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Microsoft To Offer Free Wireless VoIP

Strudelkugel writes "The Business Online reports: MICROSOFT has developed a Skype-style free internet voice service for mobile phones that City analysts believe could wipe billions off the market value of operators such as Vodafone.The service is included in a mobile version of Microsoft Office Communicator due to be released this year. It will take the form of a voice-over internet protocol (VoIP) application that allows Office users to make free voice calls over wi-fi enabled phones running Windows Mobile software. Microsoft chief executive Steve Ballmer dropped his bombshell at the mobile operators' annual 3GSM show in Barcelona last week. The significance of his remarks was missed because of his effusive and eccentric delivery..." That is huge; I would hope to see the same thing coming out on the Symbian and other devices. The hard part will be getting these to market; since almost all mobile phones are sold thru the mobile telcom companies.

38 of 208 comments (clear)

  1. Anti-competitive? by ilitirit · · Score: 5, Insightful

    Bundling free services with Microsoft products? I smell a lawsuit.

    1. Re:Anti-competitive? by TheNetAvenger · · Score: 2, Interesting

      Well I'm thinking of the MS strategy here, whos to stop them from charging in the future?

      Customers, competition... Just becuase it is a new model, don't mean it won't be successful for others as well.

      Besides, we all knew it was going to get to this point eventually. Phone would be like Cable, pay flat fee, and watch as much TV as you want. It has been getting closer and closer, and with technology easing the bandwidth and traffic problems of the past, should be a normal thing.

      Besides, A) Microsoft wants to sell Windows Based devices & B) Maybe they realize it will actually help or improve the consumer market at the same time it helps them. What is wrong with a win win, even if they lose money investing in the technology initially.

    2. Re:Anti-competitive? by OwlWhacker · · Score: 2, Informative

      That would only be true if they had a monopoly on mobile phones OS, which I doubt.

      No, it wouldn't.

      Microsoft has an operating system monopoly, and therefore most people use its operating system.

      If most people use its operating system, they're also likely to use any bundled services that come with it (as they're free), rather than paying extra to use similar services elsewhere.

      Microsoft is 'leveraging its monopoly'. That's what it always does.

      For example: If Microsoft wanted the proprietary WMP file format to become a major standard used by most audio/video distributors, it could bundle its media player with Windows. WMP is then made available to most people (as most people have Windows), and Microsoft's file format immediately becomes the biggest audio/video format - and Microsoft doesn't have to compete at all, just bundle a product. Leverage.

  2. the hard part? by ChrisGilliard · · Score: 4, Interesting

    The hard part will be getting these to market; since almost all mobile phones are sold thru the mobile telcom companies.

    I think consumers will be willing to buy cell phones from anyone who can eliminate their costly cell phone bills. All Microsoft would have to do is work out a deal with Walmart or some other national chain and people will flock there if this is the real deal.

    --
    No Sigs!
  3. Hmm by $exyNerdie · · Score: 5, Insightful

    "...could wipe billions off the market value of operators such as Vodafone"

    Only if free wi-fi is available everywhere where Vodafone signal is...

    1. Re:Hmm by dodobh · · Score: 4, Informative
      --
      I can throw myself at the ground, and miss.
  4. Microsoft are just as scared by Isomer · · Score: 5, Insightful

    Microsoft are just as scared of VoIP as the carriers, with Skype, Google Talk and everyone else jumping on the VoIP bandwagon, it's another application "space" that Microsoft haven't entered and therefore can't control. By releasing their own "Skype killer" it means that they can control how people use this service, and make sure that Microsoft products are the way to do it.

  5. Sounds Great by omegashenron · · Score: 5, Interesting

    As much as I hate microsoft, I think they are on a real winner with this one. If it ever makes it to the Australian market I'd sign up for it. I for one am sick to death of paying a $0.20 call connection fee + $0.60 per minute to use my mobile, perhaps this will force the telecommunications industry to adopt reasonable rates.

    --
    Excuses Are Like Assholes - Everybody's Got One
    1. Re:Sounds Great by shmlco · · Score: 2, Insightful
      "...perhaps this will force the telecommunications industry to adopt reasonable rates."

