Skype Doubles Connection Fees For Some International Calls

The recession might be global, but Skype — the world’s largest international phone company — wants more pennies from the pockets of its customers who place overseas calls to landlines and mobile phones. Starting on September 6, Skype is doubling its connection fee for calls to most countries from 3.9 cents to 7.9 cents. The […]

skype_sleepingThe recession might be global, but Skype — the world's largest international phone company — wants more pennies from the pockets of its customers who place overseas calls to landlines and mobile phones.

Starting on September 6, Skype is doubling its connection fee for calls to most countries from 3.9 cents to 7.9 cents. The connection fee remains 3.9 cents for calls to so-called Global Rate Countries, a selection of countries that includes Germany, the U.K. and the United States. Calls to those countries cost 2.1 cents per minute after the first minute, which will cost 6 cents in total.

Skype is doubling the rates as part of a normal process of looking at prices and making any necessary adjustments, according to a Skype spokesman, who points out that Skype subscribers won't see a price increase, and Skype-to-Skype calls remain free. The rate change was quietly announced on a hard-to-find page on Skype's site.

It's a surprising change for Skype given that it is already facing a number of competitors who beat Skype on price — including companies such as Rebtel and Gizmo Project. Wholesale data connectivity prices also continue to fall worldwide.

"It's not just about price, it's about value," a Skype spokesman told Wired.com, citing Skype's free audio and video calls and its new "ultra-wideband" audio codec -- which delivers high-quality sound using less bandwidth.

While the change is just pennies per call, it could add up to a big change in Skype's bottom line. The company, which eBay bought in 2006 for $2.6 billion, has never brought in much revenue, as its core product is free computer-to-computer calling. In 2008, Skype contributed $550 million to eBay's revenues — not much given Skype handles more international calls than any other telephone company.

Ebay announced in April that it would spin Skype off into its own company via an IPO in early 2010, but Skype could not comment on whether the price change is meant to increase the value of the company since it is in a SEC-mandated quiet period.

Photo: A friend falls asleep in midst of a Skype call. Ollie Crafoord

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