RadioShack to Carry Skype Hardware, Service

In an aggressive move into the U.S. marketplace, Internet phone (VoIP) leader Skype announced today that it is partnering with retailer RadioShack to bring Skype service and Skype-capable hardware to U.S. consumers. RadioShack will offer Skype Starter Packs for $4.99 though December 24, 2005, including Skype software, a Skype-enabled headset, and 30 minutes of SkypeOut service to any phone number in the world. RadioShack will also carry the VoIP Voice Cyberphone K USB Internet phone for $40, the Logitech Premium USB Headset 250 for $40, the Linksys CIT200 Skype-enabled Cordless Internet Telephony Kit at $130 (with $15 mail-in rebate), and (exclusively) the new Motorola H500 Bluetooth Headset with PC850 USB Adapter for $100.

The deal makes RadioShack the first U.S. retailer to feature Skype service, although RadioShack currently offers VoIP services from Vonage to U.S. customers.

Recently acquired by eBay, Skype is by far the world’s largest VOIP provider, with more than 60 million users worldwide. However, a scant 2 million of those users subscribe to the SkypeOut service, which enables Skype users to call “out” of the Skype network to traditional phone numbers. Instead, most Skype users use the service’s free computer-to-computer chatting capability; additionally, most Skype users are located in Europe and Asia, where broadband Internet service has often quickly penetrated the market and per-minute long distance charges dominate, making Skype’s free computer-to-computer calling both practical and very appealing. Conversely, broadband rollout in the United States has been slower than many other developed nations, and flat-rate long distance pricing are more common. However, Skype’s 2 million SkypeOut users is still double the number of paid subscribers boasted by Vonage.

As U.S. broadband availability increases, the primary obstacle to using Internet-based telephony is that many computers make crappy phones: many models lack built-in speakers or microphones, and many which offer those capabilities are impractical to use as phones. By making Skype-compatible headsets, handsets, and other hardware available through roughly 3,500 RadioShack stores across the U.S., Skype makes it significantly easier for users to get up and running with Skype Internet phone service. Skype also benefits from RadioShack’s sales staff explaining and promoting the service. Skype software runs on Windows, Mac OS X, Linux, and Pocket PC, and can cost as little as two cents a minute to call traditional phones.

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