Comments on: eBay: What to do with Skype?

The auction king is forced to reassess the value of the company it acquired for $2.6 billion--and its larger strategy for making money with VoIP.

[nicmart]

A business model problem

As least in respect to the Mac version, the Skype business model
also doesn't include attention to product quality. The authors seem
to take sadistic pleasure in cooking up goofball ways for Skype to
behave.

[ZenWarrior]

You're right...

Agreed. Many of Skype's present troubles may well come from a "What are those irritating things called customers?" attitude I experienced two years ago, but have become better since the acquisition by eBay.

Skype alienated many a possible new user by truly not giving a damn about customer service or satisfaction. And unfortunately, although less, that mindset still sometimes seems to prevail.

(This may be difficult to confirm given Skype often deletes negative postings to its forums. At the very least, my own critical postings are no longer there.)

[kai6novice]

What to Do? I will do... this with Skype

I think Ebay should immediately start a voice recognition department. Use the Skype voice data statistic to improve voice recognition system in different languages. Skype should ask the user to enter the first language they use in Skype. These data is the most valuable.

[sanenazok]

and then what

Wow a $2.6 bil voice recognition department. What should eBay do with a voice recognition department? Recognize voices, yes, but what else... Also, Skype doesn't have copies of voice conversations, the system is peer to peer so no central copies are made nor is knowing what language people are speaking on Skype is that valuable.

These ideas are the reason eBay has a problem now.

[Fat Drunk and Stupid]

BIG SURPRISE!

BIG SURPRISE!

Not.

2.6B seemed stupid 2 years ago.

2.6B seems downright criminal today.

Skype was and is, to some extent, a great VOIP program. Remove the ludicrous price tag and Skype is extremely successful.

And who didn't think that Ebay's ideas about Skype integration seem more than a bit off? I mean... what the hell? You're paying 2.6B so that you can integrate Skype into your auction site? What?!

I just hope that Ebay doesn't smother Skype in a futile attempt to squeeze 2.6B out of a service that was and is worth a fraction of the amount that they paid for the service.

Ebay would be much better off spinning Skype off and improving the Skype service than continuing to try to find ways to integrate Skype with their auction website. Where are the business features? Why not offer PBX features? Why not integrate Skype with Asterisk and sell phone service to businesses? Why not work on features that are not even possible for local telcos to compete against?

Oh well. Enjoy your swamp land.

[chuck_whealton]

Re: Big Surprise

I have to agree with you. This was one of those deals where you just KNEW it wouldn't make anything better on either side.

2.6 billion down the drain.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com

[fishpop]

Switching to Skype when Vonage is Shuttered

I'm a current Vonage subscriber, and I'm ready to make the jump over to Skype for their unlimited plans (plus hardware) if/when Vonage's patent woes force them to shut-down. I'd rather get my service from them, rather than going to a Bell, or worse yet, my cable company. I'm sure others will do the same. Hopefully eBay doesn't decide to do away with Skype becuase it can't attain some crazy valuation...

[Bill_A]

Even worse

Skype works even worse than vonage..and they'll charge you if you use it from outside north america, even if you have a north america unlimited plan...
As for ebay paying 2.6 billion dollars for skype, a fool and their money are soon parted. That has to be the most foolish acquisition price of my lifetime.

[Info_Max]

I hate to say but "I told you so", Callsite is better than Skype

When eBay announced the Skype acquisition I wrote that this acquisition would have been hard
to justify for $29Mill, set aside $2.9Bill.
Because the future of web based communication, well is web based. Which means solutions
that instantly run inside a web browser and do not require a separate download & installation.
I mean who the Hek wants to download a 30MB software to be able to call the owner of
the web site where the "call me via Skype button is embedded"!!! And what if I am changing PCs,say going from office to office or Internet cafe to Internet cafe, etc. So the right solution for web based voice communication is a voice communication capability which is totally web based and does not require separate download & installation, something like CallSite.