      Nah. It will just cause them to run out their tame congress-critters, who'll enact anti-VOIP legislation for the "good" of the consumer. Probably under the guise of VOIP being unable to do 911 emergency location services.

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    2. Re:Sounds Great by killjoe · · Score: 3, Informative

      You can do this now. If you have a windows based mobile phone you can use skype. You don't have to wait for MS to sell you something.

      All you need is a wifi spot.

      --
      evil is as evil does
  6. This should be interesting by ben_1432 · · Score: 5, Insightful

    Good on Microsoft for showing some initiative. Skype's great, and I pay to use it, but it does not have the impact (read marketing) MS can throw behind a product.

    Considering what an absolute rip-off cell calls are and have always been, I'm all for free wireless + voip.

    PS. I wonder if any telco ceo's are throwing chairs around :)

  7. Microsoft is the new IBM by Zork+the+Almighty · · Score: 4, Interesting

    As I read this article I couldn't help but think of the parallels between what Microsoft is doing with VOIP and what IBM did with the personal computer. VOIP is headed for 100% adoption now, and the telcos are in serious trouble. People are going to use free or cheap internet access points, and nobody is going to pay those outrageous rates for the cell phone infrastructure anymore.

    Thank you, Microsoft. You may still be evil, but you've done the world a favor by destroying the exploitative business model of an industry that is arguably more evil.

    --

    In Soviet America the banks rob you!
    1. Re:Microsoft is the new IBM by Zork+the+Almighty · · Score: 5, Funny

      I should add: "Please stab Hollywood in the back next!"

      --

      In Soviet America the banks rob you!
    2. Re:Microsoft is the new IBM by duffer_01 · · Score: 2, Interesting

      I doubt this means that the telcos are in serious trouble. First of all most telcos are already getting into VOIP so the majority of customers will stick with them. I think you also have to consider the fact that it would be fairly simply for the internet providers to throttle back the bandwidth of non-friendly (i.e. free) VOIP services to the point that it becomes unusable. This would be especially important for businesses. Almost like the mafia, either use our service or your VOIP gets it. ;-)

  8. Security Nightmare! by nagora · · Score: 2, Insightful
    Can you IMAGINE what a mess Microsoft will make of this. Time to block those ports...

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  9. Computing == Telecommmunications == Control by Sub+Zero+992 · · Score: 4, Insightful

    Convergence between small, portable computing devices and small, portable telephones has been occurring for years. Much of the technology is the same, much of the manufacturing is the same, the consumers are the same.

    The question is, how much control of our personal information, how much logging and protocolling, how centralized will this convergence become? I would really hate to see the day when most people are emailing, phoning, websurfing and otherwise communicating on a hardware and software platform which comes with user-distrust cryptographically enforced on a TPM module.

    --
    They who would give up an essential liberty for temporary security, deserve neither liberty or security - Ben Franklin
  10. It won't wipe billions off anything by DrXym · · Score: 5, Insightful
    3G internet costs a fortune to use (it's a total scam). I think Vodafone would actually be delighted if you were foolish enough to use VOIP over 3G. MS might make it "free" to call fellow MS Office licensees, but the internet access isn't free.

    The other possibility is that the phone has some kind of wi-fi capabilties that connects to a local wireless network. I'm sure that will be the first feature to be crippled when you buy your Vodafone / O2 / Orange / T-Mobile branded phone.

    But even assuming it weren't, how is this any different from what you can do with Skype now? I use my iPaq & Skype to make calls from hotels all the time. I too can call other Skype users for free, and landlines & mobiles. They don't have to buy MS Office or even be running Windows. The biggest problem with wi-fi access is that coverage spotty, potentially expensive, potentially illegal, and there is no roaming or moving at all. And you can kiss goodbye to your battery life. On top of that, workers are expected to be using a Microsoft enable phone with Microsoft Office.

    It all sounds like a pipe dream to me. Of course because MS is a huge gorilla they might be able to foist this on some networks, especially the concept of site wide coverage (i.e. it works anywhere on the company premises), but that's about it IMHO.

    1. Re:It won't wipe billions off anything by caffeination · · Score: 2, Insightful
      That, and the fact that there's nothing free about the service anyway. Those of you saying things like "a leaf out of Google's book" are way off. Google offers its services for free to all comers. This Microsoft thing is more analogous to the "free dvd" you get on a magazine - it's only free in that you can't quantify the mark-up of the price of what it comes with.

