Skype replaces free U.S. calls promotion
December 14th, 2006 - Posted in VoIPSkype is introducing a $30 annual subscription to make unlimited calls with the Internet-based telephone service to any regular or mobile phone number within the United States and Canada.
The new calling plan being announced Wednesday comes as Skype phases out a promotion launched in May allowing unlimited free calls in those two countries.
Skype, acquired last year by eBay Inc. for $2.6 billion, is offering a half-price promotion on the new SkypeOut plan until the end of January, charging $14.95 for 12 months of calling instead of $29.95.
The regular price for using SkypeOut in the United States and Canada is 2.1 cents per minute. The charges for calling non-Skype phone numbers in other countries vary widely, starting at roughly 2 to 3 cents a minute to many major European and Asian nations. Users can also pay for SkypeIn service to receive calls dialed from regular phones.
Skype has never had an unlimited calling plan before, and for now the new offering is not being launched in other nations where the free in-country calling promotion is also set to expire at the end of December.
The company declined to discuss what impact the new strategy might have on revenues. Management recently estimated this year’s revenue would total $195 million in 2006, roughly in line with the $200 million level projected last year at the time of the eBay deal.
Skype calls are connected over a high-speed Internet connection using either a personal computer, a growing number of cordless handsets configured to communicate directly over a broadband modem, and certain cell phones with Wi-Fi capability. Each user has a Skype ID and can call other Skype users for free.