Microsoft Skype scoop - What is in it for FB?

Microsoft's (Nasdaq: MSFT) announcement Tuesday of its purchase of Skype for US$8.5 billion stunned industry watchers, who had seen Facebook, Google (Nasdaq: GOOG) and perhaps Cisco (Nasdaq: CSCO) sniff around the VoIP giant in recent weeks.

The impact of that deal, if it gets the thumbs-up from regulators, will reverberate through the online services industry.
Even though it's lost the chance to buy Skype for itself -- presuming it was interested in the first place -- Facebook is likely to be a major beneficiary of the purchase, given its long-time relationship with Microsoft. Embedding voice into Facebook's services could further enhance the social  networking giant's appeal.
"Facebook doesn't desperately need VoIP or video chat, but having them would nonetheless make it a better service, closer to the communications nexus [Facebook CEO] Mark Zuckerberg envisages it to become one day," Aapo Markkanen, a senior analyst at ABI Research, told the E-Commerce Times.
It's possible that the two will also team up against their common enemies, Google and Apple (Nasdaq: AAPL), in a battle for online advertising dollars.
Microsoft, Skype and Facebook did not respond to requests for comment by press time.

Skype and Microsoft

Skype will support various Microsoft devices, including Xbox, Kinect and Windows Phone, Redmond said when announcing the purchase of the company Tuesday. Microsoft will also connect Skype users with Lync, Outlook, XboxLive and other communities.
Microsoft expects the purchase will let it offer real-time video and voice communications to both consumers and the enterprise, as well as generate new business and revenue opportunities.
"With Microsoft owning Skype, expect to see greater integration of Skype services, particularly mobile video chat, on Windows Phone services," Chris Hazelton, a research director at the 451 Group, told the E-Commerce Times.

Hello, World

Microsoft and Facebook have a relationship dating back to at least 2006, when they teamed up on online advertising in the United States. The following year, they expanded the agreement to cover international markets, and Microsoft took a 1.6 percent ownership stake in Facebook for $240 million in equity.
Under the new agreement, Redmond became the exclusive third-party advertising platform partner for Facebook.
In 2010, Microsoft incorporated Facebook into Bing to provide social search.
Chances are, Microsoft will give Facebook access to Skype's services.
"This will be a win-win tie-up," Jia Wu, a senior analyst at Strategy Analytics, told the E-Commerce Times. "Facebook would gain more usage and traffic by having Skype on its platform, and Skype could gain more users as well," he added.
Access to Skype would plug a gap in Facebook's services.
"What Facebook doesn't have now is voice communication," Wu pointed out. "Once they fill that hole, Facebook will become a very powerful communication tool and it will get more users."
That will fit right in with Zuckerberg's vision of making Facebook the next generation of messaging. He announced a new messaging system last November aimed at achieving that goal. The new system is aimed at integrating messages from any of several media -- SMS, email, Facebook messages and IM.

Taking on the Enemy

Teaming up over Skype would let Microsoft and Facebook tackle the competition.
"Microsoft and Facebook have a mutual interest -- to tackle Google's and Apple's ecosystems in communications, entertainment and advertising," ABI's Markkanen said.
"It's about rivaling ecosystems and the advertising revenues they generate," he elaborated.
Integrating Skype into Facebook's services will further strengthen the social networking giant, Strategy Analytics' Wu suggested.
"Facebook is already ahead of Google in the social networking area, and if it can offer Skype, that will further strengthen its position," Wu explained.
Initially, Facebook might allow members to call contacts through a Skype plug-in, but later it might enhance its chat function by, for example, enabling video calls, ABI's Markkanen suggested.
That would put Facebook on par with Google, which offers PC to PC calls, file transfer and video chat through its Google Talk service

The World waits to see LG 3D on phone

Big screen, middle screen, little screen," might be a fast way to describe the journey of 3D technology, the last leg of which LG unveiled Monday at the Mobile World Congress.
The world's first three-dimensional smartphone, LG's Optimus 3D runs the Android operating system on a 4.3-inch LCD glasses-free screen. Images don't jump out at users, but live on the screen with depth. The Optimus can convert files into its own format, access games and display YouTube 3D. Other unusual features include dual rear cameras that can record 3D video that will require glasses to be properly viewed during playback.
Despite its many new features, whether Optimus becomes the latest "must have" handheld will depend on how much ubiquity users think artificial 3D imagery should have in their lives.
"Grainy and glorious" is how technology public relations expert Richard Laermer describes the 2D world Optimus and other larger-screen technologies are pushing into the past.
"Why, I wonder, does anyone need 3D? Are our lives that boring that images themselves can't suffice? At this point, I am boycotting anything 3D," he told TechNewsWorld.


