Skype and the New Regulatory Framework

Skype, an increasingly popular VoIP (Voice over IP) provider, has been
heralded by many as a revolution for voice telephony. The underlying technology it uses
(P2P or Peer-to-Peer) and the quality of its voice calls have been the two main factors
behind such bold statements. This paper looks in more detail at Skype, the services it
provides and the types of internet access that enable its use in the context of the new
European regulatory framework for the telecommunications sector. In particular, we
analyse whether Skype will affect the boundaries of those markets that have been (or
could be) identified as susceptible to ex ante regulation and whether it affects any of the
criteria used to define these markets. We also analyse whether or not Skype can be
considered as "potential competition", thus constraining the market power of existing
operators in those markets.