Skype Claims VoIP Lead

June 20, 2005

Skype holds the number one spot in the VoIP usage market, according to a web traffic analysis by Sandvine a broadband management provider.

Skype holds a 46.2 per cent market share in North America giving the provider a clear lead over other providers like AT&T Callvantage, Vonage and Dailpad (acquired by Yahoo last week).

The number two spot is hotly contested between several of the other VoIP service providers.

Sandvine provides broadband equipment to internet providers and it is their equipment that regulates the traffic for over 20 million broadband internet subscriber’s worldwide.

Although the comparison between Skype and other VoIP providers is a fair method to identify powers in this market, Skype chief executive Niklas Zennstrom told vnunet.com that the company does not consider Vonage and AT&T competitors.

Currently, Vonage and AT&T offer a telephone replacement service. Users plug a VoIP adapter into a traditional telephone and on the other end they connect to the internet.

In contrast Skype has developed a software platform for a number of devices, ranging from desktop computers to handhelds and special Skype enabled handsets.

According to Zennstrom, Skype aims to provide a personal communication service users can use in addition to their phone line.

"What Vonage does is the same as traditional telephony. We are offering a personal mobile communications service which comprises IP voice communications, instant messaging and file transfer. Voice communication is part of our offering, but not everything."

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