EBay bought Skype for $4.1 billion. And this could be a major threat to Vonage. But before getting muddy lets discuss few things first.



Vonage was a pioneer in Internet Telephony. With millions of subscribers and billions of calls per month, Vonage seems to do all fine. No doubt Vonage is very affordable with its $24.00 per month unlimited plan and reasonably good 500 minutes a month $14.99 plan. You just need a phone adapter and a broadband connection to get connected throughout in US and Canada.



Now let’s examine the Skype fever. The easy, workable and free software that costs you nothing, all you need is good computer with broadband access. Just download it, install it across all major platforms including Windows, Linux or Mac and start rocking. Skype too has other options like Voicemail for $19 a year, get an incoming phone number for $39 a year, plus other add-ons and plugins to enjoy.



Till now both Skype and Vonage were not much of a threat on one another both were playing in different playfields, Skype frenzy was more in Europe while Vonage enjoying loyalty of its North American users,



But Ebay buying Skype could be a major deciding factor in the ongoing battle. Why?



1.It will increase Skype’s awareness in Vonage’s home ground.

2.Skype recent deal with with RadioShack - to distribute phones and headsets that work with Skype’s Voice over IP (define) service is enough to ring bells in the ears of Vonage. This might be the first deal between Skype and U.S. consumer electronics chain, but soon other such announcements will be heard.

3. What could have been the better time for Skype to announce its video calling with its version 2.0?

4. The easy to use Skype software, with more plugins adding on a regular basis, gives all the more reason to Skype to spread like fire among new users.



I am not saying that Vonage will disappear but it seems at this point of time, that its going to be a bit more difficult for it to remain profitable. One way or other overall consumers will love the new emerging more cheap, more efficient, more feature rich Internet telephony in coming days