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Summary:

Given all the sound-and-fury around the much speculated Skype-Yahoo mash-up, the big question that needs serious pondering is Yahoos voice gameplan. Reuters has an overview of Yahoos voice plans, and how they fit in with their partners, like British Telecom, SBC and other incumbent phone companies. […]

Given all the sound-and-fury around the much speculated Skype-Yahoo mash-up, the big question that needs serious pondering is Yahoos voice gameplan. Reuters has an overview of Yahoos voice plans, and how they fit in with their partners, like British Telecom, SBC and other incumbent phone companies. They are wondering aloud about whether they should build or buy a Skype type service.

“We could put one together real quickly,” said Scott Helbing, senior vice president for consumer marketing, in a recent interview with Reuters. “We don’t have that service right now, but we’re interested in it and we’re investigating time to market and the services that are out there.”

By working with the carriers, we’ve found there’s a very nice symbiotic relationship,” Garlinghouse said. With voice messenger services, “one of the nice things with working with BT is it allows us to deliver a much higher call quality.”

In other words, they will stick to offering free PC2PC calls but would not do anything to connect with PSTN networks, lest they upset their incumbent partners. The incumbents will try and impose the pricing policies of yesterday on services of tomorrow. They have no choice, because if they dont then the deflationary forces will weight even more on their traditional voice plans. These extraneous factors will weigh on Yahoos voice plans, which despite the companys best efforts might come a cropper. What Skype has done is basically set the floor of paid-voice services, and when push comes to shove they can lower it even further. (Their ultimate exit is a flip!)

Outlandish theory: by buying Skype, and imposing incumbent pricing structure, Yahoo could help its incumbent partners by taking out what is being viewed as clear and present danger for the old line phone operators.

  1. The consensus seems to be that Skype has reduced charges for long distance calling. Since they resell services from wholesalers, the only thing they have eliminated is the need for POPs and access charges at the originating end. So I do not see the deflationary trend set by Skype.

    Alternatively, as I have argued at other places, one can offer parasitic “Out” services on top of these IM clients, if the voice chat has good quality.

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  2. Jesse Kopelman Monday, June 13, 2005

    Buying Skype just to take it out would be self defeating. Look how fast it grew. Whatever came along to fill the void would grow even faster. And buying Skype would solidify the build it and flip it pot of gold to incent that next thing, garantying they would come strong and fast.

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  3. [...] d(‘post-4342′).parentNode.className += ‘ adhesive_post’; A week ago, I asked the question: how serious is Yahoo about voice? It seems they are quite serious! That’s no [...]

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  4. I think its the opposite, Google needs skype more than Yahoo. Google dosn’t have an IM offering, yet. And look at what integration with Messenger did to msn spaces, it has more blogs than blogger.

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