When I received a “Mention” on a Tweet earlier this week:

my curiosity was piqued. Obviously Marcus had read one of my previous posts about CounterPath’s Bria on the iPad and iPhone and had encountered the CounterPath name in association with a new Rogers service. Over the years CounterPath has become associated with providing IP-based communications clients for enterprise, carrier and consumer use on PC’s, smartphones and tablets.

After some investigation it turns out that this past Monday Rogers sent an email to many of its consumer wireless customers asking them to take part in a beta program for a forthcoming service called Rogers One Number.

The concept basically is to provide a PC softphone that is associated with a wireless account such that conversations can be mirrored onto your PC through a web browser plugin on a Windows or Mac PC. Exchange SMS text messages, place and receive voice calls, there’s even a hint of a video call option in call management menu.

So what does this service deliver? From a web browser you can:

• synchronize contacts with your wireless device address book
• receive and place voice calls
• send and receive SMS messages

Going forward it appears Rogers One Number will also offer:

• links to Rogers Yahoo Mail and GMail
• receive and place video calls

All conversation activity, initiated or received on the softphone, is also reflected on the wireless phone(s)associated with the account. For instance, at this time, a call to my BlackBerry not only rings on my BlackBerry but also results in a call notification on my desktop PC. If I have missed a call a small “missed call” notification appears near the system tray on Windows PC’s. Text messages sent from the softphone also show up under text messages on the BlackBerry. And the service also applies for iPhone or Android phones.

So how does CounterPath come into the picture? When setting up the service there is a CounterPath End User License agreement to be accepted; also Norton Utilities identifies the plugin software as coming from CounterPath. CounterPath’s business model, in their OEM activities, involves providing the chat messaging along with voice and video calling infrastructure behind a user interface designed to an enterprise or carrier  customer’s specifications. In this case Rogers Wireless is the CounterPath customer who is responsible for the final user interface.

From a start-up page a wireless customer can register for the service; once confirmed via SMS messaging of a PIN number you are taken to a setup wizard where you need to enter key information, including a physical location for associating with e911 services. At that point you are asked to download a browser plugin for either Windows or Mac. Once you relaunch the browser you can open up the portal at the user interface and start using the service.

Once set up I made a few test calls with good quality voice. On placing a voice call (green phone icon in the Header bar above) a small call management client appears with options to escalate to video, place a call on hold and end a call. The upper icon bar includes a call log, a dial pad and a settings menu associated with the audio and video hardware. The lower icon bar covers mic mute,switch between multiple calls, switch between “headphones” and “speakerphone” and add a third party for a conference call. The program automatically had designated my FREETALK Everyman Headset as the headphone and Yamaha SoundGadget speakerphone as the speakerphone.

The main question re the video is who can you have a video conversation with? At the moment it would appear to only work with calls where both parties were using the Rogers One Number portal where you can set up video. On a voice call to my Skype client (calling my Skype Online number), the client appears to support the G729 codec; however, given that CounterPath is now incorporating Skype’s SILK into other products, there may be a future opportunity to wider audio bandwidth calling – at least between Rogers One Number web portals, if not to the wireless device itself.

Also of interest is the line “My web phone Emergency Address”. This is the initial setting that one enters when working through the setup wizard addressing a CRTC requirement for support of emergency services.

The images below show the dial pad and audio/video settings. Of significant interest is the potential for support of HD video should a webcam support it. However, until I can find a party who can receive a video call, we won’t know the full answer.

Bottom line: The Rogers One Number client is a recognition that many users have only a wireless phone and a PC; landlines are losing customers, especially with the “under 35” demographic. It’s a convenience that allows their consumer customers to make and receive calls on a PC in parallel with calling activity on the wireless phone. As analyst Jon Arnold mentions in his post, Rogers Wireless “One Number” Launch – Upping the Stakes:

The twist with One Number is that it’s built around the mobile phone, which is pretty much where consumers live, breath and sleep these days….

Anyhow, it’s very much a Web 2.0-meets mobility-meets VoIP mashup, and I think consumers will love it. Most people under 30 have long moved on from a landline, and with One Number, their PC simply becomes an extension of their smartphone – you just don’t need anything else.