      And besides that:
      1. included in a mobile version of Microsoft Office Communicator
      2. allows Office users to make free voice calls
      3. phones running Windows Mobile software
      We are Microsoft. Your biological and technological distinctiveness will be added to our own. Resistance is futile
    2. Re:It won't wipe billions off anything by acid_zebra · · Score: 3, Informative

      "3G internet costs a fortune to use"

      that phase will not last long. Already here in the Netherlands I can get almost 100% coverage (granted, we're a small country) and my provider has contracts with most other European countries so I don't pay through the nose there.

      I pay something like 60-70 EUR a month for flat-fee UMTS access.

      --
      -- No Sig is a Good Sig
    3. Re:It won't wipe billions off anything by DrXym · · Score: 2, Interesting
      I use Vodafone in Ireland and the 3G service is IMHO a total ripoff. The price for WAP (internet) is 2 cents per kilobyte! Hence the reason that Vodafone would be laughing if you used their service for VOIP. On top of that they'll rape you if you ever roam on your phone, even on other Vodafone networks.

      Now this particular article refers to wi-fi so it's probably not 3G. But since Vodafone subsidize and customize their handsets you can virtually guarantee that no phone of theirs will support it, or if they do it will be crippled in some way. They are not alone to do this. All the major phone networks will cripple any feature which allows you to bypass their pricing structure.

      Therefore the only other possible way I can see this working is if you (an individual or a business) bought some special MS enabled, GSM phone handsets at full cost (since there would be no subsidy) and then set about to use it in wi-fi mode around the office (and equipped hotels, conf centers) and GSM mode elsewhere. This seems highly implausible to say the least. Wi-fi & VOIP isn't anywhere remotely as reliable or tolerant as a regular cell phone even when you're standing right beside the access point.

  11. definition: by lxs · · Score: 4, Funny

    ...from the Microsoft internal dictionary:

    Innovation (noun) The act of poorly imitating the most hyped current technology and passing it off as your own.

  12. Skype... what Skype? by lastberserker · · Score: 2, Insightful

    Thanks to their deplorable deal with Intel they are off my memory page for good.

    --
    My other Beowulf cluster is... er...
  13. Telco's are still running the show though by Tenk101 · · Score: 3, Informative


    I'm all for this, but at least where I live in the UK most public WAPss are control by telephone companies like BT or T-Mobile, this even includes WAPss that you find in hotels etc.. It would definately be good at home and at work but I think less good on the move unless a bunch more WiFi operators start up and get seriously comptetive.

    As it is, I only really use public WAPs when I really need something because they also charge very high rates for short sessions like an hour. The only way to get better rates on the public WAPs is to subscribe to a telco operated service then you end up full circle.

  14. Service and Phone separated in Europe by madsen · · Score: 5, Informative
    The hard part will be getting these to market; since almost all mobile phones are sold thru the mobile telcom companies.
    In the states perhaps. In Europe it's very common that you buy your phones unlockled. Here in Finland it's even illegal to sell a phone with the service included, they have to be sold separately, without connection.
  15. Unlicensed Mobile Access by Diomidis+Spinellis · · Score: 2, Interesting

    Mobile operators are also moving in the same direction with the unlicensed mobile access (UMA) technology. With UMA you'll be able to make calls with your mobile phone through a Wi-Fi network. The operators know that this will eat into their wireless revenue stream, but they hope to recover the losses from a higher usage (you'll be using your mobile phone at home). So the real question is the choice between Microsoft's (nonstandard?) VoIP version and UMA.

    1. Re:Unlicensed Mobile Access by Raindeer · · Score: 2, Insightful
      So the real question is the choice between Microsoft's (nonstandard?) VoIP version and UMA.


      Sorry mate, the question is, whether it will be SIP over 3G broadband mobile phones or just GSM over wifi (UMA). Now, my bet is on the first one, because it is simpler and judging past behaviours of mobile telco's... cheaper.

  16. Re:Serves them right... by Alioth · · Score: 2, Insightful

    1 kilobyte? Try 160 bytes. If you send a short response to someone, you can be paying pennies per _bit_.

