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Monday, May 21, 2007

Wal-Mart selling pre-paid Skype calling cards

Network World

Convergence & VoIP




Network World's Convergence & VoIP Newsletter, 05/21/07

Wal-Mart selling pre-paid Skype calling cards

By Steve Taylor and Larry Hettick

Skype last week announced that customers will be able to buy Skype-certified headsets, Webcams, and handsets, plus pre-paid Skype calling cards at 1,800 Wal-Mart stores across the United States.

The partnership makes Wal-Mart the first and currently only retailer in the country to offer Skype’s pre-paid cards, according to Don Albert, vice president and general manager of Skype North America. Wal-Mart will set up branded Skype Internet Communications sections inside each store’s electronics department selling up to nine different Skype-certified products.

In a prepared statement, Kevin O’Connor, vice president and general merchandise manager for Wal-Mart Electronics said: “We have taken a sharp focus to launch the products and brands that consumers are moving toward at the most affordable prices. The Skype hardware and pre-paid cards are a great fit with Wal-Mart because they offer long-term money-saving solutions at the right time for many customers — parents, grandparents, college students and military families.”

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Skype also offers more than 50 certified products from more than 15 differed suppliers through the company’s online store, but this announcement marks the first time Skype has offered a pre-paid channel where users can buy Skype calling services at a retailer for cash.

For customers who want to make international outbound calls using Skype they can buy a $20 pre-paid card and make international calls for rates as low as 2.1 cents per minute. A second pre-paid card option offers three months of unlimited outbound calling within the United States and Canada for $8.85.

Handsets, which users can plug into their Internet-connected PC to make VoIP calls start at under $15; cordless phone systems that plug into an Ethernet connection (and don’t need to use a PC to make the VoIP call) are priced at about $150, and webcams begin at $25.

When compared to other VoIP-based unlimited domestic calling plans that are typically priced at about $25 a month, the Skype alternative using a certified headset set pays for itself in less than a month, although users won’t be able to receive incoming calls without buying inbound calling from Skype or other service providers.

Our analysis: Is VoIP becoming mainstream? You can’t get much more mainstream that Wal-Mart!


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Contact the author:

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. For more detailed information on most of the topics discussed in this newsletter, connect to Webtorials, the premier site for Web-based educational presentations, white papers, and market research. Taylor can be reached at taylor@webtorials.com

Larry Hettick is an industry veteran with more than 20 years of experience in voice and data. He is Vice President for Telecom Services and Infrastructure at Current Analysis, the leading competitive response solutions company. He can be reached at lhettick@currentanalysis.com



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