Talk is rife with the stated wishes of telecom-based broadband Internet access providers such as AT&T, Verizon and BellSouth to impose or negotiate surcharges for high-bandwidth content and services such as VoIP.
But rather than the looming battle over net neutrality that many (including yours truly) and I predict in Congress, the FCC and the Courts, the issue may be rendered irrelevant by data compression technologies.
I’m talking about new technologies that, in effect, will rearrange packet-consuming applications down to chunks of a size so manageable that big, established carriers might not be so insistent on extracting extra fees for carriage of those big, bad bits.
That’s the vision held by a key VoIP industry figure whose company churns out some of those bits that the big telcos want to charge extra for.
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EBay just reported its earnings, and while rest of the data doesn’t intrigue me as much, the Skype data is pretty telling. In the 78 days eBay has owned Skype, the company did sales of $24.8 million. No mention of profits in the press release, but they do point out that nearly 87% of the total sales are from outside of the US. At $24.8 million over seventy eight days, it works out to about $116 million, a shade ahead of $100 million annual run-rate they hoped for when the SkyeBay deal was announced.
Looks pretty good, unless you start slicing and dicing it differently. That’s about $318,000 a day in sales for Skype. Being snarky for a minute, at that rate, the sales-to-deal-price ($2.6 billion) parity will take about 8176 days. Roughly 22 years!
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As cost to run these companies increases due to marketing expense, it seems that there is enough margin in the cost of minutes to find lower and lower prices. Now Yak has lowered the bar by rolling out a $19.99 a month plan.
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