Did the internet kill the phone business?
A few weeks ago, ebay bought skype (I blogged about that) and in the September issue of “The economist” was an article, how the internet is killing the telephone business while you read.
Well, I can agree, that a growing group of my friends and colleagues are using IP telephony via Google Talk or Skype. Most of them are still doubtful if that can replace the traditional phoneline. Right is: the original business of selling phone minutes is going down, BUT I also think that the companies which conducted in that business are still on top of their revenue. They just earn their dollars with internet connections. If you look at the balance sheet of the Deutsche Telekom, I think you can spare your compassion for that “dying” business - they are growing!
Smaller telcos, maybe the more fragmented market in the states, will suffer - but did not the same happen to the steam machine vendors early last century?
