Skype Back on a Roll

Looks like Skype is coming back into the spotlight as lower prices for Internet telephony service are causing some people to wonder whether VOIP will eventualy be free. A story in the International Herald Tribune quotes FCC chairman Michael Powell as saying “he knew it was all over when I downloaded Skype”. In conversations I've had with telecom consultants and executives, there is a growing notion that carriers and cablecos will simply bundle voice with other services and it will become indiscernible as a “business”. While I'm loathe to dismiss Skype, I increasingly believe features will cause people to pay for Internet telephony as opposed to cheap or free long-distance. The money will be in compelling value-added services that are simple to use. If Vonage and AT&T's CallVantage want to be viable in the long run, they should stop bashing each other over price, and start telling consumers about their cool features.