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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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From: Frank A. Coluccio1/20/2007 11:13:07 PM
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How Low Can It Go?
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Skype, SunRocket Retarget Pricing
01.18.07 | Doug Mohney | VONMAG.COM

Skype (www.skype.com) and SunRocket (www.sunrocket.com) have announced new pricing plans that are likely to prove disconcerting for other VoIP providers.

Skype is rolling out a global pricing structure that includes a premium subscription plan - SkypePro - that will remove per-minute charges for SkypeOut calls to domestic landlines and instead include a simple setup connection fee. The new plan will initially roll out in Europe and proliferate worldwide during 2007. In addition, the global dialing rate to a number of countries has been reduced to 0.017 euros per minute to the Czech Republic, Guam, Hungary, Israel, Luxembourg, Malaysia, Puerto Rico, and Alaska and Hawaii in the U.S.

Connection fees will not apply to the Skype Unlimited calling plan in the US and Canada and the Talk for Britain campaign in the UK. For other countries/areas, the connection fee will be 0.039 Euros, plus whatever VAT may be applicable.

Meanwhile, SunRocket has focused its pricing plan on Asia, with $.01 per minute calling to China when a $199 Asia Pacific Edition of the SunRocket calling plan is purchased. The Asia Pacific Edition reduces international rates on all landline and cellular rates to $.01 per minute to China, Singapore and Hong Kong, and on landline calls to Taiwan, Malaysia, and South Korea. Landline rates fall to $.02 center per minute for Japan while rates to Vietnam fall to $.10 per minute. SunRocket's press release points out that the savings for the new rates can be up to 90 percent when compared to Vonage rates to China and 52 percent when compared to Skype.

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Skype Takes Internet Communications One Step Further With New Pricing Strategy

Disruptive pricing gives Skype users more value and choice.

about.skype.com

LUXEMBOURG, January 18, 2007 – Skype, the global Internet communications company, today announced its new global pricing structure which offers a simple, convenient and cost-effective way for consumers worldwide to call landlines and mobiles over the Internet. The new pricing structure complements the foundation of Skype’s success in letting anyone in the world talk for free, from one Skype software account to another.

The pricing structure is the latest in a series of new steps Skype is taking to give consumers a choice of easy-to-understand, value-based Internet communications packages. Initially focused on Europe, Skype’s new pricing strategy will roll out worldwide during 2007.

When launched in full, the pricing strategy consists of a premium subscription package (Skype Pro), one feature of which removes per-minute charges for SkypeOut calls to domestic landlines and includes a small connection fee.

“People like using Skype to make free calls from one Skype account to another but more and more they are choosing our paid for products that offer excellent value. As a result of this, we’re introducing a new pricing strategy today that will include a premium package. This premium package builds on the success we’ve had in North America and the UK with subscription-based calling promotions. It offers our users more for less because they can buy additional Skype paid for products but for a smaller cost,” said Stefan Öberg, General Manager, Skype Telecoms.

As a part of Skype’s premium package the global dialing rate to a number of countries is also reduced. The first phase of the SkypeOut pricing structure, effective from 13.00 CET on Thursday January 18th 2007, includes a reduction in global dialing rates to 0.017 € per minute for: Czech Republic (including Prague), Guam, Hungary (including Budapest), Israel (including Jerusalem), Luxembourg, Malaysia (including Kuala Lumpur), Puerto Rico and both Alaska and Hawaii in the United States.

For some countries, this represents a reduction of up to 65 per cent.

Skype also confirmed today that its previously announced connection fee rates, applicable worldwide, are now effective. The connection fee is a straightforward set-up charge per call. The Skype Unlimited Calling plan in the U.S. and Canada and the Talk for Britain campaign in the UK do not include a connection fee for national calls.

The connection fee is 0.039 Euro, excl VAT or the equivalent in local currency.

Today Skype users around the world can make free voice and video calls to any other registered Skype users as well as send instant messages, transfer files and participate in Skypecasts which are live moderated conversations with up to 100 people.

Skype users can also take advantage of Skype’s premium calling features, including SkypeOut™ (calls from Skype to traditional landlines or mobiles), SkypeIn™ (a number which can be called from a normal phone anywhere in the world) and Skype Voicemail (takes calls when users are busy or offline).

As the world’s largest Internet communications community, Skype is committed to giving its users the ability to set their conversations free at home, at work and on the move. It is focused on further developing its ecosystem of more than 50 hardware partners and more than 150 Skype-certified devices to broaden the appeal of Skype to a wider base of users who want to use Skype away from the PC, no matter where they happen to be. This is especially true for Skype users who want to take advantage of the mobile Skype experience, which is already accessible to more than 5 million Skype users on over 120 different Windows Mobile Smartphones and pocket PC devices.

