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Swedish Teleco Firms Looking Into Block VoIP Claiming Losses In Earnings

An anonymous reader writes "Telia, a Swedish telecommunications company, is now looking into possible solutions to block free VoIP services like Skype and Vibr, claiming the losses are beginning to take its toll on the total earnings. Critics are saying the companies have wrongly implemented outdated pricing models, and the act could threaten net transparency and Independence. A new report from regulators of the European phone market shows that more and more telecommunications companies will block their subscribers from using free services. The European Commission is investigating whether it is possible to prohibit the blocking of legal services online."

11 of 151 comments (clear)

  1. What the heck? by Anonymous Coward · · Score: 5, Insightful

    Why is it that when companies managed to reach a nice cushioned position they complain when the rules of the game change? this does not make sense to me.
    You had all this time to profit and INNOVATE. Why not start your own VOIP service? instead, like some retarded dictator you want to block progress.

    Innovate or die.

    1. Re:What the heck? by Hentes · · Score: 5, Insightful

      On one hand it's understandable that after giving their users nearly unlimited mobile net they feel tricked when noone is paying them for phone calls anymore. On the other hand if it's cheaper to make phone calls over Skype than it is in the traditional way that means that phone calls are hugely overpriced because Skype has strong security and much better sound quality than a phone call. In any case, they should have seen this coming and plan forward, transforming from telcos to mobile net companies.

    2. Re:What the heck? by Ihmhi · · Score: 4, Interesting

      The biggest rumor about Skype is that there's an NSA/insert-government-here backdoor that lets them listen in on your Skype calls.

      That already exists in every modern phone and has for decades now, so you're not really losing anything in that respect. You are, however, gaining much better call quality for a fraction of the price.

    3. Re:What the heck? by Joce640k · · Score: 4, Informative

      It's like this:

      In Europe most of us have flat-rate data for like, $10 a month. Some companies drop the speed after X megabytes but essentially there's no limits.

      Using VOIP we can talk 24/7 for the entire month for only $10. This makes it very popular, especially among foreigners who call home a lot.

      It's also very understandable that it makes the phone companies unhappy. They just gave you an Android smartphone for signing up, you're using their networks to make calls and they're only making $120 per year out of it.

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    4. Re:What the heck? by Joce640k · · Score: 4, Informative

      It may not be 100% secure but it's enough that even the NSA hasn't got the power to do mass snooping. They'll have to pick and choose who they can afford to dedicate computing time to. ...and it's unlikely that it will be DES these days. AES is no harder for a programmer to implement.

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      No sig today...
    5. Re:What the heck? by spxZA · · Score: 5, Informative

      Once a year I do some calculations, to figure out which is cheaper for me: a data-only mobile contract and Skype; or a voice contract.
      Skype claims that a skype-to-skype call is at 3MB/min, while a skype-to-landline/mobile is at 1MB/min. Considering that most of the calls that are make are to people that don't have skype, I'll use the latter figure.
      I sometimes use up to 400 minutes, or less (no carry-over, which is illegal, but we are too scared to fight this). So 350 minutes equates to 350MB skype-to-skype calls. Let's call it 400MB including presence, contact information. I use around 350MB/month when away from my wifi networks. The most applicable data bundle is 1GB, at ZAR290. An "unlimited" package goes for 10x this amount. So, I'll be paying around ZAR320/month for the contract, including their lovely add-ons they always manage to squeeze in.
      Next is the cost of skype. If i choose the pay-per-minute option, I'll be paying ZAR0.177/minute, or roughly ZAR61.95/month. This brings my total monthly bill to ZAR381.95, rounding up for the unexpected - ZAR400/month.
      I pay ZAR350 for 350 minutes per month, plus a few other items (promotion fee (WTF is that???), itemized statement). The cost of the phone is included in all of that. Assuming I don't go over any of my bundles (350 minutes, 100 sms, 350 GB), then I pay ZAR637/month. And yes, I do often go over my bundles.
      So, a data-only contract (it's not data only, but rather the only bundle is data. Voice calls are paid at full rates - ZAR2.85) is 75% of a voice contract. Plus, i pay the same for local calls as I do for international calls when done through skype. ZAR400 vs ZAR637 is a massive difference, making it well-worth it. If I choose the skype route, I end up paying my mobile operator ~ZAR340/month instead of ~ZAR640/month. They will lose out ZAR300/month - or ZAR7,000 over a 24 month contract period.
      If I was a mobile operator, I would hate to lose half of my income from a number of my users. But, that's what they get for bending us over the coals, pulling down our pants, and...well...this is a family show. I've used the most expensive skype option, so the prices for monthly or annual subscriptions would only drop.
      The only issue is that of battery consumption of skype, and coverage. I spend 99.9% of my time in urban areas with semi-decent data coverage. For the times when I'm in rural/low coverage areas, then I would pay out my of ass to do voice calls. But I'm not too worried about that.
      So my point is, yes mobile operators are losing money to VOIP. Yes, they can do something about that. But, they have been dropping their prices in recent years due to consumer demand and dissatisfaction, so they are losing "potential" revenue regardless. I say stick it to "the man" until we collapse the economy with all these work-arounds.

