pricing

A lot of die-hard Skype fans worry that Microsoft’s acquisition of the company is going to change it, and not for the better.  Yesterday’s news that Skype For Asterisk will be discontinued didn’t help, generating speculation that this action is a result of their impending acquisition.

Before we rush to declare the “Micro-Skype ApocalypseTM”, let’s consider a few facts.

Skype has two very similar competing offerings in market that will allow an Asterisk PBX to connect to the Skype Network – Skype for Asterisk and Skype Connect.  One (Skype for Asterisk) sells for a very low one-time license fee, and the other (Skype Connect) sells on a subscription basis with additional charges for minutes of usage.  Skype Connect must be dramatically more profitable than Skype for Asterisk.

Skype for Asterisk has issues that limit its use in business.  For example, it can’t forward a call from the PBX without stripping caller ID.  How do you build a modern call center without caller ID?  Those in the know say that this is a limitation of the Asterisk channel driver, and not a Skype limitation. After all, Skype Connect doesn’t have that limitation. It appears that Digium may not have given the priority to Skype for Asterisk that it needed to be successful.

The business fundamentals don’t favour Skype for Asterisk.

Moreover, the agreement with Microsoft doesn’t come into effect until it has cleared regulatory approval.  Skype would be foolish to make decisions about apparently important partnerships solely at the behest of their new owners before gaining regulatory clearance.

Granted, Microsoft competes with Digium.  But business fundamentals, as opposed to Microsoft influence, are a far more likely reason for Skype’s decision not to renew the Skype for Asterisk agreement with Digium.

Sometimes it just makes sense to sunset a product that isn’t working out.

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I was feeling my oats yesterday when I twittered a CBC piece on the high cost of mobile service in Canada.  The CBC piece struck a nerve, as I had just read Andy Abramson’s comparison of US and European mobile operators approach to service.  I have to say, I had no experience like Andy’s last year trying to buy voice and data SIMs throughout Europe.  It was easy in Germany and Spain, horrid in Austria, the Czech Republic and Denmark, and I had given up by the time I reached the Netherlands. Voice service wasn’t hard to get in those places, but prepaid data?  Fuhgeddabout it!  Nevertheless, I’ve not had great experiences with our local carriers ability to service the customer either. 

In any case, Mark Goldberg swiftly missiled off a piece of email to me this morning saying:

The CBC story you linked to is 2 weeks old.
I have written 5 blog posts that discredit the OECD study… according to the OECD, US rates are the worst – worse than Canada in all categories… do you really believe that?
Check out:
http://mhgoldberg.com/blog/2009/08/unravelling-oecd-flaws.html
http://mhgoldberg.com/blog/2009/08/ctia-letter-refutes-oecd.html
http://mhgoldberg.com/blog/2009/08/cost-of-free.html
http://mhgoldberg.com/blog/2009/08/canadian-wireless-data-leadership.html
http://mhgoldberg.com/blog/2009/08/oecd-study-needs-reality-check.html

Oops.

It’s actually true, in my opinion, that Canadian rates have fallen and become very competitive.  Two years ago I spent $500 to $700 per month on  mobile service with Rogers, with one phone.  Today I buy service for 4 phones and a USB data stick, all with generous 3G data plans plus 16Mb/s home internet for about the same price as I paid two years ago for a single phone.

I don’t believe the OECD study any more than Mark does.

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MOBIVOX criticized for new pricing

June 9, 2008

Yesterday’s weekend of driving was bonkers – 17 hours in total. When I arrived home last night, I was looking forward to a relaxing wind-down with a glass of wine, and catching up on the latest BattleStar Galactica, which the DVR had recorded for me Friday night. The promo trailers had been promising “all will [...]

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Good News for Truphone Subscribers

March 28, 2007

Truphone has exended their North American price promotion through to the end of June.  That's free phone calls to landlines, including internationally.

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AT&T Unity: Big deal, or just big news?

January 20, 2007

AT&T’s Unity was the big news yesterday.  It’s a pricing plan that makes it possible to for AT&T Wireless customers to call AT&T Landline customers for free, without incurring any wireless minute charges. They can already call other AT&T Wireless customers for free.  Now the deal has been extended to landline, and you get a unified [...]

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The Meaning of Free Speech

September 16, 2005

The Economist uses EBay’s acquisition of Skype as a jumping off point to discuss a number of issues, including the vulnerability of traditional telecoms pricing models to VoIP.  According to the Economist, Niklas Zennstrom’s vision for Skype is "to become the world’s biggest and best platform for all communications—text, voice or video—from any internet-connected device, whether [...]

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