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.