Dutch Telco KPN Charging For Skype / IM / VoIP

[Ignitionnet]

http://arstechnica.com/tech-policy/n...ming-video.ars

Dominant Dutch wireline and mobile provider KPN, which offers services across Western Europe, has taken the idea to heart. The company has just announced plans to charge mobile phone users separate fees for using voice-over-IP (VoIP) services like Skype, instant messaging programs, and streaming video. Specific new rate plans haven't yet been announced.

"Services such as browsing, using mobile VoIP, instant messaging and watching videos will get their own price tag, just as it is now with calling and sending an SMS," a company spokesperson told Dutch site Tweakers.net. The story has been widely covered this week in the Dutch-language press, with KPN being unusually direct about what it's doing and why.

With SMS and voice calls declining, KPN has decided that differential rates for Internet services will help it maintain current revenue levels. Dutch regulator OPTA has already said publicly that it's fine with the move, so long as KPN is transparent about how it charges. In fact, an OPTA spokesperson said she would "cheer such a development," since it provides more choice for consumers to put together a subscription package that meets their needs.

[weesteev]

Inevitable, wont be long till we see similar scenarios with UK providers I would think.

[Hugh]

Yup - the free lunches are coming to an end....

[Ignitionnet]

Originally Posted by weesteev

Inevitable, wont be long till we see similar scenarios with UK providers I would think.

Absolutely. They were unlikely to tolerate the loss of SMS / voice revenue and being used as a dumb carrier for too long.

As the Dutch authorities say this is a good thing - more opportunity for operators to differentiate their offerings and indeed for customers to pay for exactly what they want.

A la carte mobile voice and data services!

[Stuart]

Is this good for the consumer. On the face of it, no.

However, think about it another way. The reason Skype and other IM/VOIP providers can charge so little (or even give a free service) is simple. They have little infrastructure to pay for and pay almost nothing (if anything) to the providers that carry their services.

Where it could be good is that the telephone companies who provide the bandwidth need money to maintain and upgrade the infrastructure that carries those calls. Money which they get if people pay for their calls.

Maybe I should explain that. We (as consumers) want faster and better comms networks. These cost many billions to implement, but we expect the telecoms companies to pay for it while the likes of Skype are busy depriving them of the cash they require.

Now, I know that the telecoms companies are hardly on their uppers, but a lot are seeing declining revenues which for the long term is not good.

[Ignitionnet]

It's the same problem as with the fixed lines. Prices are low, little incentive to invest as the prospect for returns is dim.

We may not like the idea of paying more for anything but at the same time if we expect the latest and greatest obviously something has to give.

[Hugh]

But, but, but....

The Internet must be free!!!

[Ignitionnet]

Originally Posted by Hugh

But, but, but....

The Internet must be free!!!

Indeed, and the lack of an interest in paying for it is why the quality can be very hit and miss.

Well, that and that people who don't like paying for their Internet aren't too keen on paying for content either. The free ride has showed signs of coming to an end for a while.