Vodafone Not Threatened By VoIP

    September 20, 2005
    WebProNews Staff

The world’s biggest revenue generator in the mobile phone sector has no plans to block VoIP on its network.

In a talk with analysts and investors, a Vodafone executive stated the company would compete rather than block VoIP services. Vodafone partners with Verizon for its operations in the United States.

“Our view is we need to make sure we are cost competitive rather than trying to stop Voice over IP,” Reuters UK cited Vodafone CTO Thomas Geitner as saying. Reportedly VoIP software such as that provided by Skype can work on some mobile handsets today.

VoIP received a profile boost when eBay entered into an agreement to acquire Skype and its 52 million registered users. That deal will see eBay pay as much as $4.1 billion for the company.

VoIP blocking was mentioned in the news in the wake of Skype’s partnership agreement with China’s top portal company Tom Online. Although neither Skype nor Tom planned to include the Skype Out service in the deal, one unit of China Telecom placed blocks on its network to thwart the service anyway.

The reasoning for the block was to ensure Skype’s low-cost service, which would permit international calling, would not be a threat to China Telecom’s high-margin profitability in that area.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.