  17. Skype has that by Britz · · Score: 4, Informative

    Isn't that exactly what Skype has been offering for almost 2 years now with Skype for Pocket PC?

    http://www.skype.com/products/skype/pocketpc/

  18. Very good point. by Andy+Dodd · · Score: 5, Informative

    Free, RELIABLE wi-fi is not available in nearly as many areas in the U.S. as even T-Mobile cell phone coverage. (Note: T-Mobile's coverage SUCKS. They still have far greater and more reliable coverage than free or even paid Wi-Fi.)

    Also note that 802.11's channel access scheme is not well suited to transferring many small packets at low latency, which is required for VoIP. The end result is that even an 802.11g access point at full rate (54 Mbps) has trouble matching even a 1.544 Mbps T1 line in terms of VoIP capacity, *even with voice compression*. This is because the capacity limit turns out to be not the raw bitrate, but the number of *packets* per second that the system is able to handle. Small packets and 802.11 just don't mix for a number of reasons. For bulk data, there are packet bursting extensions to 802.11 that help a lot (Part of SuperG for example, and I think Broadcom's equivalent to SuperG also does bursting), but packet bursting introduces too much latency and variation in latency for VoIP.

    There was a good analysis of 802.11 capacity for SIP-based VoIP somewhere, I can't remember where. Note that IAX trunks would get MUCH better capacity in this situation, but this only helps for actual trunk connections (for example, trunking across a long-range cantenna-based 11g link), not when each user has a different device connected to the AP.

    --
    retrorocket.o not found, launch anyway?
  19. Re:Free? by Bandit0013 · · Score: 2, Insightful

    Like how you have to buy a laptop to use a free wifi spot?

  20. Too many politics by porkThreeWays · · Score: 3, Interesting

    Do we really need "cell phones" anymore these days? It's hard to believe we are still doing things like this. Here's what we should have in 2006...

    Gone is the idea of the "phone". You make phone calls via a softphone on your iPaq or Zaurus type mobile device. You have a handheld computer with a softphone. Instead of the idea of connecting to a cellular phone network, you pay a monthly flat fee and get a 1 megabit EVDO pipe to your phone and home computer. You pay your VoIP provider for minutes and your cellular network provider for internet access.

    The ONLY reason we don't do things like that is because cell companies have so much control. They make a crapload of money scamming us and aren't going to give it up anytime soon. Cell phone networks are of the few networks left you actually pay on a per byte basis. There's no technical reason for them to do it. They just know there are few players in that market and can get away with it.

    All it would really take is an internet service provider to get the balls and team up with a cable TV and VoIP provider. Provide fiber to the home for TV, phone, and internet. Set up a 3G cell network with EVDO for mobile internet access. Sell iPaq's with a softphone. They could make a KILLING. I'm willing to bet most of middle class America would pay 200-300 dollars a month FLAT FEE to get all their voice, tv, and internet from one provider that they can use anywhere (when in reality, it's just providing internet with other services on top of it).

    Sadly though, if someone's going to invest in a cellular network, they probably want to be in the raquet too and aren't going to provide all that.

    --
    If an officer ever threatens to taze you, say you have a pacemaker.
  21. Problems by unoengborg · · Score: 2, Interesting

    This is great if you live in a big city with lots of WiFi hotspots, but I doubt Microsoft will provide the infrastructure to make it work in the coutryside. This would mean that these people would have to rely on traditional cell phone service providers. The cost for these people would probably go up drastically if Microsoft grabs all the customers in more profitable areas.

    There are also other issues, e.g. in many countries emergency calls needs to be tracable so that help can be sent even if the caller doesn't know where he is or is too badly injured to tell. Will Microsoft be able to provide this?

    --
    God is REAL! Unless explicitly declared INTEGER
  22. Probably Going Nowhere by ajs318 · · Score: 4, Insightful

    The thing is that unless this service is based upon open protocols and standards, it will be doomed to failure. How many electricity companies do you know who make money by selling you 72 volts, 16.6667Hz {well, that's what they say it is, but you aren't allowed to measure it} from weirdy sockets with different-shaped pins, and selling the special appliances to go with it possibly at a loss?

