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Free Phone Calls Will Soon Become A Reality

Earlier this month, I told you about eBay's major purchase of Skype, the Internet voice service that allows you to make free voice calls via your computer. At the time, I predicted the possibility that traditional phone services might even be free at some point down the line. I wasn't the only one thinking about that...

During last week's conference call to stock analysts, eBay CEO Meg Whitman admitted her company's purchase of Skype was a bold move by her company in that direction. By combining online payment systems, Web-based communication and electronic markets, eBay can become a market leader in those businesses.

Moreover, eBay believes Skype's great growth will drive down voice communications costs -- over the next three to six years -- down to nothing. Here's how: eBay oversees Skype as well as the dominant payment service (PayPal) consumers use to purchase minutes and buy and sell products in its electronic marketplace (68 million active users).

If you haven't considered Skype before, and you have a broadband Internet connection in your home and friends and family in other parts of the world, it's certainly worth checking out.

Yahoo News October 20, 2005

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