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International calls slowing

Posted by: Stephen Baker on December 10

When I took off for foreign countries in the ’70s and ’80s, I said good-bye and knew that I would not hear my family’s voices til my return—again unless somebody died. Foreign phone calls used to be an extravagance, something akin to watching movies in your own home.

Now I see from Telegeography that international calls have grown from fewer than 18 billion minutes in 1986 to nearly 300 billion (updated #) in 2006. But now the growth is slowing. Why? Skype.

According to TeleGeography estimates, Skype generated approximately 14 billion minutes of international traffic in 2006. “Skype only accounts for a small share of international calls. But they’re generating enough volume to have a clear impact on the growth rate of traditional calls,” said TeleGeography analyst Stephan Beckert.

He predicts that slower growth will hurt carriers and lead to consolidation. Does this mean prices will rise? Not with players like Skype around.

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Reader Comments

George

December 10, 2007 11:35 AM

Skype is fantastic. I use it for quite a few international calls and frequently the connection is clearer than if I use a traditional phone line.

Mark Dee

December 11, 2007 09:10 AM

As with the 10 million others using Skype every time I do, we enthusiastically respond to the "low cost-high quality" service.

Living in Barbados, where international calls are expensive, and quality "variable" Skype allows us to keep in touch with family and friends, as well as conduct business ["800" type
calls are free].

Many "offshore businesses" also use Skype/VOIP telephony to operate more efficiently.

mohammed aboueldahab

December 11, 2007 11:31 AM

i think that the internet connection now is more sheap and more easy , and may be in next few year the international calls will slow down by 20%
so the communication companies must be decrease its cost for international and long distance calls , and 001 communication company already began to decrease its rate from 6 mounth
please varify my comment and comment on

best regards;

eng.mohammed abou-eldahab
marketing manager

Nanton

December 11, 2007 11:56 AM

I'm guessing that you transposed the number of minutes for the years mentioned: 18 BILLION minutes for 2006 instead of 300 MILLION. Just wanted you to know that you might want to double-check your info.

Tony Lew

December 11, 2007 12:07 PM

Skype service is a low-cost alternative to traditional phone service for international calls. It's not perfect though. Calls get dropped fairly often, and the voice is not always clear. It is not as reliable as traditional phone systems for sure. But it works for the most part, and it is cheaper, although when you add up all the little extra services, it can get up there.

Beeser

December 11, 2007 09:37 PM

Skype worked well until eBay broke it.
Now it is next to useless....

johncutts

July 25, 2008 06:31 AM

Yeah , skype is good. I am using it for making long distance international calls and it is clear.

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In Blogspotting Senior Writer Stephen Baker and Associate Editor Heather Green take a look at how cutting-edge technologies are changing business and society. Whether its blogs or wikis, data crunching or data targeting, technology’s advances are reshaping the world that we live in.

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