Skype / Vonage Negative Economies of Scale?

by alec on October 20, 2005

The Stalwart Blog argues that Skype’s business model will erode as more people sign up for it.  Calls between Skypers are free, after all!  True, but Skype’s business model is to monetize services associated with that free network.  The metered minute arbitrage play is temporary – a diversion on the route to becoming the de-facto web platform for voice.

Alec Saunders is the Vice President of Developer Relations for BlackBerry maker Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.

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