Skype Alerts Local Mobile Carriers

Reference: http://www.koreatimes.co.kr/www/news/biz/2008/06/123_25962.html


OECD Ministers Discuss Future of Internet Economy in Two-Day Seoul MeetingBy Tim Alper Contributing Writer Ahead of the opening of the OECD ministers' meeting on the subject of digital economy, Internet phone operator Skype disclosed its plan Monday to offer unlimited free calls to mobile phone users in Korea, a move that can change the pecking order of the Korean telecom market. The American-owned Internet venture said it looks set to force its way into the Korean market, threatening local telecom operators such as SK Telecom, KTF and LG Telecom. The two-day meeting, the biggest of its kind, opens today with 42 ministers from 37 countries and 41 prominent members from private sectors participating. Toyota CEO Katsuaki Watanabe and France Telecom Babara Dalibard are among them. Skype's CEO Josh Silverman is visiting Seoul for the meeting to be held Tuesday and Wednesday. He said Korea was a ``wonderful market'' for his company. ``When customers buy a handset or sign up to a service, they have the right to run whatever applications they like. We will be working together with governments and carriers, but we believe what you choose to do with your own mobile phone is up to you.'' Skype was started up by a group of software experts in Estonia, but has seen its popularity skyrocket in a short time. It was snapped up by eBay, owner of Korean site Auction, in 2005, so they have natural partners in Korea. It has been working closely with Korea's Internet Auction Company (IAC) as it looks to break into the Korean market. IAC's Director, Beh Dong-chol, said, ``By next month, we will be offering competitive Skype-related products in Korea. We expect a lot more Koreans to start using Skype.'' Skype is an Internet program that allows users to make free voice and video calls between computers over the net, using standard headsets and webcams. However, as mobile phones evolve to incorporate full wireless Internet functions, Skype is starting to take advantage, as it offers mobile users the ability to make free calls to the phones of other Skype members. The move should set alarm bells ringing at Korean mobile phone carriers KTF, SKT and LG Telecom, who have long exercised a stranglehold on the Korean market. It is thought the Korean mobile giants will not welcome this sudden intrusion into their market by a foreign company. The new software could put a dent in their profits by eliminating the need for users to pay call charges if both parties are using Skype-enabled mobiles. However, it has not all been plain sailing for Skype of late. eBay boss John Donahoe was recently quoted as saying his company would be ``reassessing'' its interests in Skype at the end of 2008, but Silverman yesterday refuted the idea that eBay was anything other than 100 percent behind his company. He said, ``eBay has been very supportive. They have invested a lot of money into Skype, and my mandate as CEO is clear.''