Microsoft-Skype Deal May Upset AT&T, Verizon

Microsoft’s backing of Skype may be seen as a threat by wireless carriers such as AT&T and Verizon Wireless because it could cut into voice revenue, said Craig Moffett, an analyst at Sanford C. Bernstein & Co. in New York.

“It is kind of a head scratcher to me how Microsoft is going to navigate the complicated relationships that it has to have with carriers at the same time as it is repositioning itself as a potentially major threat to their wireless voice business,” Moffett said. Microsoft is trying to expand in mobile devices as it faces slower growth in personal computers, the traditional market for its Windows and Office software. The company, which has lost ground in the smartphone market to Apple’s iPhone and Google’s Android devices, introduced the Windows Phone 7 operating system last year and struck a partnership this year to have Nokia Oyj use Windows as its primary handset software. Software such as Skype’s may cut into revenue for wireless operators because it allows users to make calls with data services, just like they do when surfing the Internet, rather than using traditional voice minutes. Carriers typically charge customers for voice plans and data plans separately. Using a data plan for voice or video calls can make them much cheaper for customers, Moffett said. Google and Apple offer similar products. “It’s certainly a threat,” said Moffett.