Interesting link up this week between Skype and TDC the Danish incumbent. As noted earlier in the week Denmark has the third highest penetration of Skype. A case of if you can't beat them join them? It does still raise the question of why Skype is more popular in some countries than others. Denmark had been number one until being overtaken in the last six months by Israel and Taiwan. The latter no doubt a result of Skype's rebranding deal in that country. Israel, on the other hand has all the characteristics that might expected prerequisites for Skype. A relatively high broadand penetration, large ex-patriot share of the population and so forth. Why Skype has, to date, been so popular in Denmark is more of a mystery. It is true that Denmark has one of the highest broadband penetrations but as we have seen that is not enough to ensure high Skype take-up. There is a high degree of mobility in the Nordic countries so there may be an element of wanting to bypass TDC, TeleiSonera, Telenor and so forth. Nordics are early adopters in telecoms. Denmark also has some other peculiarities caller connects. As far as I know Danes still pay just to listen to the phone ringing even if it doesn't complete. Another characteristic of Denmark is that VAT is 25% which is one of the highest rates in the world. A Skype user in Denmark would of course only pay 15% (Luxembourg rate) but this would only be important for SkypeOut users. None of this quite explains the popularity in Denmark with a penetration nearly double Sweden and es. Historically TDC was one of the few telephone companies in the world to charge users has soon as they dial. By way of contrast most telcos only begin charging when Norway and Finland no where to be seen.