[asterisk-biz] Skype Free International Calls

[Steve Kennedy]

On Thu, Jun 22, 2006 at 05:31:35AM -0700, trixter aka Bret McDanel wrote:

> On Thu, 2006-06-22 at 21:57 +1000, Craig Lawrence wrote:
> > Can anyone make sense of Skype's business model? See this...
> > http://www.amperordirect.com/pc/r-skype-news/z-news-062106a.html
> > I assume I'm missing something.
> Near as I can tell they are doing this as a loss leader to build a brand
> name and market acceptance.  IE build their user base so it can become
> profitable.  

In order for Skype to make money they need people to use their value add
services. While everyone just uses Skype for PC to PC calls, they're just
another IM client.

If Skype can promote SkypeOut/SkypeIn, Voicemail etc and get people
using them, then users are likely to continue to use those services and
pay for them.

They have a huge installed base, but currently poor revenues (the
current revenues and expected revenues were published as part of the
Ebay purchase). If they can accelerate the up take of paid for services
then Ebay will be happy (and Skype shareholders who get a 2nd round of
payments if Skype meet various targets).

ISPs are used to buying customers, Skype are just buying long term value
add usage.


Steve




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