Voice over internet protocol(VoIP) and Skype
In October 2005 eBay purchased Skype, the internet telephone service, for $2.6 billion, which was by any measure a risky venture. Skype is an internet voice company offering voice over internet protocol (VOIP).
This enables users to talk for free over the internet .Skype produced $50 million of revenues in the third quarter of 2006 (Nuttall, 2006). eBay wanted to move its core e-commerce business, potentially putting it on a collision course with Google and Yahoo. This would provide eBay with the opportunity to add a voice calling feature to its existing online network and would allow it to charge fees to merchants for generating sales leads with merchants paying every time a potential customer clicks on a link in an online listing to initiate a voice call.
There is little doubt that eBay has at least 500,000 sellers, many of whom are entrepreneurial, quick to copy best practices, and used to working with new forms of software. Indeed, they are motivated by money. The acquisition of Skype and the use of VOlP should enable eBay to offer its call transfer functionality. which can bypass traditional private branch exchange networks, thereby enabling small companies to acquire enterprise-style communications systems for a meagre amount. Further opportunities should exist, for example sellers could direct details and similarly automate information content, such as allowing potential buyers to watch a video of the product free of charge via skype. Similarly, calls coming into an auction will have caller ID of potential buyers, feedback of buyers,and could concurrently provide additional information back, such as details of other auctions.
This isn't even a full list of benefits of the link-up between eBay and Skype. There is also the potential to link Skype and eBay user profiles to databases on other services and create new communities and communication tools. Initially, however, Skype enables a much broader platform. Furthermore, the link up of develops a platforming strategy conversational markets. Thus, connected to different application platform interfaces developers might design their own 'softphones', enterprise solutions, or even"pay to call you' channels a Skype equivalent premium telephone services(see Figure 14.8)