Embedding Skype in Mobile Handsets - Destruction of Cellular?

Thread Title:
Calling Without Cellcos
Thread Description:

Peggy Anne Salz write a compelling piece over at the Feature predicting embedded Skype and similar technologies in Mobile handsets this year - if it took off in a big way, it could kill the cellular carrier biz model:

With 52 million downloads and counting since its commercial launch in August 2004, Skype has clearly fuelled consumers' passion for free voice calls over the Internet. Estimated to carry 25% of annual VoIP traffic (as counted by TeleGeography), or the equivalent of 4% of total international traffic worldwide, the impact of Skype and other VOIP applications could put a serious dent in mobile operators' revenues.

The scenario for the mobile industry turns from bad to worse when Skype is embedded in a 3G phone or Wi-Fi-enabled device, and falling data prices offer users a much cheaper alternative to cellular voice. Indeed, one eager Taiwanese handset manufacturer recently wrote an open letter to Skype asking for the privilege to be the first to embed the technology in its 3G phones, leading many to believe such handsets will appear this year.