Skype Journal

Unbound Spiral: Skype Interconnect Coming

May 12, 2004 10:59 AM

If you are a startup with a little money in the bank and burning a hole in development costs for interconnects, porting to OSX, Palm and Symbian platforms you would probably be in a hurry to figure out how to generate more revenue.

Selling prepaid calling plans might just be the thing. Having already adapted to making international calls for free, connecting and convincing other friends and family to Skype may just get a boost from those that use it. "I'm calling you via Skype" costing me a couple of cents.... of course if you get it this call would be free. Apart from that... A $10 calling card might just be the thing. How many could Skype sell? Buy a prepaid card and support Skype. Now that looks like applying the Dell financial model to telcoms. Collect the cash first, then provide the service. It's worked before.

Now my questions. Will Skype do this with one carrier providing the interconnect or adopt SIP? My guess is start with one carrier and then provide SIP connectivity later. SIP connectivity will tie to the enterprise products.

Mr Zennstrom said the paid service would allow access to standard telephony.

"We allow people to make free phone calls because we don't have the same costs as the phone companies," he said.

"We will make money by upselling value-added services. Shortly, we will allow people to make landline calls.

"We have a small percentage of users who will subscribe."

Mr Zennstrom said he was not keen to take on advertising.

"We had lots of advertising with KaZaA, and one of the things we decided with Skype was to do the opposite," he said.

"One of the reasons Skype has grown is because people like the product, and if we have advertising maybe people won't like the product as much."

a title="Australian IT - KaZaA chiefs tackle VoIP (Simon Hayes, MAY 11, 2004)" href="http://australianit.news.com.au/articles/0,7204,9524843%5E15322%5E%5Enbv%5E15306,00.html">Australian IT - KaZaA chiefs tackle VoIP (Simon Hayes, MAY 11, 2004)