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An internet technology firm offering free and low-cost calls is posing a growing threat to traditional phone operators by expanding services for its next-generation users. Skype is one of the leading Voice over Internet Protocol (VoIP) companies that could contribute to a loss of €6.4bn to fixed line providers like BT, between now and 2008. Already the young company claims to have 12.7m users and is signing up 70,000 people daily to free downloadable software, available through a high-speed internet connection. Now the outfit intends to launch a video-over-IP service as part of an overall strategy to boost uptake in the UK that lags behind Germany and Sweden. “We can easily develop new services on top of Skype,” said Niklas Zennstörm, chief executive and co-founder of Skype. “One is video and we are expecting to deliver something next year,” he said, Zennstörm, who is also co-founder of Kazaa, the music download site, said a video calling facility has already been developed but is not yet complete. He believes the next step for his technology lies in smart phones, despite the company’s initial disinterest in popular IP phones over concerns about meeting industry standards. It is also expected new offerings, such as voice mail, will appear with small charges while calls to traditional landlines in Europe, North America and Australia are being charged at 1.1p. Industry sources say much of Skye’s success has been down to Zennstörm’s familiarity with internet technology and a ready-made army of tech-users from Kazaa, providing instant marketing. The high-speed roll out of broadband under BT has further helped growth of internet calling, just as the fixed line provider has suffered by people using traditional phones less. Mobile phone use has added to BT’s dwindling share of the voice market, just as the company is launching a comeback by rebuilding its network to send all voice calls over internet technology. Oct 20, 2004 Email this article Printer friendly page Previous Page
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