To go back to the original Tweet that triggered this post, is it flaky? No, but it’s still in beta. There are a few issues that need to be addressed; however, it certainly addresses the basic requirements of providing PC access to conversation activity associated with a wireless device. Its feature set is not at the level of Skype for both functionality and ease of navigation but it will certainly provide the basic text messaging along with voice and video calling features. (And text messaging will generate SMS revenues for Rogers.)

If there is one major disappointment, it’s that Rogers elected to use a web browser plugin instead of an independent client; that makes it somewhat clumsy to access along with the requirement for always having a browser open. And the browser plugin needs a fair bit of desktop real estate in order to be fully seen; not a client you can put to one side such as Skype or Trillian.

One other question: will this service also incorporate some aspect of social networking where it can follow Facebook and Twitter activity? Given it was subtitled, by default, “My Social Hub” I would expect it to include these features also.

With respect to that most important feature called price – other than to realize there can be associated SMS revenues, we still have not heard what the pricing model is for using Rogers One Number voice and video calls. Most likely it will follow the Rogers Home Phone long distance model where calls from a Rogers Home Phone customer to other Rogers Home Phone customers or Rogers Wireless customers within Canada have no associated long distance charges.

From a wireless carrier business perspective Rogers One Number is a feature that introduces unique competitive positioning into a Canadian market where six carriers are now looking for customers. For that reason I cannot see any other charges beyond what is currently charged for wireless services.

Check out Jon Arnold’s complete post for another perspective.

Yesterday long time acquaintance Andy Abramson put up a post Skype on Three-Me Too, Me Also, No Longer Me Different where he states “Now 3 no longer has the same Skype service in the UK…” and concludes with “…. now Skype is back to being just a IM based calling service online with a few hooks to the PSTN”. I beg to differ.

Andy is talking about 3’s Skype service that was launched in late 2007 using a hybrid solution that allowed IM and call signalling data to be handled over the data channel while the actual voice call went over the carrier’s GSM voice channel. It provided a way to make free calls to Skype contacts worldwide while using SkypeOut for calls to the PSTN outside the home country. In fact I was on a 40 minute call with a 3 user on the INQ phone earlier today; however it’s lifetime as a service appears to be coming to an end.

Skype on 3 also was significant in building a customer base for 3 who was a fledgling 3G service trying to enter a U.K. market dominated by somewhat larger players. At the time all the reviews were positive; it was well received by a younger demographic keen to expand their social networking circles. Initially the service was offered on “brew”-based 3 Skypephones; later it also became available on the “brew”-based INQ phone with its social networking features. However, for infrastructure It did require “gateway” servers using iSkoot’s software that had developed this protocol. And, as pointed out in an iSkoot presentation at the initial eComm 2008 there were royalties paid to both Skype and iSkoot associated with the monthly subscriptions involved. From the carrier perspective, the economic key to providing this unlimited calling service was that Skype-to-Skype calls had no termination charges as they go direct to the end user contact without any requirement for termination by another carrier.

In the spring of 2010, Verizon launched its Skype mobile service using a similar protocol to much fanfare. Skype’s carrier-specific arrangement with Telus was very different with respect to the services offered, especially the Skype client and the associated Android phone.

But times are changing; the key for addressing these changes is how 3, working with Skype, can make a transition that keeps their customer base while offering Skype calling through alternative arrangements:

• Brew-based phones have been outsmarted by smartphones from Apple, Android and RIM. I would imagine today’s demand for an INQ or 3 Skypephone has diminished to a level that does not encourage further manufacturing.
• Skype has since launched full Skype clients on iPhone and Android phones, offering not only chat and voice but also video calling.
• Not only do these clients  use the data channel of wireless carriers for voice and video but they also support Skype’s SILK codec for optimum voice quality.
• Data plan rates have come down by orders of magnitude from charges four years ago; the launch of iPhone helped drive these down.
• There is carrier and Skype overhead in running the iSkoot servers at 3.
• I would imagine, partly based on some anecdotal information, that many of 3’s customers who had 3 Skypephone and INQ phones have migrated to other phones. While both iPhone and Android phones are market players in the U.K. that same youth demographic actually has been strongly attracted to BlackBerry and its BlackBerry Messenger feature.

The bottom line is that the entire mobile market has evolved and 3’s initial Skype calling service has been left in the dust. Skype says these services are still operating in U.K., Australia and Ireland, probably due to the current size of the user base yet they will go away in the near future.  However, at some point I would imagine 3 would have to be working on a strategy to phase out its initial Skype service and transition their customers to newer platforms.

