BusinessWeek is reporting that Skype will soon release a mobile phone overseas. Code named the "White Phone", Skype has partnered up with iScoot to develop the software for cellphones. The cellphone will enable users to call other skype members for free, and call non-members for a small fee. What's most promising about this model is that Skype's international rates are miniscule compared to traditional cell phone companies, meaning that Skype may find its competitive advantage in customers who call internationally. The phone is web-enabled, and is being released in Europe, Asia, and Australia, with no immediate plans to be released in North America.
This may be the product that will help a floundering Skype generate more revenue, as eBay has recently reported that Skype is not holding up its own weight. eBay has even admitted that it overpaid $1.4 billion for the Skype acquisition two years ago.
Read more about it here:
http://www.businessweek.com/technology/content/oct2007/tc20071017_423595_page_2.htm
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