Feeds

Skype VoIP threat to Euro telcos

Ringing the changes

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

Broadband telephony outfit Skype looks set to become a major threat to Europe's traditional telcos as more and people use the net to make phone calls.

According to research outfit Evalueserve, the European telecoms market is more vulnerable to Voice over Internet Protocol (VoIP) providers because of per minute tariffs and high roaming charges.

With 13m users worldwide and numbers growing by 80,000 a day, Evalueserve reckons Skype could have between 140-245m subscribers by 2008.

It forecasts that incumbents could see revenue fall by as much as 10 per cent because of the surge in demand for internet telephony with profit predicted to slide by at least 22-26 per cent.

Marc Vollenweider, CEO and President of Evalueserve, said: "Skype could be a major step towards a change in the business model of the telecom industry ? a model in which basic voice services are offered free of cost and are subsidised by revenues generated from value-added services.

"Overall, Skype represents a massive discontinuity in the telecommunications industry, driving the convergence of voice and data much faster than originally anticipated." ®

Related stories

Vonage offers VoIP mobile phone
Skype ties up with C&W
Kazaa signs up with Skype
Vonage: recipe for success?

The Power of One Infographic

More from The Register

next story
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
NBN Co execs: No FTTN product until 2015
Faster? Not yet. Cheaper? No data
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.