3. In your opinion, what were the advantages of Skype’s early entry into the VoIP market? The telecommunications industry has undergone tremendous changes in the last two decades, through the explosive growth of the Internet. VoIP (Voice over Internet Protocol) was the name for the new technologies that allowed the delivery of voice communications over an Internet network. Enabling functionalities, such as voice calling, video calling, and instant messaging, VoIP has rapidly replaced expensive traditional phone services, because of its reduced costs, eliminating investment in telecom hardware equipment.

The VoIP market is estimated to grow from US $ 20 billion in 2018 to around US $ 55 billion by 2025. This growth can be mainly attributed to the increasing demand for cost-effective communication solutions for both organisations and individuals, and worldwide government initiatives for the development of wireless telecommunications infrastructure, such as 4G/5G networks.

However, when Skype was launched in 2003, the notion that people could use voice calls for free was something new. Skype Technologies was the manufacturer and developer of Skype, a high quality and easy-to-use software-based communications platform for both consumers and businesses. Today Skype can be used for both one-on-one and group conversations on phone, computer, TV and voice assistant devices, such as Alexa, to communicate, collaborate and share experiences globally through voice, video and text. The software also allows users to make low-cost calls to landlines and mobile telephone lines.