Skype pushing regulators in Europe & US to allow VoIP

Belgian-based Internet telephone provider Skype is lobbying US and European regulators in earnest to allow users to make free or cheap calls over the internet on their mobile phones.

PCWorld reports that European Telecom Commissioner Viviane Reding last week warned T-Mobile, German telecom giant Deutsche Telekom’s mobile subsidiary, that she wouldn't tolerate discriminatory behaviour that tries to block VoIP providers from expanding in the mobile phones market.

T-Mobile's stated intention "to block by way of contractual prohibitions the use of Skype Internet telephony services," is arousing "a close interest" within the Commission Ms Reding said.

"Discrimination of Voice-over-IP services by operators with significant market power must not be tolerated by national regulatory authorities," she said.

European anti-trust laws don’t allow exclusionary conduct that harms competition, and new roaming regulations that came into effect at the beginning of this month specifically outlawed such discrimination.

In New Zealand telcos tend to avoid putting such obvious anti-competitive behaviour into policy, and instead use prohibitive data-charging plans to tilt the playing field away from VoIP operators.

Skype director of government and regulatory affairs Stephen Collins said to PCWorld that mobile operators were shooting themselves in the foot if they tried to prevent VoIP providers from offering their services via mobile phones.

"We find it odd that T-Mobile would seek to block or discriminate against users from accessing Skype on their iPhones or other handsets. If they want to develop successful mobile data networks they should be encouraging people as much as possible to use their mobile devices to access Internet applications and services," he said.

Mr Collins likened the heel-dragging approach of telcos to AOL, which used a ‘walled garden’ offering in the early ‘90’s that restricted subscribers from access to the full internet – and worked - until other ISPs upped the competition and began offering full access.

"Eventually all the mobile operators will get the point that open Internet access will be a key driver of data revenues for them, but they may need strong encouragement from Madame Reding and national authorities before they actually do the right thing for consumers", Mr Collins said to PCWorld.

The US Department of Justice is also investigating whether telcos are abusing their market power, such as by restricting VoIP services such as Skype’s.