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Technology Stocks : SONS
SONS 7.830+2.8%Nov 28 4:00 PM EST

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From: Home-Run12/14/2006 8:15:59 PM
   of 1575
 
2007: The Year of VoIP?

Skype, now owned by eBay (EBAY), announced SkypeOut yesterday, which offers 12 months of unlimited Skype calls to any phone within the US and Canada for a flat annual rate.

The plan will work as follows:

People who sign up for the new plan before January 31, 2007 will receive a special discounted introductory rate of $14.95 per year, 50% off the regular price. While Skype to Skype calls will remain free, the new Skype Unlimited Calling plan is an easier and cheaper way for growing numbers of SkypeOut users to stay in touch with friends and family over any phone line. Consumers can also choose SkypeOut as a pay-per-minute offering.

According to Skype's press release, it is the leading Internet voice calling solution in North America, with 11.9 million registered users, as of the end of September.

Supposedly, as measured in November, Skype is the most popular residential VoIP service (29%) among the more than one-in-five (21%) U.S. telecommunications consumers already using VoIP at home. Also, another 13% of U.S. telecommunications consumers plan to adopt VoIP technology within the next 12 months, which means that by the end of 2007, 1 out of 3 consumers will be using VoIP.

From an investment perspective, a big beneficiary of the movement to VoIP will be Level 3 Communications (LVLT), since it provides the infrastructure to Skype. Another beneficiary could be eBay, Skype's owner.

posted by Theflyonthewall.com at 7:17 AM | 0 comments links to this post
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