  2. We fixed this in NL by Anonymous Coward · · Score: 5, Informative

    In the Netherlands, the largest telco (KPN) was also going to do this... then parliament rushed through a net neutrality law that forbids deep packet inspection and blocking specific traffic and the telcos backed off quickly. Now they can only charge by amount of data and speed. Maybe the Swedish will get lucky too now.

  3. Also in Finland by Gaygirlie · · Score: 4, Informative

    TeliaSonera is a telco that actually operates both in Finland and in Sweden, and they're planning to block people from using Skype for free on the Finnish side of things, too. Their plan is to allow you to buy Skype talk-time that then allows the service through until the time is up. Do notice that this is in *addition* to what one already has to pay for Skype credits, so this has understandably created quite some negative commentary here and there.

    The funny thing is that it's only TeliaSonera contemplating on doing this, all the others are more than fine with the situation as it is, and are even actively promoting unrestricted mobile broadbands.

  4. Re:Why prohibit? by Anonymous Coward · · Score: 4, Insightful

    You seems to think that the telecommunication industry is a free market. It is not. It provides vital infrastructure which means that it's, and should be, heavily subsidized and regulated.

  5. Re:Not yet... by pieterbos · · Score: 4, Informative

    Regardless of the law being accepted or not, the combination of the resistance amongst the public and the politicians agains the telco plans and the proposal of this law had a significant effect: the telco's withdrew their plans. And they are slowly switching to a different pricing model, where data is the main component. And in one case, already the new phone subsidy has changed into a phone lease, for which you pay separately if you want it.

    This does mean that the price of data becomes a significant amount of the price of your monthly phone bill. It doesn't magically mean that data is now free and unlimited, and not even that things like price differences within and outside of your data limit will disappear. You will not suddenly pay less in all cases, telephone companies still need to make money. But it does force them into a more fair pricing plan.

  6. Re:NOTHING WORSE THAN ANGRY SWEDES !! by Zontar+The+Mindless · · Score: 4, Insightful

    Not really angry, more like depressed. The winters are long, cold, and dark.

    It is not helped by the fact that Swedes are notoriously uncommitted in their relationships, resulting in one of the highest, if not the highest percentage of 1-person households and single-parent families on the planet. Stockholm is littered with foreigners who married Swedes, moved here, then got dumped a few years later ("Ah well, this is our third argument this year, it's too much trouble to work out, I'm just divorcing you instead"--I shit you not, this actually happened to a friend of mine) and they wind up staying on so they can see their kids. And many of these ex-pats seem to spend most of their time, when not at work or visiting the kids, getting drunk and/or drug-fucked.

    Don't get me wrong, I've lived here for nearly 5 years. As a resident and as a worker, I've been treated extremely well, and I'm very grateful for this. But I am really glad I met someone who's also not from here, instead of trying to hook up with a Swedish girl.

    And it can be a beautiful country (especially in the summer, when it never really gets dark), and some Swedes are actually quite warm and friendly. But it's also true that about 20% of my neighbours in this building are single, live alone, don't go out much, and seem to have few if any visitors.

    It's a bit sad. And if you are at all prone to depression, it can be a real struggle to make it through the winter here. This comes from one who knows all too well.

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