The Skype

Internet + Free +“Phone Calls” = Lots of Interest

 

Skype is the famous free downloadable client program (versions available for Windows, MacOS X, Linux, and Pocket PC) from Skype Technologies Limited (www. skype.com) that lets you do free voice sessions (“ telephone calls”) with other Skype users... and, for modest per-minute fees, make calls to PSTN phone numbers (“ Skype-Out”) and/or let PSTN users call you, on a PSTN phone number (“SkypeIn”). Other features available–some for modest fees–include voice mail/messaging, call forwarding, conferencing calling, chat, file transfer, and (if it’s not already available) video.

The term “free” is arguably an oversimplification–to use Skype, you require a computer and Internet access–a broadband connection from your home, costing probably between 20 to 60 US dollars a month, or an account with a WiFi hot-spot provider, or an Internet connection to your company office. Then Skype is “free,” just like using email, Instant Messaging, web browsing, and other Internet applications.

Still, Skype is impressive.

For example, take Dick Schiferli, owner of Pamela Systems

( www.pamela-systems.com), who lives in Munich. Recently, says Schiferli, “I was flying on Lufthansa, where there was

WiFi service on the plane. So I fired up Skype, and called player in terms of registered users, and Internet voice min-my wife, for two cents a minute. Passengers next to me were utes, in every market that it operates in, including the United clearly amazed.” States.”

Is there a “Skype phenomenon”? Schiferli thinks so. “It’s a Not bad for a service that was started in August 2003. disruptive kind of technology, a paradigm shift.” Skype was acquired by eBay back in October 2005, for

As of early November 2005, Skype claimed over 65 million about US$1.3 billion in cash, and nearly that much again in registered users of their software client, with an average of an- eBay stock. (See Doug Mohney’s article, “eBay and Skype,” in other 175,000 download registrations per day (roughly two our November 2005 issue.) At that time, eBay had about twice per second). According to analysis done by broadband man- as many customers as Skype–with only about a 5% overlap. agement Sandvine Incorporated ( www.sandvine.com), back In addition to its tens of millions of users, Skype has as-in June 2005, “Calls using Skype Technologies SA account for sembled remarkable partner momentum in the form of hard-nearly half of the VoIP minutes used ( 46.2%) and about 40% ware, software and service relationships, plus third-party de-of the VoIP bandwidth used in North America.” velopers.

“Skype is used in almost every country,” according to Saul But Skype also raises a number of questions... for which we

Klein, Skype’s VP of global marketing. “It is the number one don’t have all the answers yet.

Phenomenon by Daniel P. Dern