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Is Citron Nervous About Skype?
by
Mark Evans
on Fri 17 Jun 2005 02:58 PM EDT | Permanent Link
Russell Shaw has a good post about Skype and its domination of the North American VOIP market - from a minutes and bandwidth perspective. An interesting element are comments by Vonage CEO Jeffrey Citron. Citron dismisses Skype as an "ancillary service", rather than a direct rival. His rationale is that Skype is not a replacement for your home phone, and “what Skype does is allow you to make a cheap telephone call using your PC -- so as an ancillary communications provider, who are they impacting? They are certainly not impacting Vonage." Citron's comments are a surprise given he's a classic salesman on an entrepreneurial mission towards an IPO or acquisition, but he seems to be conveniently overlooking the fact millions of people are using Skype, and Skype is starting to generate more revenue from premium services. For people on the cutting-edge, Skype could easily be a home phone and an alternative to Vonage if they use SkypeIn, SkypeOut and SkypeVoicemail.
Comments
Re: Is Citron Nervous About Skype?
by
Andrew
on Fri 17 Jun 2005 05:02 PM EDT | Profile | Permanent Link
He should be nervous - When Voice becomes free and just another application on the network (which is happening) and you own a startup that first and foemost is in the business of cannibalizing 100 year old technology with the same product in a different wrapper with no innovation or leading edge concepts (PoIP) - VC will start to sweat and ask questions. Skype penetration in the US is still small, compared to other countries and it is already having an impact. When they release Video and a business product, watch out.
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