Skype is one of the products that has contributed in its field and become an integral part of the industry. It is a global telecom operator in essence with most of its followers claiming to have become global players.

The application is used by over 400 million registered users. The most recent update (Version 4) has made some interesting makeover apparently projecting video calling. Although, there are no authentic figures about how many of these do actually use paid services of Skype, but it is evident that a nominal percentage actually pays for any of Skype’s services.

Not sure, how long the company will sustain this model and if it makes all the services paid; will that be acceptable as there are many other clients offering free PC to PC service. To boost up the revenues, Skype must try out with the ad based model. Skype has two potential streams for revenue through advertisements. One could be the banner and display advertisements that could be used in the windows of the client. Another slot that Skype could try with advertisements is the time from initiating a call till the connection is established (the ringing period). I have observed it takes a minimum of 30 seconds to establish a call and this time can be used for voice ads by Skype. Though the advertising must be for free services only i.e. PC to PC calling.

With the speculations going around that Skype founders are repurchasing it, hope they boost the revenues with the introduction of advertising. Till then enjoy free Skyping.

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