for call revenue by using AT&T’s own network to provide users competitive calling plans. Even after finally being allowed on the network, it remains unclear how Skype plans to monetize this new platform.

Earlier this year, Skype announced that on August 1st it would start charging iPhone users a “small monthly fee” to use Skype on their handsets. The move seems like the obvious and necessary decision; if the fee is small enough most iPhone users, used to dropping substantial sums on monthly service plans and sometimes equally

substantial sums in the iPhone app store, would hardly notice an extra dollar or two a month. Add in some innovative billing solutions in partnership with AT&T and it would seem like the yellow-brick road to revenue. But in July, Skype announced that it was scrapping its plans to charge fees for 3G calls. The official release from the company stated that “with some operators starting to move to tiered pricing models [...] we no longer have plans to charge a supplement to make calls over 3G.” The implication is that Skype has or will reach deals with network carriers for a percentage of revenues from Skype calls placed over tiered mobile networks. Tiered networks put an end to most providers current all-you-can- eat data-buffet, so the longer someone talks over Skype, the more data they use, the more revenue is generated. But so far, this is all theoretical. It remains to be seen how generous the network providers will be when it comes to negotiating terms with Skype and other OTT providers.

It’s not all doom and gloom for Skype. Despite the current uncertainties surrounding revenue from mobile networks, untapped revenue streams may lie just over the horizon.

As it stands now, there are no banner ads on Skype’s website. But such an obvious source of income isn’t interesting; Skype could throw banner ads up tomorrow and see a new revenue stream, but what could really sustain long term growth for Skype and other OTT providers are emerging ad opportunities in partnership with content service providers (CSPs). CEO of digital advertising agency AKQA, Tom Bedecarre, is excited by the possibilities presented by web-integrated mobile voice and video calling; "imagine a telephone feature in an ad to immediately call a toll free number and buy something [...] I'd love to put our clients on Skype."

Even more, undreamed of revenue streams lay in the future, but because OTT providers do not control their own network access, the ability to capitalize on them may be out of their hands. Hardware manufacturers, CSPs and network providers will all doubtlessly want to have their hand in these new revenue streams as well. OTT providers must be able to negotiate effectively with third parties while maintaining a paying customer base if they are to survive well beyond their IPO.