News

Skype's Bubble Set to Burst

The Skype bubble appears to be bursting following news that VoIP services provided by ISPs have recently taken the lead in Europe’s internet telephony industry, with a 51.2% market share.

Skype, which previously held the top position, has lost ground to these services, with a share of 45% of total minutes used. Vonage, meanwhile holds less than 1% of the market, while all other VoIP providers have 3.5%, combined.

A similar situation is taking shape in North America, with cable and ISP companies now occupying 53% of all VoIP minutes. Vonage is a clear but distant second with a 21.7% share, while Skype trails with 14.4%, and all others account for 10.9% of usage.

The increasing trend toward ISP is likely due to the benefits of bundling with other services like internet access and cable TV. Customers are much more likely to try a service if it’s provided by a company that they already deal with and trust.