Skype has become one of the premier platforms used by individuals for VOIP calls.  And why not?  It is easy to use, has several features aside from VOIP calls, and can be cheap – even free.  With all these things going for Skype, you would think that they are raking in money from their activities, wouldn’t you?

Well, according to analysts, that is not exactly the case.  Skype’s latest move, which is to introduce its newest line of products (packages with flat rates for unlimited calls), is a sign that they are not really making money off their VOIP sales.  PCWorld’s Business Center’s report on the matter states:

Skype has announced a flat rate for international calls, further showing how difficult it is to make money from telephony, according to analysts.  Skype has announced a number of different packages for unlimited fixed international calls — which if you read the fine print means 10,000 minutes per month — at a flat monthly fee. In the U.S. users will, for example, pay $9.95 (€6.95) for calls to 34 countries.

“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?,” asks Blood.  The $2.6 billion is a reference to eBay’s acquisition of Skype in 2005, putting more pressure on Skype to make money. 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.

Flat monthly fees for international calls are nothing new. Other Internet providers, especially in Europe, have been offering this for some time. “Skype was having difficulty competing in France, where the market really is at rock-bottom prices. Nine dollars and ninety-five cents is good for the U.S. market, though,” Blood said.

This is good news for VOIP users, though.  Skype’s packages are quite easy on the pocket.  Of course, as the excerpt mentioned above, the unlimited calls are only unlimited in theory.  The fine print will indicate 10,000 minutes a month.  If you do a little calculation, that would translate to about 5.56 hours a day.  If you are not going to use Skype for business, that is virtually unlimited calling!

For more detailed information, visit Skype’s page on the new packages.

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