As for “No Longer Me Different” it is too simplistic to say Skype only offers IM and voice services duplicated by others. From both Tony Bates’ post, Tony Bates Weighs in on Microsoft’s Acquisition of Skype, and the accompanying infographic, expect to see a heavy emphasis on Skype’s video calling where there has been no duplication that combines the available resolutions (VGA, HD), frame rates (30 fps, 22 fps) and minimum network upload speed requirements by any other service provider. Of course there is also the other strength of having over 170 million active users that remains a key differentiator.

While 3 has definitely demonstrated the demand for Skype services on mobile platforms, both the market players and underlying wireless carrier infrastructure have changed over the past four years. The questions that arise include:

• How long will Verizon continue with its Skype mobile offering? We have already seen Verizon’s plans for offering Skype over its LTE network using Android phones where the focus was on video calling.
• While Verizon’s service could be replaced with Skype for Android on its Android phones, what would happen to its BlackBerry customers who would not have a native Skype for BlackBerry client?
• Can Skype address the battery drain issue on both Skype for iPhone and Skype for Android to provide users with the same user experience as Skype mobile in terms of recharging frequency?

It’s easy to want to position a perception that other players can be competitors of Skype; however, the real challenge for MicroSkype is how to build a business that justifies a $8.5B purchase price, not how to skirmish over services whose usefulness and viability has been overtaken by the evolution of the market participants and carrier infrastructure.

Full disclosure: the author has made the only 3 Skypephone call on the Rogers network back in early 2008. Ten minutes cost me about $100 as Rogers did not have an iSkoot server available.

Three months ago Skype and TELUS announced an agreement whereby TELUS Mobility, a Canadian carrier, would become proactive in supporting Skype through several initiatives:

• Providing full platform and customer support for the use of Skype on iPhones and Android phones
• Offering a Skype edition LG Optimus Black phone powered by Android with a pre-installed Skype client, support for Bluetooth connectivity and 60 minutes of SkypeOut calling
• Purchase of Skype credit in $5, $10 and $20 amounts charged to the customer’s TELUS account
• Offering Skype with TELUS’ Data Flex Plan whereby data charges are automatically incremented with increased usage. For instance, using <500MB in one month will cost $35 but using 1MB to 2MB in the subsequent month would cost $55.

Late last week I received promotional emails from Skype (in fact, one email for every Skype account registered in my name) that would appear to be going to Skype’s Canadian users. This is the first indication that TELUS is now executing on their agreement with Skype.

On scanning the TELUS Mobility website:

• Skype is proactively being promoted on any iPhone with iOS 4.0 and any Android phone with at least Android 2.1
• Skype credit can be purchased either from a telusmobility.com web page or via a text message that delivers the link for purchase.
• Skype effectively becomes the recommended international long distance service for any of the supported phones
• TELUS is deploying Skype on their 4G network with 21Mbps speeds, being upgraded in many locations to 42Mbps and LTE over the next few months. However, they expect users to see download speeds of 4-6 Mbps in practice.
• Skype is also being heavily promoted on their recently released Samsung Galaxy S Fascinate 4G running under Android 2.3. A $29.99 purchase price requires a minimum $50/month voice and data plan.

The one cautionary note is battery life. As mentioned in a previous post covering Skype for Android,  when running Skype, battery life can be shortened to as little as 3 to 4 hours. This is reinforced on some otherwise very favourable TELUS user comments on the Samsung Galaxy S phone (click on the Reviews tab):

It does have a good battery life, as long as you are closing your apps and other programs properly. Leave stuff open, watch too much video, use the camera, and other battery-draining apps, and yes you will run your battery dry in 1/2 a day. Use it in moderation, along with your casual texting and communication tasks and you will be fine for a day’s worth.

The combination of a 4G Samsung Galaxy S Android phone with Android 2.3 should be sufficient for making Skype video calls on the Fascinate 4G. However, as TELUS is effectively pre-installing a Skype client on these phones, they need to complete some testing and Android software upgrades before confirming that video calling works. In the meantime, if you are able to have a video call experience with either of these phones, please enter a Comment below. TELUS did inform me that video calling will work with the forthcoming 4G Samsung Galaxy S II X .

