Monday, 18 March 2013

Facebook to Enter the Voip Marketplace

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.

Since Skype entered the Voip marketplace 10 years ago it has ruled without rival, fending off challenges to its throne from competitors such as Google Talk, MSN and Microsoft. But Facebook are without doubt the best equipped - and most threatening - platform to challenge Skype's superiority.

However, of all the companies to have attempted to encroach on Skype's dominance, Facebook are certainly the most well equipped and well placed to do so. And it would seem to be a logical progression for the book to enter the Voip marketplace and take advantage of the platform already in place.

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.

It is indeed very plausible that Facebook will, in a short space of time, be able to match and surpass Skype's revenues, considering that Skype's premium model has already proven itself to be significantly more profitable per user than Facebook's advertising model.

And when i say far more profitable, i really mean it. Figures show that Facebook presently generates, on average, less than $10 per user per year in revenue. Compare this to Skype's advertising model which results in users paying an average of $100 per annum, and the difference is immense.

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.

But whoever proves themselves to be the king of the OTT platform, it will not happen overnight, and the other will certainly not give up the fight without a damn good reason. And with incredible profits on the table for the winner, this battle could be raging for many years to come.




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