World VoIP NewsVoIP costs of Skype: what is the next?VoIP costs of Skype: what is the next?

VoIP costs of Skype: what is the next?


VoIP costs of Skype: what is the next?
Skype is looking forward to raise up to $100 million in an initial public offering, in accordance with Form S-1, provided to U.S. Securities and Exchange Commission.
The company will be selling American Depositary Shares (ADSs) and will trade on the NASDAQ Global Market. The Skype’s offering will be managed by Goldman, Sachs & Co., J.P. Morgan and others. Skype announced that it plans to augment its business by adding users, offering premium features like group video chat, enlarging the amount of business users that log in to its service, and adding extra revenue models, such as ads. This will impose additional VoIP costs pitch and falls on all Skype products in near future.Skype has grown significantly over the last year to 560 million users registered at the end of June from 397 million since 2009. The number of connected users has increased substantially as well, with monthly users increasing to 124 million from 91 million in the past year. All this growth has resulted by very considerable increase in revenues. Skype boasted having $406.2 million in the first six months of this year, up 25 percent from $324.8 million in the first half of 2009.

But what will be the next path of Skype in sense of VoIP costs to bear? The company definitely looking forward to expand its user base, both free and paid customers. But looking at the S-1 form, anyone can see the clear intentions to move upmarket to business users to acquire small and medium-sized businesses that need video chat and collaboration tools but can’t afford top-end video conferencing or telepresence equipment.

Skype also declares the plans to enlarge number of paying consumers in options of voice calling and video chat by adding a set of premium features, such as group video chats. Skype is probing the multi-user video chat feature in the latest beta version and looking forward to start charging for the ability. In the S-1 form Skype says it “can generate more communications revenue from our users by improving awareness and adoption of [its] paid products and introducing premium products such as group video calling.”

In frames of VoIP costs incremental changes philosophy, the company also hopes to find path for better monetizing current free calling and video chats, adding new models such as advertising to do so. From the S-1 filing: “We currently generate a small portion of our net revenues through marketing services (such as advertising) and licensing, which we expect will grow as a percentage of our net revenues over time.” As a final result of such an attitude, users that don’t pay for premium features can expect to see more ads shown alongside their video chats.

Skype has demonstrated impressive growth in revenues over the past year, and it will be necessary for the company to make some cash hone from its video chat platform. Currently video chat takes about 40 percent of all calls made through Skype software, but most of revenues appear from SkypeOut landline and mobile calling business. Skype should monetize its large and growing base of video chat users by really billions of dollars, if it wants to ripe VoIP costs potential.


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