Microsoft has placed a colossal bet on internet telephony by acquiring Skype for US$8.5 billion (Dh31.22bn).
The deal marks the software giant's biggest acquisition in its 36 years. Skype, which offers cheap or free calls and video chat services, will now be under a new business division at Microsoft.
"Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world," said Steve Ballmer, the chief executive of Microsoft.
But there is growing speculation over how Microsoft may try to make money on Skype's business, which is notorious for earning little in net profits relative to its 170 million users around the world.
One approach could be charging for traditionally free Skype-to-Skype calls between computers. Such a service is not banned in the UAE, unlike computer-to-telephone calls, according to a representative for the telecommunications operator Etisalat.
There is still a lack of clarity about the legal status of all internet telephone services in the UAE. In January, the Telecoms Regulatory Authority relaxed its ban on such services saying that any restrictions would be enforced by operators Etisalat and du.
Neither company has since made its position clear on Skype, however.
Another for Microsoft tactic could involve providing lower-quality calls for free, while adding charges for a clearer service or certain features, said Thomas Kuruvilla, the managing director of Arthur D Little in Dubai, a consultancy that focuses on the telecom industry.
But Mr Kuruvilla warned such changes could deter subscribers. "You have to maintain the free computer-to-computer calling, otherwise Skype is going to die."
nparmar@thenational.ae
