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Skype under Cisco

Journal blog suggests service may be fee-based if service quality improves

By Jim Duffy on Mon, 08/30/10 - 5:11pm.

What would Cisco do with Skype? The Wall Street Journal offers some thoughts on this in the wake of speculation that Cisco might acquire the Internet voice and video calling company before it goes public.

Reports surfaced over the weekend that Cisco has already made an offer for Skype. Blog TechCrunch posts that Cisco may have to offer a price comparable to Skype's target of raising $5 billion in its initial offering.  And purchasing Skype would seem to fit with Cisco's emphasis on unified communication and collaboration, with a heavy dose of video.

Noting Skype's unprofitability, the Journal proffers that Cisco may end up charging subscribers for what is now a free or very low cost video and voice calling service if it can improve service quality. Low to no cost is why it has 560 million registered users - but improved service quality may make them stick around if Cisco decides to charge for Skyping.

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