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> its just VOIP

Strength in brand. Most common-folk users have no idea what voip is. You can't compete with Skype by just doing a voip client - if that were true then you would see Google Talk, Facetime etc. eating into Skype market share, and not Skype growing 30% per quarter.

For many people, Skype is online communication and messaging. It has become a verb and one of the most recognizable online brands alongside Google, Facebook etc.



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