[ZenWarrior]

Skype-To-Go

What if you're changing PCs? You take your Skype account with you. Skype can easily be made entirely portable and carried on a single USB flash drive. When used with any computer, that computer becomes your telephone. I see it done every single day--by those with a clue.

[fpalacios]

Int'l calls from cell phone

We use cellular gateways combined with Skype to allow our employees to call the cellular gateway, access the PBX, then dial out internationally over VoIP. Our international people access the PBX through the IP connection on the gateway then go out the cellular side to cell users in the US. Huge cost savings.

[Bill_A]

Not compelling to pay

When I got a skypein number last year, it was $30. Now it is $70. Am I going to renew? NO. Overpriced.
Furthemore, the unlimited North America plan is fine..except if you happen to travel. Why am I going to pay by the minute if I happen to take my computer to Europe (and pay for the internet connection there)? They are not going to make money because they are not being fair, it is not reasonable and someone else is going to get the business.

[WJeansonne]

Skype Uses Your PC to Run it's P2P Network

That's why they are screwed for mobile, at least for now. Even if you aren't making phone calls Skype uses your PC to form and support its network. Why don't any of the writers just say that? Maybe they just don't know. Nothing is for free if it has any value, and Skype is not free as most people think. I don't want anyone using my computers for free which Skype is doing with its quid pro quo network.

[disco-legend-zeke]

P2P is the heart of free distribution. Once somebody needs a server...

Location Based routing techniques will permit unlimited roaming.

The next generation of digital communication is a full MIM0 mesh, a router on every rooftop. Using GPS location as a routing tool, allows mobile devices to be tracked and served seamlessly.

Because every device is connected to every device in sight, and messages are sent redundantly and randomy, radios that appear and dissappear merely drop the redundancy a bit. Think RAID for RF.

Unless they buy their own spectrum, they may need to partner with GOOGLE for 700 MHZ.

[thedreaming]

Skype

Never used it, not even once. I have nothign against it or any voip service, but everyone I know and interract with uses a cell phone and modern plans have free nights and weekends, free mobile 2 mobile and even free incomming calls. With such features, why would anyone want to be tied down to using a service which requires you to be in front of your computer to send and receive calls?

[Comresrch]

Cellular vs Skype

I respect all reader comments and opinions.

As president of a telecommunications management of
information systems business (TMIS) for a number of years I
believe Ebay is sitting on a virtual goldmine.

Recently I revisited the Skype voice over internet offering, signed
up for the service and gave it a try over my new Macbook laptop
computer which has a built in mike and video camera.

The service is really clear and easy to use as my first
conversation was with a business person overseas in India.
Additionally, I signed up for the unlimited calling plan to make
calls outside of the Skype to Skype network anywhere in the US
and Canada anytime of the day. I also plan to purchase other
Skype service offerings.

Many businesses have heavy calling patterns that occur during
the daytime when most of your cell phone plans offer limited
day minutes with exception of some carrier mobile to mobile
plans, yet many of us are with different service providers. You
have a few regional wireless providers who offer unlimited day
minute plans.

Regarding being limited to sitting at a computer to make calls
Skype now offers wireless internet handsets that now enable
calling without a computer providing you have internet access.

Wireless hot spots are being added daily in various locations and
the next bug push should be in the area of in building wireless
amplification for both voice and data with some sort of
universal signal standard to complete voice and data wireless
transmissions.

Skype will need to develop more enhancement services like multi
group video and voice conference applications for their new
SkypeCast service . There are many other service applications
they can add to their existing services.

[disco-legend-zeke]

Phone companies that degrade voice force providers to build network.

The Telecommunications act of 1996 was designed to permit concurrent growth of new technology, without harm to the telcos.

It allowed them to unbundle network elements. So if i just wanted a copper pair, i could rent it for $8. As these new services grew, the LECs panicked, and got federal mandates overturned.

