Skype Journal | VoIP

Unbound Spiral: Skype VoIP Costs

June 15, 2004 03:28 PM

More details on the Skype VoIP showdown. See VoIP suffers identity crisis | The Register for "VoIP suffers identity crisis".

Still no rates published. So how much will it cost to SkypeOut? I've held back on this rate card for some time. However the address is still there. It's not officially announced and suggests European rates only. At less than two cents per minute US it is pretty cheap to call across 25 countries. Not as cheap as Stanaphone I'd add which is free for the first 120 minutes per month.

SkypeOut Global Rate: 0.012 €/minute
With the SkypeOut Global rate you can call regular phones in 25 countries around the globe, while only paying the price of a local call no matter where you are calling from. All Skype-to-Skype calls are of course free of charge.
SkypeOut Global Rate

Implications for Cost.
At two cents per minute $10.00 will buy you 500 minutes. That's a pretty cheap option. More importantly, those are likely to be rollover minutes further cutting costs for most users. If cellphone operators would provide automatic voicemail to e-mail forwarding then this becomes even more attractive. My kids wouldn't burn cellphone minutes at home and the home phone in our case could go.

Why has Skype not yet launched?
Problems with a US partner? Agreeing call rates. We don't know. Quite probably getting a decent interconnect without a huge deterioration in sound is difficult. Users will discover that every Skype to PSTN call is at a lower audio than Skype to Skype. Plus when people pay... they will be very angry if a poor connection burns up minutes. It's a completely different equation to getting it for free. Consumers have zero tolerance for poor service. "Can you hear me now?" Not to confuse with Verizon my former cellular provider.