Rich Tehrani quoted in the Economist

Rich was quoted in the Economist (premium content) regarding the Skype/eBay deal. Here's an excerpt of the article since it requires a subscription: (Update, found the entire article here)

That is because Skype can add 150,000 users a day (its current rate) without spending anything on new equipment (users “bring” their own computers and internet connections) or marketing (users invite each other). With no marginal cost, Skype can thus afford to maximise the number of its users, knowing that if only some of them start buying its fee-based services—such as SkypeOut, SkypeIn and voicemail—Skype will make money. This adds up to a very unusual business plan.

“We want to make as little money as possible per user,” says Mr Zennstrom, because “we don't have any cost per user, but we want a lot of them.” This is the exact opposite of the traditional business model in the telecoms industry, which is based on maximising the average revenue per user, or ARPU. And that has only one logical consequence.

According to Rich Tehrani, the founder of Internet Telephony, a magazine devoted to the subject, Skype and services like it are leading inexorably to a future in which all voice communication, near or far, will be free.

| 0 Comments | 0 TrackBacks

Listed below are links to sites that reference Rich Tehrani quoted in the Economist:

Rich Tehrani quoted in the Economist TrackBack URL : http://blog.tmcnet.com/mt/mt-tb.cgi/16528

Leave a comment

Recent Activity

Friday

  • Tom Keating posted VoIP in Google ChromeOS
  • Tom Keating tweeted, "VoIP in Google ChromeOS: Google released their ChromeOS operating system yesterday. So naturally, as a VoIP fan I w... http://bit.ly/3T68Ox"

Thursday

More...

Recent Comments

  • precoz: I am wondering, if the VOIP market is still increasing read more
  • Dustin: But that's not the point at all. The majority of read more
  • commangerYEK: Nicely done! read more
  • bstella: How did you get an email address to write to read more
  • Paul: Hi Mike, For Cisco (and normal SIP) passive VoIP recording read more
  • redshirt6: Yes, dying to know if it worked! rs6 read more
  • bruno.clermont: SkypeOut work only if I added their phone number as read more
  • bruno.clermont: I just installed it and try to do some call. read more
  • Kris: Tom, I'm curious. Did you ever get any resolution on read more
  • dsi r4: This is the age of smart phone.Nimbuzz launches it's phone read more

Subscribe to Blog

Recent Entry Images

  • google-chromos-flaphone-voip.jpg
  • startech-conxit-tool.jpg
  • thanksgiving-turkey.jpg
  • verizon-island-of-misfit-toys.jpg
  • mindtouch-cloud.jpg
  • microsoft-windows-20-history.jpg
  • taylor-randall-the-price-is-right.jpg
  • fring-google-android-skype.png
  • gotomeeting-logo.gif

Entry Archives

Around TMCnet Blogs

Latest Whitepapers

TMCnet Videos