BT undercuts Skype
At the moment, BT users can use BT Communicator to place VoIP calls. However, BT plans to halve the cost of its Voice over IP service from October 4, as it looks to counter the increased popularity of rival offerings from VoIP pioneer Skype Technologies SA, which was recently acquired by the online auctioneer eBay Inc for $2.6bn. Other players such as Vonage Holdings Corp, and the recently launched VoIP product Freetalk from UK electronics retailer Dixons, are also starting to make their presence known, as are the countless other VoIP offerings from the likes of Google, AOL, Microsoft, and Yahoo.
The cost of BT’s VoIP calls to 30 countries such as the US, Australia, Spain, and France will cost just 5 pence (8 cents) a minute. For example, a 60-minute call to a US landline, which would cost 72p ($1.27) with Skype, would cost 30p ($0.53) with BT, said the telco in a statement. However, it should be remembered that Skype calls to other Skype users are free of charge, regardless of location. BT is comparing the price of a Skype call to a foreign landline.
BT’s offer only runs until December 31 and it is not clear whether BT will extend the deal after that date. Currently, the carrier offers calls to Australia with no call charges for up to one hour with BT Communicator with Yahoo! Messenger.
Another advantage of the BT offering is that with BT Communicator, the cost is charged to a customer’s usual BT phone bill, whereas with Skype, customers have to buy pre-paid credit.
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