Skype has recently announced a new global unlimited calling plan that will all allow calls to landline telephones in 34 countries for a monthly subscription fee of $9.95. This is the first time that Skype, which is owned by eBay Inc., has attempted to compete globally with the big US telecommunications companies such as AT&T.
The new calling plan will allow calls to most European nations and Canada, as well as Singapore, Japan, Korea and Malaysia, among others. Users can even call cell phones in some countries, most notably China, Hong Kong and Canada.
Traditionally, Skype has required users to run a software program and use their computer speakers and microphone to place calls. But under the new plan, subscribers will also be able to place some calls from their household telephone or mobile phone, and pay only a local access charge.
Skype’s new direction puts them in direct competition with companies like Vonage, a company which already uses high-speed Internet bandwidth to place calls. But unlike Vonage, the majority of Skype calls are still made using computer software, and even with the new plan, the company expects the majority of their billed minutes will be from computer to computer communications.
Skype has become very popular over the last five years as high-speed Internet access has become more common throughout the world, but there has always been a certain “geek factor” to their service. In other words, only technologically savvy consumers have generally been comfortable with the idea of placing phone calls on their computer.
Additionally, user surveys consistently find that consumers perceive computer-based phone calls to be less reliable than those using a standard landline telephone or cell phone. Skype has attempted to overcome this “technology barrier” by making their software and calling procedures as user-friendly as possible. Still, some users have had trouble with the software, most notably those who have recently upgraded to Windows Vista from XP.
And there’s also the question of bandwidth restrictions. Skype users connecting to the Internet through wireless connections often report “echoes” or a delayed signal when attempting to make a call. While this is not a limitation of the Skype software itself, it does affect the Company’s perceived reliability in placing calls — something critically important to consumers.
But with Internet bandwidth on the increase worldwide, Skype is hoping that more consumers will feel confident using the computer to place calls. And by including regular landline phone calls in their new calling package, they may be able to attract customers who didn’t feel technologically savvy enough to use the Skype service in the past.
