[quote=Red Herring]Unlike many of its counterparts around the globe, BT Group, the United Kingdom’s largest telecommunications carrier, has embarked on a plan to use its ownership of the country’s largest broadband network to challenge VoIP service providers such as eBay’s Skype division.
“Whether Skype’s business model is sustainable or not is yet to be determined,” said Gavin Patterson, BT’s managing director of consumer and ventures. “But this is our wakeup call. Rather than let VoIP be done to us, it is our single-minded intent that we transform our own business behind it and use it as a way of increasing our customer base on other people’s networks too.”
In a meeting in London recently, the carrier detailed a long-range plan whereby BT would embrace the changes taking place in the voice world even if it means transitioning a significant portion of its more profitable, traditional voice subscribers to cheaper services such as VoIP (see BT Begins Skype Backlash).
“The key to this is getting the cost base right on the new services and aggressively going after market share so that your core business is not eroded,” said Mr. Patterson. “We are actively migrating price-sensitive customers over to VoIP.
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BT believes there is life in the voice market beyond VoIP, and long term, the real losers would be VoIP service providers such as Skype.
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BT embarked on its Skype-beating strategy less than two weeks ago when it announced it was slashing its prices for voice services in half and offering free calls to 30 different countries during the holiday season.
The company already prices its international calls made from PCs to regular telephones via its BT Communicator service cheaper than Skype does with its SkypeOut service. BT also plans to introduce an enhanced VoIP service in the spring that would significantly improve sound quality. - Source[/quote]
The race to the bottom is in full swing. Skype better acquire a leadership position, and soon.