""One day, we will look back and wonder why we ever paid for phone service, in the same way that we now look back and wonder why we ever paid for e-mail," says Steve Jurvetson, a managing partner at venture-capital firm Draper Fisher Jurvetson. His firm was one of the early investors in both Hotmail and Skype...

...Many telecom insiders scoff at such predictions. They say Skype will remain a niche player and never hit critical mass because competition for voice calls has heated up markedly in the past year. As of the first week of August, 2004, Skype had barely made a dent in the $1 trillion global telecom industry. Since inception, the Skype network has carried 300 million minutes of voice traffic, a fraction of 1 percent of international voice traffic without even counting local phone calls"

Full article at E-Commerce Times.