SBC sees little threat from Skype, Net calling

Iria · Oct 22, 2005, 06:36 AM

WASHINGTON (Reuters) - SBC Communications Inc. sees little challenge to its traditional telephone business from services such as Skype that offer free phone calls over the Internet, SBC's chief financial officer said on Thursday.

"I don't see it as a significant threat," SBC CFO Rick Lindner said in an interview with Reuters. "The fears of what may happen there are overblown."

In recent weeks several tech giants, notably Google Inc. and Yahoo! Inc., have either launched or bolstered services offering free voice calls between computers.

Skype, which also allows users to place relatively cheap calls to regular telephone numbers worldwide, agreed last month to be bought by Internet auction site eBay Inc. for up to $4.1 billion.

That deal raised the specter of a well-funded Internet calling service taking on the U.S. "Baby Bells," such as SBC and Verizon Communications Inc.. Several analysts have contended that while eBay bought Skype to increase Web-based commerce, it would eventually look to expand Skype further into telecommunications.
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Read More/ Source: Reuters

Oct 22, 2005, 06:36 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	SBC sees little threat from Skype, Net calling WASHINGTON (Reuters) - SBC Communications Inc. sees little challenge to its traditional telephone business from services such as Skype that offer free phone calls over the Internet, SBC's chief financial officer said on Thursday. "I don't see it as a significant threat," SBC CFO Rick Lindner said in an interview with Reuters. "The fears of what may happen there are overblown." In recent weeks several tech giants, notably Google Inc. and Yahoo! Inc., have either launched or bolstered services offering free voice calls between computers. Skype, which also allows users to place relatively cheap calls to regular telephone numbers worldwide, agreed last month to be bought by Internet auction site eBay Inc. for up to $4.1 billion. That deal raised the specter of a well-funded Internet calling service taking on the U.S. "Baby Bells," such as SBC and Verizon Communications Inc.. Several analysts have contended that while eBay bought Skype to increase Web-based commerce, it would eventually look to expand Skype further into telecommunications. ___________ Read More/ Source: Reuters