Industry analysts said it’s too early to predict what will happen to AT&T Inc. as a result of its decision to let iPhone customers use Skype on 3G handsets.

 

Though the operator’s decision -- annouced Tuesday -- to allow voice-based Internet calling services through Skype and other providers is being cheered by consumers and iPhone’s parent company Apple (News - Alert), industry experts say it raises a number of questions.

 

For example, will allowing Skype calls on AT&T’s cellular network will affect call quality for Skype (News - Alert) users, or cell services used by other AT&T customers?  

 

AT&T's new move does away with a controversial ban the U.S. operator had in place blocking Apple Inc. iPhone (News - Alert) users from placing phone calls using Skype and other Internet phone services on its network. Previously, AT&T  told the FCC in that it didn’t allow voice-over-Internet calling on the iPhone over its 3G network to guard against losing revenue to the services.

 

ABI Research (News - Alert) analyst Dan Shey said a lot more analysis will need to be done to see if there are sever service or revenue issues for AT&T.

 

 “Of all the iPhone customers, how many are going to be diehard Skype users and interested in getting free voice calls using an application outside of simply dialing a call using the embedded phone application?” Shey told TMCnet. “Certainly the techies, but what percent of the iPhone population is this?”

 

Noting that the announcement comes just a few weeks after the AT&T (News - Alert) complained that the FCC’s ‘net neutrality’ proposal – supported by Skype, among others -- could negatively impact service, some say AT&T’s decision could point to a broader strategy.  

 

“Perhaps there is some aspect of the FCC ruling that is driving AT&T’s decision but the FCC ruling is also one more reason that operators need to consider new revenue and business models if they are to stay viable,” Shey told TMCnet. “Overall, I think this decision shows that there are some operators that are looking beyond access for a significant source of revenue, which will be good for both customers and the entire mobile supplier community.”

 

Last month, in what appeared to be a response to a statement made by Josh Silverman, CEO of Skype Technologies -- who called next generation of smartphones “pocket-size computers that happen to be wirelessly connected” during a panel following FCC Chairman Genachowski’s announcement -- AT&T Wireless issued its own statement:

 

“To paraphrase a recent analyst comment, net neutrality is rooted in an assumption that broadband networks are instantly expandable, to an infinite extent, at little or no cost. To base policy assumptions on such fallacies is to conduct a risky experiment with American broadband investment, nearly all of which is private investment on which our nation depends,” AT&T stated. “This is especially so with U.S. wireless networks, which are facing incredible bandwidth strains, and which require continued private investment at very high levels, and pro-active network management, to ensure service quality for 270 million customers.”

 

On Tuesday, Silverman said AT&T’s decision proves that its customers are interested in Skype on the go, as consumers have downloaded and installed Skype on 10 percent of all iPhone and iPod touch devices sold.

 

“We applaud [the] announcement by AT&T to open up its 3G network to Internet calling applications such as Skype,” Silverman said in a statement. “It is the right step for AT&T, Apple, millions of mobile Skypers and the Internet itself. Nonetheless, the positive actions of one company are no substitute for a government policy that protects openness and benefits consumers and we look forward to further innovations that will enable even more mobile Skype calling.”