Subba’s Serendipitous moments

February 18, 2009

Nokia – Skype deal will change the market landscape

Filed under: Business,Competition — Subbaraman Iyer @ 10:46 pm
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Nokia and Skype announced a significant deal which will change the market landscape completely.

Skype with over 400 million subscribers has a lite version which works on several handsets including that of Samsung, Sony Ericsson, Motorola and some models of Nokia.

But this deal with close integration to the Nokia’s N97 and followed by other handset models will give Nokia a decisive advantage against their models. Nokia is already the largest handset manufacturer today.

The key group which will be severely impacted would be the VoIP players who may face survival  issues. Already the bulk of the VoIP service providers are challenged to convert their users to profitable customers. Unless they find an alternative strategy by integrating the VoIP services with other services, they will find it difficult to survive.

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