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Skype cuts SkypeOut prices

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Skype says it is cutting prices on SkypeOut service. The service that allows Skype users to call PSTN is now going to cost 0.017 Euro per minute. Skype is trying to spin this, but price cut show that that the SkypeOut adoption is slower than what Skype management may have estimated.

3 Responses to “Skype cuts SkypeOut prices”

  1. Jesse Kopelman

    Craig, I think Skype is trying their best to skirt this issue. Technically, the Skype Out service probably does fall under this ruling. Skype is very careful to inform you that Skype Out is only intended as an adjunct, not a replacement, to your primary telephony service. I think they are relying on that to shield them from this ruling. The real question is how could they possibly support E911 when your Skype identity can be used from virtually any device and any location. For that matter, how can they, or any other VoIP provider that does not tie the service to a fixed location, even support 911? 911 is not an inherently national service. It relies on knowledge of a users location to route the call to the phone number associated with the location appropriate PSAP. I would imagine you just get an error if you dial 911 using Skype Out. So, why worry about E911 when you don’t support 911 at all. Basically, the FCC is hoping that if someone was smart enought to figure out how to do internet telephony, they will be smart enough to figure out some “magical” 911/E911 solution. They will probably even be right, just not about the timetable.

  2. om, rather than mail you i thought i;d ask a question via this post…

    regarding the FCC order on e911 compliance:

    It says that

    [1] “Interconnected VoIP service” means an interconnected Voice over Internet Protocol (VoIP) service that: (1) enables real-time, two-way voice communications; (2) requires a broadband connection from the user’s location; (3) requires Internet protocol-compatible customer premises equipment; and (4) permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

    Now does this mean that if you are a company like skype, but do not allow the receival of calls from the PSTN, only calls terminating to…as a service—does this mean you are not in the group that needs to comply with this FCC order? And, why is skype not in a fit over this…they have skype in and skye out.


  3. Jesse Kopelman

    Instead of bad news for Skype, I read this as bad news for traditional telcos. This means that people are more than willing to go Skype at both ends so that they can talk for free. Soon the only PSTN traffic is going to come from cell phones and that might not last long as 3G lets them go end to end 100% VoIP. The good news? With all of that abandoned copper waiting to be repurposed, we might see 100 Mbps DSL thanks to line aggregation.