Microsoft Skype buyout official

That's a high price to pay for a company offering free calls. My view is that one of the primary assets they are buying is the video calling and video conferencing technology, in anticipation of a dramatic increase in video calling in the near future.
 
The market value of a company isn't solely determined by the revenue the company makes directly from its consumers - that's one thing I've recently discovered. Facebook offers free services too, yet it's worth billions... I think Skype's acquisition has that in common to a degree. Skype holds the monopoly for that type of commercial VOIP and has millions of active users at their reach via it - if Microsoft and Nokia can keep that to themselves the way Apple have been stingy with their patents in their own right, then it's hardly a bad acquisition if you ask me
 
That's a high price to pay for a company offering free calls. My view is that one of the primary assets they are buying is the video calling and video conferencing technology, in anticipation of a dramatic increase in video calling in the near future.

According to their submission to the USA Securities Exchange Commission on 4/3/2011, their annual net revenue was $ 860 million
 
Mobile VoIP is the future.
Verizon partners with Skype for mobile VoIP

And that's why I'm in favour of wireless local loop unbundling in this country. LTE networks will make mobile VoIP a reality, but it's a direct threat to mobile network operator’s current business models and revenue streams. Vodacom, MTN, CellC etc. make huge profits in this country from the rates they charge for voice calls. They charge R1/2 per minute; on Skype you use approximately 500KB of data per minute, on a 2GB data bundle from Vodacom, that's 8.5 cents per minute. That's a cost saving of about 96% to the consumer, or should I say a 96% loss in revenue for the network operators.

Thing is, Vodacom and friends are going to do everything in their power to protect these revenue streams. Mobile VoIP will eventually be inevitable, but we won’t see the 96% cost saving, the network operators will have to offset the loss with a new revenue stream (ie. paying a premium for mobile VoIP and 4G).

Although not yet enforced, I know Vodacom has already put safeguards in place which allow them to either block all VoIP traffic or charge R25 per MB! Ridiculous!
 
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