New York — Skype, the prominent provider of Internet communications software and Japanese cellphone operator KDDI Corporation, on Sunday announced that they have entered in to an strategic alliance which will see the integration of Skype across KDDI’s services, and the first fruits of this partnership would begin with its mobile offerings — “au“.
KDDI is Japan’s second largest cellphone operator. Under the terms of the deal announced, which will see Skype’s Internet telephony service will be offered on wide range of cell phones and to broadband, in addition to fixed line and cable TV customers.
The companies said Skype would initially be made available on some cellphones running Google Inc.’s au Android smartphone “IS03” and “IS01” beginning November this year onwards; with plans for deeper integration on a range of au Android devices as well as BREW devices in 2011.
Under the terms of the alliance, the two companies have devised a whole new communications experience for Japanese users, offering them a superior, high quality and innovative way to connect with friends and family both domestically as well as internationally. The companies further said that users of the service would be able to make unlimited Skype-to-Skype voice calls without being charged against their monthly minute allowance or data plan.
In essence, this partnership means KDDI network subscribers can enjoy Skype conversations wherever they are. Japanese subscribers on the KDDI network can accompany their Skype conversations with them wherever they go and stay connected with their friends at all times by sending and receiving Instant Messages with the Skype app running in the background.
Additionally, at launch, the companies are planning a promotional offer with unlimited Skype-to-Skype voice calls to any Skype user in Japan as well as globally without any charge against their monthly minute allowance or data plan. After the promotion is over voice calls made via Skype from the handsets will be routed over KDDI’s voice network and incur charges. Skype uses KDDI’s voice network for Skype-to-Skype calls, giving users a reliable connection and top-notch call quality.
KDDI’s cellular service, which is marketed under the “au” brand name, had 32 million customers at the end of September.
“Skype on au is a leap forward in giving customers in Japan unlimited, global communications options, while expanding their calling community to hundreds of millions of Skype users worldwide,” said Takashi Tanaka, Senior Vice President, member of the board of KDDI. “We look forward to working closely with Skype to extend these benefits beyond mobile to broadband, fixed line and cable, and thereby maximize the satisfaction of our customers in every area of our business.”
The deal is possibly the largest Skype has endorsed so far in Japan and connected it with KDDI, a carrier second only to NTT in terms of customers and reach. KDDI operates the country’s number two cellular network, has a vast fixed line business that reaches millions of consumers and businesses, operates a nationwide fiber-to-the-home network, and holds stakes in the country’s dominant WiMax and cable TV operators.
“Skype is thrilled to partner with KDDI to deliver a high quality, innovative communications experience for Japanese consumers,” said Skype interim CEO, Adrian Dillon. “KDDI’s position as a leading network provider in Japan that offers a wide range of communications services, makes it a natural partner for Skype given our vision to make Skype available everywhere and enable users to take their Skype conversations with them wherever they go.”
In the United States, Skype has a pact with Verizon Wireless to offer its internet phone service on Verizon mobile phones. Verizon is a venture of Verizon Communications and Vodafone Group Plc.
Skype, which was established in 2003, filed for a $100 million IPO on August 9, but it is likely the company will raise more. A group of investors bought Skype from eBay Inc. in November 2009 for $1.9 billion in cash and a $125 million note.
The companies did not elaborated on a time frame for this expansion.