Friday, October 21, 2005

Another Problem For eBay And Skype


Add this as another reason why I think eBay's acquisition of Skype was a mistake.

The analogy that comes to mind is Napster and iTunes. The difference is in this case is the object in question is large bandwidth usage.

From WSJ Phone, cable firms rein in consumers' Internet use

Several large telephone and cable companies are starting to make it harder for consumers to use the Internet for phone calls or swapping video files.

Wireless phone companies like Verizon Wireless and Vodafone Group PLC stipulate in their subscription contracts that customers can't use the company's high-speed Web-access networks for Internet calling -- or may prohibit usage in the future.

Do you think customers read that stipulation in their contract? Will other providers start to implement these new restrictions when they offer VOIP?

Critics say the big operators are using their concerns about heavy network traffic to fight competition from smaller rivals that are using the phone and cable companies' networks, like Internet calling companies Skype Technologies SA or Vonage Holdings Corp.

My bet is on telcos and cable companies being the final winners for VOIP.

Thoughts comments?

5 comments:

Anonymous said...

You could be right, especially when it comes to the mass adopters, the so called non-tech minded people. They want 1 package with everything in it and user friendly.
The only thing in the way could be free voip and internet access from Google once wimax is out of the box.

BTW what a sexy site as of lately PP ;-)


Capastorm

Scott Shaffer said...

How many people want to call Skype support if there's a glitch in their service?

Wouldn't you rather call your cable co or telco for tech support?

I look at VOIP as having to pay for ANOTHER ISP account. Unlimited long distance for x price. The amount I pay will be cheaper than my long distance bill, so it's a win-win.

Some of the new advertisers bring in high traffic and relate to the mobile space.

Stay tuned, there are a few others soon to be added.

Anonymous said...

Why would you have to pay to use skype? Voice over internet is free unless you call an analogue phonenumber, but thats not voip.

When it comes to tech support that's for people not so familier with the internet and they're not the ones using Skype.

Capastorm

Scott Shaffer said...

To quote the WSJ article..

"Wireless phone companies like Verizon Wireless and Vodafone Group PLC stipulate in their subscription contracts that customers can't use the company's high-speed Web-access networks for Internet calling -- or may prohibit usage in the future"

No you wouldn't pay for Skype, you would have to pay your service provider for a "free" VOIP service.

Anonymous said...

Exactly! Verizon and other ISP's want to market their own skype version...and when they do you won't hear them complain about users making voip calls over their network or congestion problems...

What they should concentrate on is upping the download speeds, like whats happening in Asia and Europe...i mean those continents are ready to download the latest movies from Clickstar so come on...

Anyway i stick to my Google + Wimax prediction disrupting everything...first free phone calls and then free internet connection...it's all about services and advertising in the end...


Capastorm