Free call provider Skype is looking anxiously over its shoulder at Apple's new FaceTime video-calling service, a company filing reveals.
Although Skype is available for the iPad, iPhone and iPod touch, Apple and mobile networks reserve the right to change the terms of inclusion in the app store. The company warns in an SEC filing, seen by Network World, that Apple and its carrier partners are capable of "effectively withdrawing this functionality at any time or develop[ing] competing applications, such as Apple FaceTime, that may better integrate with Apple devices."
The filing expressed concern over the development of FaceTime, despite Skype having already built functionality into its iPhone app to ensure it works with the iPhone 4's front-facing camera.
The new iPod touch, due out later this year, may also carry the ability to run FaceTime thanks to (what looks to be) a new front-facing camera, and functionality that uses Apple IDs rather than phone numbers to communicate.
Skype also has worries about Android, especially since network operators could effectively control whether its service was offered or not.
Then there's competition from companies such as Vonage, which now provides free voice over IP chat from your iPhone or Android mobile to Facebook friends all over the world.
"Application store owners have ultimate control over the products and services made available through their channels and may choose to remove Skype from their stores or restrict functionality based on perceived competitive threat or cannibalisation of their own products," says Skype.
Skype knows mobile services are a vital part of its future but already sees problems ahead in dealing with network operators, who aren't known for their goodwill when it comes to any threat to profit margins.
While video calling has largely been thought of as a distant pipe dream, Apple has certainly devoted some energy towards it, which is manifest in the iPhone 4. With the potential for different companies to develop their own ways of using a front-facing camera, the prospect of communicating face-to-face for free is becoming more of a widespread reality.
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Comments 3
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Green 10 August, 2010 16:22
I think it'll be a while before Skype is genuinely threatened by FaceTime, the latter is only on iPhone 4's and only on Wi-Fi. Skype has had the time to develop apps for 3G that are on multiple platforms.
Skype do need to stay at least one rung up on the ladder from Apple, if they don't think about what they're going to do now then Skype will be overtaken, but I don't think it's too pressing at the moment.
torrentblock 11 August, 2010 13:27
i've been able to do video calling for years on various different phones on 3g. it's great for looking up other people's nostrils and arm ache.
in reality i only ever used video calling when drunk, to show other people what video calling looked like and laugh.
it makes more sense with a webcam on a PC or laptop where you can put a camera at a more flattering angle without feeling like you're doing a workout.
don't even get me started on how pathetic you look doing a video call in public.
Anonymous 12 August, 2010 20:24
Hello Skype, where IS your Android app? Many of us are waiting quite impatiently...
It's way past time to put out a proper app, at the very least capable of voice calling over Wi-fi or 3G.
We're quite sick of your vague promises, blaming others and acting irresponsibility toward us, your customers.