    Telephones only took off because of compatibility. POTS networks are all similar enough that you can be fairly sure that a phone or modem will work anywhere in the world, if you can only find the correct plug to fit the weirdy sockets you are likely to encounter on your travels {hint: two crocodile clips and a multi-tool [please let's not start a Gerber v. Leatherman flame war here; the Gerber must be better, because all cheap knock-offs are based on the Leatherman] are as good as anything}.

    A VoIP client is only any good if it is compatible with existing standards -- or if it can reasonably be reverse-engineered.

    --
    Je fume. Tu fumes. Nous fûmes!
  23. Over hyped much? by the-stringbean · · Score: 2, Informative
    ...City analysts believe could wipe billions off the market value of operators such as Vodafone.

    Right... just like the PocketPC version of Skype did... this stuff only works reliably (well.. kinda...) over WiFi which limits you to your home, internet cafes, random unsecured WiFi points (not that I condone wardriving or any other illegal use of other peoples access points) and (for those who are lucky) WiFi enabled metropolitan areas. Now where is it that most people use there mobile phones? I think you'll find that the majority of calls are made where there is no WiFi connectivity. I know that most of the time I'm away from an access point, and yes I do have a Windows Mobile PocketPC Edition device that has Skype on it.

    I'm not too sure on the business model that the US mobile operators use but in the UK a large chunk of the revenue comes from line rental with most calls being made with inclusive minutes (there are 'Pay as you Go' plans but I've yet to find a PocketPC phone on these plans yet). Mobile operators aren't going to give a monkey's if you use Skype or your free minutes, they already have your money. The only real threat is from the PocketPC PDAs (the non-phone ones) that aren't linked to a mobile network and generate no revenue for mobile operators.

    And as a side note - last time I checked Vodafone don't sell any Windows Mobile powered devices (at least in the UK) so they aren't really going to be affected by this unless everyone jumps ship to another operator.

    1. Re:Over hyped much? by 16K+Ram+Pack · · Score: 2, Insightful
      Exactly. I pay about £30 a month, and get as many free calls as I normally use.

      The alternative is to have a basic rental (say £15/month) and then have to have a separate wifi account and be switching around based on whether I can get a wifi signal with a network that I signed up for £20+/month. Bear in mind that often, I'm not near wifi and need to make a call.

      It's not a big enough saving to make it worth it.

      The interesting thing is whether wifi will even survive. 3G cards are coming down in price, and are now at a point where they may cost a little more (45+VAT vs 23 inc VAT) the convenience may soon start to outweigh the savings.

  24. Clippy on my phone? by twmcneil · · Score: 3, Funny

    I can't wait.

    --
    "The ferrets, they're every where I tell you!"
  25. and what about the batteries? by gyepi · · Score: 2, Interesting

    The energy consumption of wifi is roughly 3-4 times more, that means that if you decide to manage most of your talks through the wifi connection, your batteries will last for a significanly shorter time. Today the battery is already the biggest part of your mobile phone, so unless there will be a huge breakthrough in the ways we store energy, there is another reason to think (besides those that others mentioned above) that wifi-enabled phones won't completely replace regular ones.

    --
    Attitudes make the difference between Space and Time: we want to MAX our temporal, and MIN our spatial extension.
  26. It's weak, but here's how by Dr.+Evil · · Score: 3, Informative

    MS Communicator enters Microsoft into two areas:

    • VOIP
    • Corporate Instant Messaging and Collaboration

    The integration only works on MS OSes and in MS Office of course.

    Microsoft recently announced that they're going into the corporate mobile email business, competing with RIM.

    Microsoft announced that their mobile OS will support free wireless VOIP.

    So... the year is 2008. You fire up your new workplace computer, it comes up with MS Communicator. You can add all your buddies from your IM lists, and you can add all their cell phones for texting. You can also access your corporate email.

    Now you're looking at your cell phone plan and thinking "I sure wish I had a MS mobile phone so that I could use all these features from my cell phone. Free calling, corporate IM, corporate email integration... etc."

    That's how MS uses their OS monopoly to extend into the cellular market, entrench their corporate email solution, deepen their penetration of MS Office, while providing people the first reason to upgrade since Office 97.

    (BTW, I HATE real-time collaboration.)