A case in point, Las Vegas. Where COX and SPRINT simply refuse to lease unbundled fiber or copper.

Great Bean Counter type idea. Now the streats are all trenched by facilities based competitors. New york city has a company that just owns conduit. (i watched one section being built, it had 64 three inch pipes)

However, as pointed out in the article, the future is wireless because of the low installation cost. Hang a pair of $1500 off-the-shelf radios 10 miles apart, and you OWN a 20 MEG link.

Hang 10 $150 802.11N routers in your block, and EVERYBODY owns about 500 Megs.

Add GPS cascade routing instead of IP based Path-oriented routing, and you create a self forming, self healing network, owned entirely by the users.

Google already gets this, and there is nothing to stop other entities from bidding on that or other pieces of the spectrum. Al Gore could get elected on a platform of Public access to 700 MHZ. The cost of spectrum. OWNING spectrum is, well, like owning the air. Hey i want to bid on RED. anybody using RED light for signaling would buy a license from me. Today we know that 2.4 and red are the same... everybody can share red as long as they use beams, not broadcast; we now have the technology to produce dynamic, massively redundant, beams of RF. Its already working in 2.4 and 6.8, 700 MHz awaits only a sensible ruleset for operation.

There is nothing wrong with the old model, RF technology did not permit simple beam forming. The lowest cost alternative was a fixed dish.

I saw steerable dish stuff at a trade show.

Today, a virtual dish is created electronically, in the chipset, not just one but Many. I saw in operation a panel antenna/radio tha could do 200 WI-FI connections at the same time.

Tell your favorite candidate to pledge to stop the sale of red. After all, spectrum belongs to the people. Not the wealthy communications dinosaurs.

[RickNekus]

Re: eBay: What to do with Skype?

This was bound to happen, but un-surpriseingly,
SKYPE years ago provided the ability to replace the now 100-year-old antiquainted analog voice/phone system.-it also ran on almost every commercial or free PC/NetOS out there!

But, instead "FUD", thanks to (our) CRTC, not to mention FCC, AT&T, BELL,... Microsoft(...'cause proprietary MSN/Hotmail would have been gone!),...
prevented this
-the communications' Powers' that be sure didn't want this rearing its ugly head.
But then again, if Skype would have "really" succeded we'd probably also be driving fossil-fuel-free" cars, and not enslaved by Oil Companies/gov'ts...

So eBay is just another paperless tiger told what to DO -and in this case its "...GET RID OF THIS SKYPE..." -sad but ohhh so true.

[JayMonster]

And they wonder why usage is down!!

Like you, I was stunned when I saw the renewal prices. While they had a nice "leg up" on some of the other players in this area, it certainly wasn't by enough to pull off that big a price increase without people walking away. I mean, twice the price of Yahoo!Voice for a phone number? Did they not see that they would lose people?

[JayMonster]

This is what happens when you don't fix problems

Sure, Skype has tacked on some new toys like "Live" but they have done little to nothing to improve the base service or fix ongoing nagging problems with the core product.

On the Skype Out Side, the lack of Caller-ID, I think really hurts people using it. I know when I call people, I get repeated comments about my stupid caller-id number [phone], I mean, what is that? It makes me look like a telemarketer!

The Interface is still a bit kludgy looking and "old fashioned" and appears on the surface to be decades behind Yahoo!Messenger and MsnMessenger (or whatever the hell they are calling it this week at Microsoft). It is intrusive on your desktop in a way it shouldn't be.

It is also far too resource intensive even when idle. Could somebody perhaps do so omptimizations perhaps?

Yes, plenty of people have signed up for Skype, and I bet many of them still have it on their computers. But how often are they actually opening it?

[redking44]

Being fair?

Since when has business considered 'fair' to be a workable stratagem? They're just working out how hard they can get away withy screing you to thte wall.

As an aside, did you ever consider cellphone contracts to be "fair"?