibly local) number in the UK, US, etc. United Mobile/Skype would profit from the charges for a Skype-In number.
2) Direct dial (callback without using Callback World,etc.) rates might be less because the long distance portion would be carried by cheaper VOIP Skype. Concern though is audio quality...VOIP connections not always the best.
3) If used with a GSM/Wifi handset, you could have cheaper WiFi VOIP when in range of a wifi site, and a single account (instead my seperate Skype and United Mobile accounts). Not sure about their free mobile telephony claim though unless it was wifi VOIP to another wifi handset.
4) Possibility of data services (GPRS, etc.) if they are going really high tech with VOIP anyway?
These are all guesses about what United Mobile might do, but hopefully they will implement some of this.