Skype’s support by TELUS is different from its previous offerings with Verizon in that TELUS is supporting a full Skype for Android peer-to-peer Skype client delivering Instant Messaging, participation in Skype multi-party calls and mood message – and it works over an LTE network. Based on other Skype for Android features it should include native address book integration; as discussed above it certainly has the potential to work with Skype video calling.

The initial Verizon service is a voice and Instant messaging service over a 3G network with no potential for video calling due to its underlying calling architecture which also requires gateway server overhead. On the other hand Verizon did announce plans, at CES, for offering new Android phones that would run Skype, including video calling, on their forthcoming LTE network. (But Andy Abramson seems to be having difficulty with video calling of any kind specifically on Verizon.)

Bottom line: TELUS is now offering full support of Skype on iOS devices and designated Android phones, where the latter is providing customers with a seamless path to both acquiring and sustaining Skype services. Provided they have an appropriate data plan users can make free voice (and video?) calls worldwide to their Skype contacts and low cost international calls to landlines and mobile phones worldwide.

For Skype it becomes another contribution to SkypeOut revenues; there is no mention of any royalty arrangements when it comes to revenues generated associated with the purchase of Skype-enabled Android phones. TELUS, as Canada’s third wireless carrier in subscriber base, demonstrates its aggressiveness once again through a unique offering in the Canadian market. While making it available to their existing customer base, time will tell if Skype support becomes a primary reason for adopting Skype; I have yet to see any TELUS advertising promoting  Skype.

Related articles

• Skype joins forces with TELUS to bring affordable international calling rates to customers in Canada (blogs.skype.com)
• Skype 2.1 for Android enables video on majority of Android devices (blogs.skype.com)

Last week Skype and TELUS Mobility announced an agreement, where Canada’s third largest national wireless carrier will be closely working with Skype for free Skype-to-Skype and low cost SkypeOut international calling. While Canadians can use Skype for iPhone and Skype for Android on any Canadian carrier offering iPhone and Android phones, this agreement represents the first formal agreement between Skype and a Canadian wireless carrier with value-added services.

To give some background, both TELUS Mobility and Bell Mobility were spinoffs of legacy landline carriers where TELUS covers British Columbia and Alberta while Bell covers Ontario and Quebec. Since their respective cellular networks commenced operations back in the mid-1980’s , both have expanded to cover the entire county for wireless services; in TELUS’ case they acquired a major Bell/Rogers competitor who covered Ontario and Quebec.

However, whereas Rogers, the leading national carrier has always supported GSM protocols, TELUS and Bell both launched their services using the CDMA protocols (a la Verizon and Sprint in the U.S.). The 2010 Vancouver Winter Olympics, where Bell Canada was the “official carrier”, was the stimulus for Bell Canada to upgrade their network to GSM-compatible HSPA+ service in November 2009.

But this is a large country, 90% of the Canadian population lives within 160 kilometers (100 miles) of the 6,000 km (4,000 mile) U.S.-Canada border. So the capital cost for a new network infrastructure, so long yet so narrow, runs up quickly. As a result Bell Mobility and TELUS Mobility partnered to build one 4G/HSPA+ network infrastructure to support the two retail operations. One ironic twist is that, at the time of the network’s launch in the fall of 2009, Bell and TELUS both launched an offering for the iPhone 3G S (and later iPhone 4) which already had support for HSPA+.

Launch of this network broke not only the Rogers Canadian monopoly on the Canadian iPhone franchise but also its monopoly on international roaming for visitors to Canada (since most of the world’s carriers supported GSM). There also occurred some legal and regulatory battles (Bell/TELUS vs Rogers) over the promotion of each network’s speed ; effectively they ended up in a draw. (Note also that Canada’s two legacy CDMA carriers were offering iPhone a year before Verizon could launch a CDMA-compliant iPhone in the U.S. market.)

From its launch in late 2009, TELUS has called their network a 4G 21Mbps network, with a speed increase to 42Mbps this year and plans to go to 4G/LTE “coming soon”. So they certainly have the data speeds required to support Skype calls over a data network using a native carrier-agnostic Skype client.

