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eBay Chief Foresees Free, Ad-based Phone Service

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Seeking to justify eBay's $4 billion purchase of web-based communications phenomenon Skype Technologies, Meg Whitman, eBay's chief executive, said consumers can expect in a few short years to make telephone calls for free, with no per-minute charges, as part of a package of services through which carriers make money on advertising or transaction fees, reports Reuters (via MediaBuyerPlanner).

Skype, which allows free web-based calls between members, ended September with more than 57 million registered users. eBay said it expects Skype to produce estimated revenues of $60 million in 2005, and more than $200 million in 2006.

Whitman said Skype's explosive success, would - over the next several years - drive the cost of phone calls down to nothing.

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