Will the Internet Kill the Phone Business?
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : MISA001
Case Length : 8 Pages
Period : 2005
Pub Date : 2005
Teaching Note :Not Available
Organization : -
Industry : Telecom and Broadband
Countries : Global
To download Will the Internet Kill the Phone Business? case study
(Case Code: MISA001) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges
»
Miscellaneous Case Studies Collection
» Miscellaneous Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Introduction
|
In 2005, "Voice over internet protocol" (VOIP), was threatening the business models of incumbent telephone service providers. VOIP enabled people to make free calls to other Skype users over the internet, and very cheap calls to traditional telephones. The threat of VOIP looked more real than ever, when on September 12th 2005, eBay, the leading online auction-house, announced that it was buying VOIP's leading proponent, Skype for $2.6 billion.
eBay, mentioned it had plans to use Skype's technology to make it easier for
buyers and sellers to communicate, and to offer new "click to call"
advertisements.
|
|
$2.6 billion seemed a vast sum to pay
for a company that had only $60m in revenues and had yet
to turn a profit. Yet eBay had not been the only company
interested in buying Skype. Microsoft, Yahoo!, News
Corporation and Google had all considered the idea.
Whatever the merits of the deal, the acquisition of
Skype had highlighted the significance of VOIP, and the
enormous threat it posed to incumbent telecom operators.
Skype, which had over 54m users, had received the most
attention, but other firms routing calls partially or
entirely over the internet had also signed up millions
of customers...
Excerpts >>
|
|
