International Minutes

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

International Minutes

In the latest issue of Capacity magazine, there are a number of articles about the International long distance market. It seems Skype has swiped 14 Billion minutes of international from the carriers. Just so you know how big of a slice that is: TI Sparkle does 17B; TATA does 21B; and IDT and iBasis did 24B each. It didn't take long for Skype to catch the carriers either. [The whole pie is 300B minutes and $74B in revenues.] The profits are slim though, because international rates have been dropping steadily. International LD is a volume business that has been growing for years. That growth slowed down to 10% in 2006. At the same time, mobile originated international growth dropped from 24% in 2005 to 16% in 2006. (I have to wonder if that isn't due to more smartphones, which translates to more VoIP apps, so more International going to Skype or Jajah). It seems like every telco market is flattening out.

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