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Skype Journal's guide to Skype's new rate announcements

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Skype announced three changes to their rate structure. Phil Wolff, editor of Skype Journal, explains them.

Skype announced three changes to their rate structure. Phil Wolff, editor of Skype Journal, explains them.

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  • Full Name Full Name Comment goes here.
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  • This looks like a great deal! I am exactly the consumer you describe (use skype for international calls). And a flat fee for unlimited calling is pretty tempting...
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  • May 26, 2009

Skype Journal's guide to Skype's new rate announcements Skype Journal's guide to Skype's new rate announcements Presentation Transcript

  • Skype Journal’s plain guide to the 17 January 2007 Skype rate announcements by Phil Wolff
  • Hi. I’m Phil.
    • Phil Wolff
    • I edit Skype Journal.
    • Here’s what I know about today’s announcements.
    • Let’s start…
    17 January 2007 Skype Journal
  • Skype charges 4 cents every time you connect to the phone network
    • 0.039 Euro or local equivalent
    • Costs about 2 minutes of SkypeOut credit
    • For using SkypeIn or SkypeOut
    • Not applied to domestic calls in US+Canada Unlimited Calling Plan or UK’s Talk for Britain
    Connection Fee
  • Skype Pro: One Year of Same-Country SkypeOut for a Flat Fee
  • Skype owns cross-border calling
    • Most Skype calls are international.
    • Skype likes that.
    • Skype makes money on SkypeOut.
    • And international calls spread the word.
    17 January 2007 Skype Journal
  • Time to kick virality into gear
    • What else can Skype do to grow?
    • What new user behavior can they encourage?
    17 January 2007 Skype Journal
  • Local calling brings in your social network
    • Most Skype users still use their phones to call locally. Family. Friends. Work. School. Stores.
    • How can Skype get you to use their network for local calls?
    17 January 2007 Skype Journal
  • Skype Pro plans
    • Flat fee – one year
    • Unlimited free SkypeOut calls in your country
    17 January 2007 Skype Journal
  • Skype Pro plans
    • Skype sweetens the deal
      • free voice mail
      • discounts on other Skype services
      • deals from Skype partners
    17 January 2007 Skype Journal
  • Skype Pro plans
    • Skype-to-Skype calls are still free
    • Pay for SkypeOut outside your plan's country
    17 January 2007 Skype Journal
    • In another country for a while?
    • Your in-country SkypeOut is free
    • Your cross-border calls are charged
    Skype Pro Roaming
    • Australia, Austria, Belgium, Brazil, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovenia, Spain, South Korea, Sweden, Switzerland, Taiwan, the United Kingdom
    Skype Pro Available in “a few weeks” in 24 Countries
  • Skype Pro is a little unfair
    • The flat rate for bigger countries will be the same as for smaller countries.
    • But most in-country calls are around your home town anyway
    17 January 2007 Skype Journal
  • 9 More Regions get the Global Rate (1.7 cents/min)
  • Call these places for 0.017 € per minute
    • Czech Republic (including Prague), Guam, Hungary (including Budapest), Israel (including Jerusalem), Luxembourg, Malaysia (including Kuala Lumpur), Puerto Rico and both Alaska and Hawaii in the United States.
    17 January 2007 Skype Journal
  • So What? 17 January 2007 Skype Journal
  • Good for Skype viral growth
    • Less thinking (Lower cognitive burden): Don't worry about the cost of calls for a whole year
    • Skype's experience shows people with flat-rates start to switch calls to Skype
    • More calls to more people = more word of mouth
    17 January 2007 Skype Journal
    • Keeps customers
    • Annual plans create lock-in , add switching costs
    • Cuts customer defection or abandonment
    Strong defense
    • Handset phones with a Skype Pro plan will feel more like local phone service
    • “ Unlimited calls” or “flat fee” is an easier sale in retail
    Good for hardware partners
    • Skype
    • http://skype.com/products/skypepro/
    • Skype Journal
    • http://SkypeJournal.com
    More info