For more information, please go to skype.com

Connection Fee Rates Rates Based on Currency* (excl. VAT)

* Australian Dollar (AUD) 0.059
* Brazilian Real (BRL) 0.09
* British Pound (GBP) 0.029
* Canadian Dollar (CAD) 0.059
* Danish Krone (DKK) 0.29
* Euro (EUR) 0.039
* Hong Kong Dollar (HKD) 0.39
* Japanese Yen (JPY) 4.9
* Norwegian Krone (NOK) 0.29
* Polish Zloty (PLN) 0.149
* Korean Won (KRW) 49
* Swedish Krona (SEK) 0.39
* Swiss Franc (CHF) 0.059
* Taiwan Dollar (TWD) 1.6
* US Dollar (USD) 0.039

*If your currency is not listed, the Euro rate is applicable

About Skype Skype is the world’s fastest-growing Internet communication offering, allowing unlimited free voice, video and instant messaging communication between users of Skype Software. With over 136 million registered users, Skype is available in 28 languages and is used in almost every country around the world. Skype generates revenue through its premium offerings such as making and receiving calls to and from landline and mobile phones, voicemail, call forwarding and personalization including ringtones and avatars. Skype also has relationships with a growing network of hardware and software providers. Visit Skype at www.skype.com.

Skype is an eBay company (NASDAQ: EBAY). To learn more visit skype.com.

Access to a broadband Internet connection is required for Skype and all Skype Certified devices and accessories. Skype is not a replacement for your traditional telephone service and cannot be used for emergency calling.
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SunRocket Asia Pacific Edition Shakes up Market with $.01 Per Minute VoIP Calling to China

sunrocket.com

$199 Annual, all-inclusive calling plan drastically lowers per-minute calling rates to 16 Asia Pacific locations

SunRocket, one of the nation's fastest-growing Internet phone service providers, today announced an unprecedented new calling plan that drops rates to Asia Pacific locations including China, Japan, Hong Kong and Vietnam to as little as one cent per minute.

The annual, all-inclusive $199 Asia Pacific EditionSM offers a compelling and unique alternative for U.S. consumers who frequently call friends and family located throughout the Asia Pacific. With per-minute calling rates well below traditional phone service offerings and as much as 90 percent less than other major VoIP providers, the SunRocket Asia Pacific Edition value proposition is unmatched in the industry.

"Prior to the SunRocket Asia Pacific Edition, consumers were forced to jump through hoops to seek savings on international calls to these destinations, often resorting to inconvenient and deceptively expensive prepaid calling cards," said Joyce Dorris, SunRocket co-founder and Chief Marketing Officer. "Now SunRocket makes it easy for consumers to enjoy the lowest per-minute rates to Asia, building upon our mission to change what is possible for consumers and challenge historical pricing practices by our competitors."

The Asia Pacific Edition reduces international rates to $.01 per minute on all calls (landline and cell) to China, Singapore and Hong Kong; and on landline calls to Taiwan, Malaysia and South Korea. Landline rates fall to $.02 per minute for Japan; while SunRocket's rate on all calls to Vietnam is cut nearly in half to $.10 per minute.

SunRocket Asia Pacific Edition Per-Minute Rates vs. Competitors
Country Type SunRocket Rate Vonage Rate Skype Rate Savings vs. Vonage Savings vs. Skype
China Landline+Cell $.01 $.10 $.021 90% 52%
Singapore Landline+Cell $.01 $.05 $.021 80% 52%
Hong Kong Landline+Cell $.01 $.04 $.021 75% 52%
South Korea Landline $.01 $.06 $.021 83% 52%
Taiwan Landline $.01 $.06 $.021 83% 52%
Japan Landline $.02 $.06 $.023 67% 13%
Thailand Landline+Cell $.03 $.08 $.062 63% 52%
Vietnam Landline+Cell $.10 $.35 $.329 71% 70%
Philippines Landline $.13 $.18 $.198 28% 34%

Additional destinations included in the Asia Pacific Edition are Brunei, Cambodia, Indonesia, Laos, Macau, Malaysia, and Mongolia.
* - All rates effective as of 12/21/06
† - Rates for SkypeOut Calling

"The Asia Pacific Edition is the first of its kind to bundle these countries together into one all-inclusive calling plan," added Dorris. "As the cost to providers for international calling continues to decline, it is unconscionable for phone companies to force customers into paying outrageously marked-up rates; and with SunRocket's Asia Pacific Edition, they no longer have to."

The $199 annual, all-inclusive Asia Pacific Edition includes unlimited free calling throughout the U.S., Canada and Puerto Rico. As with other SunRocket plans, customers enjoy enhanced voicemail, over a dozen free built-in calling features, enhanced 911 calling, plus the option to keep their existing phone number.

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