Saturday 16 March 2013

Are Facebook Soon to Dominate the Voip Industry?

By Saul Saresi


The all conquering social network has set its sights on the world of Voip by announcing plans to enter the marketplace and challenge the dominance of Skype by providing a much improved and more versatile, free OTT platform to its users.

In the past 10 years since Skype first entered the Voip marketplace, their have been several challengers made to its throne from the biggest industry players, ranging from Google to MSN, but none have been able to tempt customers away from Skypes incredibly popular business model.

But that was before the almighty Facebook came along - surely the most well placed and resourced company to offer a serious challenge to Skype's market dominance. The book will soon have reached 1 billion users, with approximately half of all users accessing the site via their mobile phones on a regular basis.

A platform which, for most of its users, is already the primary place to interact and connect with others online. It also has a host of other advantages too, such as a phonebook and a host of most user-friendly features, such as pictures and videos.

Advantages that could well lead to them overtaking Skype at the top of the tree. But lets not get ahead of ourselves, there is a long way to go before we arrive at any risk of market leadership changing hands. One thing that bodes well for the book should they get to the top of the tree is that Skype's advertising model has already proven itself far more profitable.

Presently, Skype's paying users currently spend an average of $100 per year on Skype Out (Skype's premium service) and other services, compared to Facebook's advertiser revenue for Europe and North America (from where it gets almost all of its advertising) of less than $10 per user.

And so it seems that the door has been left well and truly open for Facebook to re-invent the world of Voip communications by creating an entirely new communications experience that incorporates a wide range of options and features not currently available. But as to whether or not Facebook will be able to de-throne the mighty Skype - especially after their acquisition by Microsoft - remains to be seen.

So whatever allegiances you may have toward one company or the other, it seems certain that many great offers will be coming the way of the consumer in the coming months and years in a bid to tempt their business away from the competitor. And with the Voip market continuing to grow year on year, this battle could continue for many a year.




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