Skype, the world's leading provider of Internet telephony owned by Ebay, has just fired the opening salvo in what looks like being an aggressive price war by leading VOIP providers in the US. For Skype users in the US can now make calls to land lines and mobile phones for free.
US and Canadian-based Skype customers can make free calls to traditional phone numbers within their borders using its SkypeOut service, until the end of this year.
Skype has over 100M users, but less than 15% of them are in the US. And now is the time to grab market share, for the competition is heating up. Yahoo, MSN and AOL are or have all just launched similar services and Vonage, the US leader, is soon to go public.
I would expect Skype's competitors to repsond in kind, for the war for Internet telephony users has only just begun and it could get even hotter than the war for free email users!