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January 30, 2011


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There is also the issue of "What do we do with Qik?" on the table.


I think one of the issues Skype is facing with their model of free Skype-to-Skype calls and paid Skype-to-POTS calls is that the sound quality of the Skype-to-POTS calls is so poor compared to the Skype-to-Skype calls (and sometimes even compared to POTS-to-POTS). When I first signed up for a Skype subscription, lured by the competitive rates and hoping for the crisp-clear quality that I was used to with Skype, I was so disappointed that I have never used Skype for calling to regular phones again.

Now they have come up with a great new multi-party video conferencing service which they rightly want to monetise, but their subscription model is simply ridiculous. I think the daily rate of 4 euros is insane compared to the monthly subscription which costs 6,90 euro. This model simply feels dodgy.

Combined with the redesigned interface of Skype 5 which is a monstrosity, my sentiments about Skype are not too positive at the moment. That is a shame because I have always been a big fan of Skype.

Let's hope that one day they will start focussing on the corporate market and bring us Grand Central (now Google Voice)-like features which I am sure will be a success.


Great analysis Andy....I am also wondering if the core value proposition is diluting. I may have more on a future post on TruVoIPBuzz, but as consumers get more savvy, they are free to use SIP clients with any other VoIP provider (which may work out cheaper). Several other providers (including Vonage that you have indicated) have much better plans as compared to Skype.

Their other product, group video calling is also not competitive anymore. There are credible alternatives.

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