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I know ebay's network effects very well and I understand how they create a competitive advantge. There are network effects with Skype...but as I said earlier nothing will keep with Skype if I can use a Voip sevice with my regular phone.

The point I wanna make is that VoIP will soon see mass-adoption, there will be numerous VoIP services from telco, cable, and ISPs that one will be able to use to basically call for free.

In short, ebay's network effects for its auction system are much more powerful than skype's and that's because most users don't use skype today and will most likely not use skype tomorrow.

Skype could offer the ebay community some valuabe new services, but paying $4 billion for a company with barely 60 million in revenues this year, which is poised to see increased competition doesn't make least to me

IMO, they should not have piad more than 200 mIllion



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