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April 21, 2005
Mark Evans on Skype
Mark Evans - National Post: Internet telephony has its 'ipod'
"...Mr. Zennstrom, who gave a keynote speech yesterday in Toronto at the VON Canada conference, said Skype has been a business from day one, but many people have had a difficult time understanding its business model because traditional metrics do not apply.
"A lot of people in the telecom industry said there was no business model," he said during an interview. "When you are a 120-person company providing worldwide service with 34 million users and your marginal costs are zero, numbers like average revenue per user is irrelevant. ARPU is irrelevant because our cost base is not in users, but employees..."
Posted by jeff on April 21, 2005 07:37 AM | Permalink
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