9 thoughts on “2005 – Year of the Broadband”

  1. I find it amusing that you find the skype deal head scratching, then lay out almost every reason why it’s not.

    The fact is, voice WILL be free, and skype is the market leader. I guess the fact the ebay is the buyer is headscratching, but the metrics of the deal make so much sense… I think that in 6-12 months, people will be talking about the genius of this deal. Skype, in my opinion, was the #1 acquisition target of 2002-2005.

  2. the reason skype deal is head scratching is because of the money involved. i don’t think the $4 billion price tag makes sense. anyway i have my opinions on this, and you have yours.

  3. and just as an aside, the people who are driving the cost of voice to zero: pipe owners with no legacy business. because they are the ones who can afford to do it. unlike skype which is a parasitic service that can be choked at the will of the carriers/users.

  4. “…unlike skype which is a parasitic service”

    Om, shirley you don’t mean to imply that Yahoo, Google, Bittorent, or heaven forbid all blogs are parasitic? (well maybe bittorent…)

    Do the Cablecos consider CNN, ESPN, MTV parasitic?

    Who pays who in that arrangement, and what makes anybody think the internet distributor-content provider relationship will be upside down?

  5. charlie, as you rightfully point out, there are “payments” when it comes to CNN/ESPN etc. not parasitic in any sense. pipe owners are making money. anyway that is the problem Skype has. it uses the infrastructure but doesn’t really share the spoils as of now.

  6. I think you’re wrong Om. Without services like Skype and P2P, why would anyone pay $40+/month for broadband? If all you are going to do is e-mail and surf, dial-up or the cheapest tier of DSL is good enough. The pipe owners owe just as much to Skype et al as oil companies owe to SUV producing car companies.

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