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February 11, 2004


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Craig Poschmann

I am sure that the VCs want in on Skype because their model of giving away a free service, to an already gigantic base of existing clients, is 100% a better business model than that of Vonage or Packet8 who actually have to spend millions on marketing to get customers (still trying to figure out if Packet8 even spends any money whatseover on marketing or if they even care to sell their product en masse). When Skype announces that they plan to offer a premium service similar to what Packet8 and Vonage have, Skype will already have millions on existing customers from the Skype/KaZaa network. The VCs in my opinion are betting that Skype will win big with its already big customer database.

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