AT&T caved on Voice over Cell. 12 Attacks To Come?

AT&T loathes Skype. Skype costs them international calling money and changes consumer expectations in ways mobile carriers cannot respond. So AT&T forbid Apple to permit Skype voice calls over the wireless network. It worked for two years. Now that barrier is down, how else can they slow or stop Skype? To bring a humble Skype to the negotiation table? Three anticompetitive strategies:

The Parity Strategy: Get government to treat Skype like a fat incumbent landline phone company.

• e911. Emergency dialing is expensive, unreliable with softphones like Skype, and different in every country. Skype says it is not a phone company, so the US FCC should not require Skype to offer emergency dialing. The incumbents would love to saddle Skype with this requirement.
• Assistance to the Hearing Impaired. Require Skype to offer interpreters for the deaf.
• Skype and US, State and Local Phone Taxes. Lobby for Skype to collect federal, state and local value added taxes and fees. Blur the distinction between Skype and phone companies. Complicate Skype's prices and products.
• Metro/State/Provincial Regulation. Encourage non-Federal governments and agencies to entangle Skype in hearings, compliance procedures.
• Administrivia. Phone companies file detailed reports with state and federal regulators. In triplicate. Ask local agencies to swamp Skype with requests for information.

Attack Skype's Brand.

• Pollute Skype's Security Brand. Skype has a reputation for being very secure, relatively spam free, and a safe way to communicate. Invest in academic challenges to Skype security. Publicize every stalker, lawsuit and robocaller. Host "ethical hacker" contests and spread the results.
• The Weapon of Evildoers. "Criminals and terrorists use Skype." Host conferences for police and intelligence agencies on threats posed by Skype. Urge them to compel Skype to give up encryption. Force Skype to rebut law and order politicians.
• Reframe Net Neutrality. Net neutrality improves Skype user access to networks. Supporters of net neutrality use language like freedom and choice. Instead, blame Skype for slow pipes, limited coverage and congested bandwidth.
• Not Invented Here. "Buy American," don't give your hard earned money to that foreign phone empire. A little astroturf goes a long way.

Divide and Conquer.

• Sponsor Class Action Suits. Pit dissatisfied customers against Skype. Force Skype to invest in lawyers, not engineers.
• Start the Skype-Killer Adventure Fund. Confuse Skype's customers with a market full of Skype clones. Pay peanuts to attract entrepreneurial talent to your war on Skype.
• Raid Skype Talent. Half of Skype's employees are paid Eastern European wages. Aggressively recruit them, stalling Skype's projects.
• Repeat Worldwide. Share with telcos in every market a template for attacking Skype. Make Skype struggle in every country.

tags: skype, competition, att, at&t

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illustration: LuMaxArt