Now that Skype is part of a the Ebay auction powerhouse, there is no more "rooting for the underdog". So I will watch in amusement how the former startup will respond to the latest challenge from the incumbents:
British Telecom and Yahoo! are planning to undercut Skype's calling rates by as much as 50 per cent, taking away the firm's main competitive advantage.
It will be interesting to see how Ebay responds to this challenge - if it will respond at all or if the auction powerhouse will repeat the mistakes it made with Paypal. In that case it turned the service into a promising Ebay service, but fail to extend it's reach much beyond the auction website (today about 75 per cent of all transactions on Paypal are meant to pay for auction items).
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