The Microsoft-owned Skype platform has banned recharges and the purchase of phone numbers for calls from Skype to regular phones. Instead, Skype is moving to a SaaS (Software as a Service) model: customers will have to sign up for monthly subscriptions to regional and global Skype-to-phone plans for a flat fee, which will affect millions of people. According to Microsoft, 36 million people used Skype daily in 2023.
Image source: Microsoft
A Microsoft spokesperson confirmed Skype’s policy change, adding that the company “continuously evaluates product strategy based on customer usage and needs.” Existing Skype phone numbers will continue to work, and funds already deposited into your account will be available until they are completely used up, subject to at least one call every 180 days.
In 2003, Skype VoIP service became a pioneer in the field of Internet calling and messaging. The service allowed users to make free voice calls over the Internet, bypassing traditional telephone lines. Later, the app added support for instant messaging, video, and file sharing—services that changed the rules of the game and became the benchmark for all such apps.
The company has come a long way in business. In 2005, it was acquired by eBay for $4.1 billion, and four years later sold to a private consortium for $2.75 billion. In 2010, Skype filed for an IPO. At the time, the company had 560 million registered users and 124 million monthly active users, but only 6% paid for premium services. In 2011, Microsoft acquired Skype for $8.5 billion.
The service has always been completely free for Skype-Skype communication; only calls to mobile or landline phone numbers were paid. The client could purchase a local phone number linked to Skype for calls within their country. Skype also offered a commercial product for enterprise users.
Gradually, Skype’s popularity began to decline as a result of the emergence of competing applications such as WhatsApp and Zoom. Microsoft itself hastened Skype’s demise by launching Teams in 2016, which eventually absorbed Skype for Business. Today, Skype is in relative decline, remaining a peripheral product to Microsoft’s larger ambitions as a cloud infrastructure giant.
While Skype still offers top-up and phone numbers on its online resources, the transaction cannot be completed. “Sales of new Skype numbers and Skype Credit have been permanently stopped,” a company spokesperson said. – For some customers, the interface to purchase new Skype credit may still appear at certain entry points, but payment attempts will fail. We are aware of this issue and are working to make the necessary updates.”
It’s likely that Skype’s policy changes will impact tens of millions of people who used Skype specifically for its phone functionality that other similar apps lack. The need for a monthly fixed fee may force customers to stop using Skype. This may lead to the end of the application’s lifecycle.