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

Phil Wolff

I edit Skype Journal.

Here’s what I know about today’s announcements.

Let’s start…

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

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

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

Most Skype calls are international.

Skype likes that.

Skype makes money on SkypeOut.

And international calls spread the word.

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

What else can Skype do to grow?

What new user behavior can they encourage?

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

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?

Skype Pro plans Flat fee – one year Unlimited free SkypeOut calls in your country 17 January 2007 Skype Journal

Flat fee – one year

Unlimited free SkypeOut calls in your country

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 sweetens the deal

free voice mail

discounts on other Skype services

deals from Skype partners

Skype Pro plans Skype-to-Skype calls are still free Pay for SkypeOut outside your plan's country 17 January 2007 Skype Journal

Skype-to-Skype calls are still free

Pay for SkypeOut outside your plan's country

In another country for a while? Your in-country SkypeOut is free Your cross-border calls are charged Skype Pro Roaming

In another country for a while?

Your in-country SkypeOut is free

Your cross-border calls are charged

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

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 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

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

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

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.

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

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

Keeps customers Annual plans create lock-in , add switching costs Cuts customer defection or abandonment Strong defense

Keeps customers

Annual plans create lock-in , add switching costs

Cuts customer defection or abandonment

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

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

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