Skype’s Bubble Set to Burst

The Skype bubble appears to be bursting following news that VoIP services provided by ISPs have recently taken the lead in Europe’s internet telephony industry, with a 51.2% market share.

Skype, which previously held the top position, has lost ground to these services, with a share of 45% of total minutes used. Vonage, meanwhile holds less than 1% of the market, while all other VoIP providers have 3.5%, combined.

A similar situation is taking shape in North America, with cable and ISP companies now occupying 53% of all VoIP minutes. Vonage is a clear but distant second with a 21.7% share, while Skype trails with 14.4%, and all others account for 10.9% of usage.

The increasing trend toward ISP is likely due to the benefits of bundling with other services like internet access and cable TV. Customers are much more likely to try a service if it’s provided by a company that they already deal with and trust.