Deal done. Retail VOIP in the offing? Views later.

eBay has agreed to acquire Luxembourg-based Skype Technologies SA, the global Internet communications company, for approximately $2.6 billion in up-front cash and eBay stock, plus potential performance-based consideration.

Skype generated approximately $7 million in revenues in 2004, and the company anticipates that it will generate an estimated $60 million in revenues in 2005 and more than $200 million in 2006. For Q4-05, eBay expects the acquisition to be dilutive to pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006. On a long-term basis, eBay expects Skype operating margins could be in the range of 20% to 25%.

The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2005.

Full text of news release...

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I've been taking turns manning the virtual call centre we have set up using Skype linked to KatrinaHelp, to help cover 24 hours of the day. I am beginning to understand what it feels like to be a call-centre operator :).

What amazes me though, is that I can volunteer my time, sitting in my living room at home in Mumbai India, and be of use to help those seeking information about their loved ones who are missing on that other side of the world. This morning, I was on a shift for a couple of hours, and I received about 8 calls on our Skypein number, and made a few on SkypeOut. It was really rewarding to be able to point the callers to resources and hook them up with those offering help. And they were so grateful someone was listening to them, and that they did not have to figure out how to navigate pages on websites and wikis.

Imagine how it would be to have a virtual Skype phone bank. One that is not just virtual, but ad hoc. Just-in-time emergent support. Always on when we have a bank of volunteers from all over the world, and at all hours. Our way of reaching out and helping those in distress.

The recently launched DNA, a national English-language newspaper, has bagged the first interview with Niklas Zennstrom in Indian media. No surprises really, as he talks about how Skype has taken off, the thinking behind creating Skype and the way forward for Skype. Partnerships with handset manufacturers, and wifi enabled devices, neww payment options, and additional premium offerings such as video-conferencing and workgroups focussed offerings.

A non-committal 'perhaps' to the question of whether India could aid in product development going forward, and the statement that India ranks 36 in Skype's top ranking countries of use, with more than 279,000 users. Ending the interview with this thought :

"As one of the world's emerging leaders in IT and associated services, India certainly has a major part to play in the future development of Skype."

279,000 is a small number really, I think there is tremendous potential to expand the base in India. Perhaps a starting point would be to scope the opportunity with different segments of potential Skypers in India - the Indian with family abroad, the villager with low communication access otherwise, the internet kiosk user, the small and medium businessman.

Then there is the business model ... free vs paid services – should Skype look at 100mn subscribers to free service or 10mn who pay? What are the critical success factors, brand strategy, media streams etc both short term and longer term ?

And to scope different areas of operation and affiliates - appropriate partners, hotspots, cybercafes where often there is a lot of VOIP usage, social networking sites (dating and match-making sites for instance are huge in India – not sure they currently use VOIP or presence), the whole BPO industry, portals and programmers who tend to use more of these technologies (and are a huge number).

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As I write this my Skype buddy Gaurav Prasad is just waking in India. As he opens the chat message I sent him he will think he is still dreaming.

Gaurav is a Linux freak. He is a major contributor to the Learning Skype’s plug-in Architecture guidebook

I sent him this link. Business Week's coverage of the new Nokia hand-held “Linux-based Internet Tablet”.

How long will it take Gaurav to get Skype up on this platform? How long before he will have the Skype API enabled on it?

Nokia have made a bold strategic move. See it here. How long before we read about Nokia on the Skype Partner’s Page?

One thing is very clear in this report in eWeek. Nokia chose open source because they understand the value a strong developer ecosystem brings to their business.