X-bit labs

The Future of Skype Analyzed

by Anton Shilov

[ 08/16/2005 | 10:53 PM ]

Even though Skype, which provides Voice over Internet Protocol (VoIP) telephony services and PC-to-PC calling, turns two years old later this month, its business model is still unclear. In fact, the service could become a platform for next-generation voice and video communications, evolve into a high-profile Internet company or just stay where it is now.

Knowledge@Warton has posted a brief analysis of the future of Skype that covers a number of possible options:

• Skype could emerge as a new communications platform that ties voice and video, not to mention millions of people together via handheld devices.
• It could be acquired by an established communications or media company, even though Skype’s chief says that the company is happy to be privately-held.
• The company could be pulled into a regulatory fray over issues such as 911 calls as it grows into a de facto telecommunications company…
• …or it could remain an underground movement that continues to garner millions of users across the globe and is able to skirt regulatory concerns altogether.
• Another potential threat for Skype lies in cable and telecommunications companies that could block its use. However, Skype’s chief says such a move would be counterproductive for the telecoms, as people may cease to use their services.

Links:

• CNET News.com: Can Skype Beat the Hype?
• Reuters: News Corp. Eyed Skype for $3 Bln Takeover – Report.
• Reuters: Skype Investor Says Web-Talk Firm Should Stay Single.
• Knowledge@Warton.
• Skype: The Whole World Can Talk for Free.