Skype crosses the Atlantic with RadioShack

Skype crosses the Atlantic with RadioShack

Skype, the VoIP internet call company recently bought by eBay, is all set to make inroads into the American market via RadioShack outlets. RadioShack will provide the handsets and headsets that will be required to take advantage of the free internet telephone service.

Skype, a major service provider of free and low-cost internet telephony (a few cents per minute for long distance and international phone calls) across Europe and Asia will distribute its phone kits through the 3,500 RadioShack Corp. stores.

“Customers should love how they can cut their phone bill without cutting their phone line, making unlimited free calls to other Skype users around the world,” said Jim Hamilton, RadioShack's senior vice president and chief merchandising officer, praising the service.

The entry into retail will prove to be very fruitful in the long run as it will enhance the company's reputation with the American broadband consumer who has started moving away from traditional telephony.

Both Skype and RadioShack are happy about the alliance “Skype is looking at innovative retail channels for distribution, and with 94 percent of the U.S. population living or working within five minutes of a RadioShack, we see them as an ideal partner through which to offer consumers access to Skype accessories,” said Saul Klein, Skype's vice president of marketing. “RadioShack is known for helping make the market for new technologies, and by all indicators Skype is poised to resonate with U.S. customers after experiencing huge success overseas,” said Jim Hamilton.

Skype Technologies boasts of a 66 million strong user base, 20-30 times more than any other Web based Phone Company. Skype was taken over by eBay Inc. for $4.1 billion. Skype offers user-friendly software that can be used to connect to other phones or computers.

It is a step ahead of other service providers like Vonage as is does not require changes to the central phone network. RadioShack will display Skype products on a special kiosk and Skype product promotion will also take place in mailing lists and Radioshack catalogs, which will be sent out over Thanksgiving and Christmas.