Is Skype and Yahoo launching a mobile network?

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By Douglas A. McIntyre Published
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From Internet Oursider

This Business Week article speculates that Skype may partner with Yahoo to develop a mobile network using the 700Mhz spectrum, it says "industry insiders see Skype rolling out its own mobile network, possibly in cahoots with Yahoo."

I imagine this type of network would be a hybrid 3G/Wifi/VOIP network.  Skype could combine its enormous VOIP user base and with Yahoo Messenger’s large instant messenger user base to up-sell wireless phone and broadband service. They could effectively bypass the broadband providers to connect directly to some of their end users.

Yahoo typically tries to be a neutral force with its partners but this development would put it in direct competition with its broadband partners.  How would Yahoo’s broadband partners would feel about Yahoo bypassing their networks and offering a competitive service?  Maybe Yahoo would make this move because they think their broadband partnership contracts are at risk?  Maybe they would do it because they could partially insulate themselves from the network neutrality quality of service issue. 

The partnerships continue to get even more confusing.  Google and Earthlink have joined forced to launch municipal wifi networks.  Meanwhile, Microsoft and Yahoo announced an instant messenger interoperability partnership in October 2005 and then Google and AOL announced a similar partnership in December 2005 (will these partnerships ever launch?).  I continue to believe that the IM and VOIP clients are one in the same. 

This puts Skype is in a strong negotiating position.  Skype has remained uncommitted to the YHOO/MSFT camp or the GOOG/AOL camp.  If Skype chooses to work with Yahoo on this project, it effectively aligns with Yahoo and Microsoft and deepens its relationship with Yahoo.  Their existing partnership already agrees that Yahoo will sell Ebay inventory, Yahoo will use PayPal, and Ebay will include Yahoo features in its toolbar.  In addition, Yahoo Messenger and Skype already have a partnership to work on ‘click-to-call’ functionality. 

I think Ebay should use its negotiating leverage to win additional concession from Yahoo.  I would like to see Ebay’s listings featured more prominently on Yahoo’s search. 

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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