Skype may disrupt SME telco market with new VoIP product

Skype’s new business product could disrupt the market and hurt some larger providers of telephone services, including large telcos like Optus and Telstra, one expert predicts.

The warning comes as the Indian government has now set its sights on the VoIP provider, along with Google’s new Gmail Voice product, saying it will be focussing on any telecommunications provider that doesn’t provide easy access to its data.

The scuffle comes just as the Indian Government has backed down on its Research In Motion ban, announcing a 60-day review period.

Telsyte research director Foad Fadaghi says the new Skype Connect program for businesses will hurt providers of traditional telephone systems.

“What Skype is essentially providing is a way for your PBX system to be connected to Skype, rather than a traditional telephone service. So rather the real threat is for the larger telcos, like Optus, Telstra and so on, instead of the installers of infrastructure.”

While the product was previously available in a beta format, the new product will allow businesses to connect a Skype service to their already-installed PBX or UC telephone systems.

The product comes as Skype prepares for an IPO, with documents already filed with the American Securities and Exchange Commission. As part of that filing, it said it would pursue new business products in order to stay profitable.

Fadaghi says the product will be attractive for businesses looking to cut down on their phone bills, and says it is all part of a bigger plan for Skype to be one of the main providers of VoIP services to both individuals and corporates.

“You will expect some businesses to look at this product seriously. Within business, Skype coverage is quite high, particularly for those companies with branches overseas. This represents a good chance for Skype to grab more of the market.”

Fadaghi points to rumours swirling around the tech industry suggesting Cisco will snap up Skype before its IPO is finished, with a valuation of $US5 billion. He says this is a clear indication that “Skype is becoming a serious contender in this business market”.

“You can also look at some players like Google which are attempting to enter the voice market. I think a lot of companies are going to attack this space as an opportunity to provide businesses with more services.”

Skype Connect, which charges uses a $7.78 monthly fee per line, offers outbound calls from desktop phones to landlines and mobiles, billed at Skype’s normal rates, as well as the facilities to receive inbound calls through a “click and call” button on a business website.

The feature incorporates all of the existing features within the PBX system including call routing, automatic call distribution, conferencing, auto-attendant, voicemail, call recording and logging.

Fadaghi says the business won’t hurt installers of telephone and PBX services. Instead, it may hurt those telcos servicing the SME sector.

“This market is significant, and quite large. However, I’m not sure how many would be hurt because if Skype was to dent that market, there is still plenty of room for other players because it all comes down to pricing.”

Meanwhile, the Indian Government is targetting Skype and Google’s new feature to allow users to make calls through the Gmail inbox.

AFP reports the Government is taking issue with any telecommunications provider that doesn’t allow easy access to its data. As a result, notices have been sent to companies warning them to comply with strict data regulations.

“If a company is providing telecom services in Indian, then all communications must be available to Indian security services,” an official told AFP. “If Google or Skype have a component that is not accessible, that will not be possible.”