W2-How the internet killed the phone industry?

A bunch of business entities related to telephone or internet business are waiting for the new communication model that SKYPE provided. What kind of know-how do the bidders want to learn or to own?
According to this article “How the internet killed the phone business” retrieved from The Economist, VOIP will take over the place of traditional telephony in the future. This inference is highly possible, even so it still takes a long time. From my point of view, there are some reasons as followed.
Firstly, I think the needs of consumers are included the idea “go mobile.” So the challenge they will face is the equipment. If VOIP becomes a common service to everyone, it means the infrastructure of internet can be connected everywhere as stable as possible. Then the consumers can call and communicate with their friends without difficulties. Moreover, we have to assume there is no digital divide among cities and countries.
Secondly, in terms of VOIP business, the leading company SKYPE has an objective to offer the internet phone for free and keeps working on the value-added services which part is the large margin for SKYPE. Therefore, it is a brand-new model for communicating to both service provider and consumers. Are people willing to adopt it quickly and without entry barriers to the older generation.? Even though the target market of SKYPE is the youth or people who need to make phone calls quite often, the total scale of market should be achieved to certain amount. That this new service “VOIP” is capable of working effectively among networks.
The last part I want to mention is you still have to pay the internet fee for the cable company. In other words, this service is not for free. But the more services offer via internet, the easier internet oriented businesses start. That is why I am pretty optimistic for VOIP service.