By Sharla Sikes

In the increasingly competitive world of IP communications, Skype is determined to keep its name at the top of the list.

One of the first to offer internet calling, Skype introduced a new package featuring unlimited international calling for a flat rate of $9.95 per month.

The plan encompasses calls to land lines in 34 countries, including most of Europe, plus Canada, Australia, New Zealand, Chile, China, Singapore, Taiwan, Japan, Korea and Malaysia. Calls to cell phones in the United States, Canada, China, Hong Kong and Singapore are also included.

Skype currently offers unlimited calling in the United States and Canada for $3 per month, with another new plan for $5.95 that will also include Mexico City, Guadalajara and Monterrey, and a discount on calls to other places in Mexico.

Skype’s new plan indicates that VoIP may be becoming a commodity.  It is becoming harder for independent VoIP providers to show profit when they are up against larger telecommunications companies with many times the marketing budget and branding.

“It goes to show that there’s not really a market here,” said Gartner analyst Steve Blood. “Every few months they have to continue to reduce prices to compete—where’s the revenue to pay back the $2.6 billion?”

eBay paid $2.6 billion to aquire Skype in 2005.

“Skype is using the spray gun approach, offering different consumer and enterprise packages to see what works,” said Bernt Ostergaard, research director at Current Analysis.

Blood recommends that Skype “adapt and open up” in order to stay viable in the VoIP marketplace.

“Accept you won’t make any money from telephony, open up the environment and create a value proposition that your subscribers can connect to anyone through instant messaging, voice, video, e-mail across wired and wireless networks,” Blood said.

Skype, however, is “upbeat” about its future, with the last five quarters showing profit according to Wilhelm Lundborg, product manager, Skype for Business.

“This announcement is a natural progression for us, and flat rate is where it’s at today. It’s something our customers have been asking for,” Lundborg said.

Skype users typically connect via a software application on a computer with microphone and speakers or a headset, but with the option to call a local number and be connected to the international numbers included in the plan.

Vonage www.vonage.com and cable service providers also offer unlimited calling plans, but at higher prices.

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