Will the Internet Kill the Phone Business?
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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
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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.
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Excerpts
About VOIP
VOIP encompassed all forms of voice communication using the internet voice-over-internet-protocol. This included pure computer-to-computer calling as well as the various hybrid states, such as a Skype user connecting to the traditional telephone network, or even two people talking on seemingly conventional phones that were linked, behind the scenes, via the internet. It also included residential VOIP providers who supplied their customers with adapters, so they could plug ordinary telephones into their broadband connections without using a computer...
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The Making of a Deal
Niklas Zennstrom and Janus Friis, the founders of Skype, had earlier founded (and subsequently sold) KaZaA, a peer-to-peer software company whose product many people used to share copyrighted songs. By mid-2005, Skype's prospects were looking distinctly bright...
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The Road Ahead
With cable operators already offering television and entertainment, as well as broadband access, there was every possibility that they might offer cheap telephony as well. This put the cable companies in a good position. Unlike the telecom operators, cable companies did not depend on voice for their revenues...
Exhibits
Exhibit 1: Skype's Worldwide Subscribers
Exhibit 2: % of Revenues Derived From Voice |
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