However, with moving images moving ever faster into a three-dimensional future, Optimus appears "very promising" to Greenberg Glusker technology attorney Aaron Bloom. "Just about all media is moving to 3D technology, whether we like it or not."

Interactivity and Immersion

The ability to have "a 3D experience no matter where you are" is the LG Optimus smartphone's big promise, Bloom explained. "The primary disadvantage is that 3D means a lot more information, which will drain the battery life faster and also clog up the phone's memory."
The advantages of 24/7 3D are a long way from being proven, however, as is taking this once-special cinematic treat to such small, mobile screens. With movies such as "Avatar" or games on  Microsoft (Nasdaq: MSFT) Kinect, 3D in the large actually adds something to the viewing experience, including interactivity and immersion.
A smartphone, however, couldn't be more different. Viewing times are seconds or minutes instead of hours, and the viewing environment always changing: indoors, outdoors, sun, shade, on the go, in the car, in bed, on the street.
Speaking of cars, smartphones have already drawn the ire of automobile safety advocates. The thought of drivers viewing potentially jittery three-dimensional images is almost certain to raise even greater concerns -- and maybe even a few new state prohibitions.

Godzilla vs. Optimus

Given the concept's brand new track record, it takes some imagination to figure out what 3D will add to the smartphone's short-time, ever-changing situations.
"All I can imagine it being useful for is Godzilla movies in old black and white," Laermer quipped.
However, it may prove useful in ways that have yet to be invented.
"I think 3D technology on smartphones will lead to new applications such as 3D video conferencing," Greenberg Glusker's Bloom told TechNewsWorld. "I also think that it may be used by experts in remote locations unable to get to a full-sized computer during a time when an important decision has to be made. For example, a medical expert might be able to look at some 3D images on his smartphone while traveling, and help his team back home save a patient's life."
Videoconferencing makes sense, because it's a relatively stable platform -- but even stable platforms are imperfect 3D environs. Headaches, crossed eyes, and general nausea are among the many complaints viewers level at large-screen 3D imagery.
Content to let "early adopters" -- who are likely to pay more for the pleasure -- sort out initial complaints, Bloom will wait and see.
"I will not rush out to buy a 3D smartphone any time soon," he said.

RIM -- BlackBerry Bold 9900 and 9930

Research In Motion today has unveiled its latest additions to its Bold series of smartphones, the RIM BlackBerry Bold 9900 and the BlackBerry Bold model number 9930. RIM's new BlackBerrys look very much like the company's other traditional Qwerty handsets, but now it also includes a 2.8-inch, VGA (640 x 480) capacitive touch screen-- a very nice and welcomed new addition.
Those two new smartphones will also run the latest BlackBerry 7 operating system, which brings support for increased reality video applications via a built-in magnetometer and faster browser and graphics performance, and also sports a 1.2 GHz Snapdragon CPU and NFC (near field communications) technology for secure mobile payments.
The new devices all feature Bluetooth, Wi-Fi and GPS functionality, with the BlackBerry Bold 9900 offering quad-band GSM, tri-band HSPA+ support and the BlackBerry Bold 9930 offering dual-mode CDMA/EV-DO Revision A/GSM support.
Both are expected to ship globally sometime in July or August, and it looks like T-Mobile has already committed to bringing the BlackBerry Bold 9900 to market later in 2011 as its first 4G-capable BlackBerry device.

Research In Motion added that these are the thinnest BlackBerrys to date and highlighted the mobile handsets' 5-megapixel camera with 720 pixel high-definition video recording capabilities and 8 Gigs of internal memory.
Wireless Industry News will soon bring more details about the pricing, additional wireless carrier support, and specific release dates as they become available.