Nokia to Bundle Skype into Smartphones

Nokia has announced plans to include Skype VoIP software into selected N-series devices, starting with the Nokia N97.

Finland’s Nokia has announced it will begin bundling Skype VoIP software into Nokia N-series devices, beginning with the N97 in the third quarter of 2009. Skype is the world’s leading VoIP application, with more than 400 million users, and is wildly popular for its free Internet-based computer-to-computer calling, as well as for affordable voice plans that enable calls to and from standard telephone networks. Financial terms of the deal were not disclosed.

“Making Skype available everywhere through mobile devices is essential to fulfilling our vision of ‘enabling the world’s conversations’,” said Skype COO Scott Durchslag, in a statement. “Collaborating closely with Nokia to preload and integrate our software onto their devices will benefit the many Nokia customers who already use Skype, as it makes Skype easily accessible and simple to use on the go.”

Nokia plans to integrated Skype functionality into the N97s address book, so users will be able to see when Skype contacts are online for either voice or instant messaging service. N97 owners will be able to use 3G or WLAN networking to receive Skype-to-Skype voice calls, as well as place Skype calls to landlines and other non-Skype mobile devices.

The move may not help Nokia’s popularity with mobile network operators, who have historically viewed Skype as a competitor—and mobile devices with Skype functionality are, therefore, a threat to mobile operators’ revenue streams. However, Skype CEO Josh Silverman has asserted that Hutchison Whampoa’s mobile service 3 had actually seen significant revenue increases from customers using Skype-enabled handsets because the flat-rate data plans encourage greater overall phone use.