Under the leadership of CEO Darren Entwistle TELUS has been noted for aggressive, “outside-the-box” marketing initiatives that appeal especially to a younger demographic . The most recent example occurred earlier this week when, following release of a OECD report pointing out that Canadian carriers had some of the highest international roaming charges anywhere, TELUS came back immediately announcing they would be reviewing their roaming plans with a view to lowering roaming costs.

Upon reviewing the Skype/TELUS press release, along with responses to some questions I posed to Skype’s PR agency, here is how I see the positioning of the service:

• TELUS customers will be using Skype for iPhone and Skype for Android installed on the relevant devices via downloads from the respective application stores or via the web at skype.com/m.
• TELUS will be reinforcing the customer experience by providing enhanced customer support for TELUS customers using Skype on their smartphones
• Skype Credit can be purchased directly from the TELUS customer’s mobile phone with the transaction billed to his/her TELUS account
• A Skype edition LG Optimus Black phone will be launched in July by TELUS to give customers easy access to Skype through a pre-installed icon on the home screen, a detailed “getting started” guide, and Skype Credit to begin making calls to landline and mobile phones immediately
• TELUS customers will be able to make free Skype-to-Skype calls worldwide as well as use Skype’s Instant Messaging presence and chat features.
• TELUS  customers will be able to make calls to landlines outside Canada (and mobile phones in countries where phone owner pays for inbound calls) using either Skype Calling Plan subscriptions or Skype Credit on a pay-as-you-go basis.
• Carrier data charges will apply when used over the 4 G network. TELUS recommends a Data Flex plan or Wi-Fi connection when making Skype calls (according to the TELUS website)
• The Android-based LG phone will support Bluetooth connectivity (not available with Skype for iPhone currently)

Here’s my take on the announcement:

• This is Skype’s first carrier arrangement involving carrier-endorsed support of the native Skype client on a mobile smartphone as compared to the carrier-specific “Skype mobile” arrangements with Verizon and 3.
• It’s a major marketing move by TELUS to associate itself with leading edge services without the need for any major capital equipment costs (such as “Skype mobile” gateway servers) other than those already planned for their 4G evolution.
  • There are ongoing operations costs for TELUS involving marketing and customer support.
  • Skype does not have to develop a carrier-specific application for these services
• Skype’s significant data requirements will drive demand for TELUS data plan subscriptions and ARPU when the customer is making calls, including Skype-to-Skype calls, from within Canada.
• For the supported smartphones Skype basically takes over TELUS’s responsibility for managing TELUS Mobility’s international calling with Skype revenues coming from Skype Calling Plan subscriptions and Skype Credits required to make international calls to the PSTN.
• One would have to assume the above two revenue drivers would incorporate revenue sharing between TELUS and Skype.
  • Question: are there any Skype software royalties involved based on customer revenues?
• Will the LG Skypephone support Skype mobile Video that was announced for Verizon at CES 2011 or an equivalent service?
• When roaming internationally, it would be wise to turn off 3G/4G and only make Skype calls from WiFi connections in hotels, airports, restaurants, offices and other WiFi hotspots – which are quite prevalent in Europe from my own experience over the past two years.
  • Is WiFi growing as a Stealth Carrier? Can it be a viable alternative to roaming charges?
• Skype-to-Skype messaging will certainly impact TELUS revenues for SMS text messaging services but Apple’s recent iMessage announcement will probably have an even larger impact on carrier SMS messaging revenues
• With no native Skype for BlackBerry application, TELUS’s Skype service will not be available to their BlackBerry customers.

One final but very important concern: will the supported phones have enough battery life to support this initiative? I have covered this issue previously with some suggestions.

And one irony: While there are no Canadian Skype Online numbers available due to a conflict between a regulatory issue and Skype’s past policies re e911 services, TELUS Mobility customers can now set up as many as ten Skype Online numbers in any of the 26 countries (U.S., U.K. included) where Skype Online numbers are available. Calling a “local” Skype Online number in those countries, an “expat” relative or overseas customer can reach a TELUS Mobility customer via Skype on a call that would have no termination charge revenue for TELUS.

Bottom line: Skype is once again being endorsed for its ability to be a marketing tool that attracts a younger “always-on” demographic seeking lower cost communications and new communications services. Skype is a service that has a low implementation cost for TELUS while taking advantage of their higher speed network, yet expands TELUS’s appeal to a country where international communications plays a significant role not only for business but also for the various ethnic communities that want to keep in touch with relatives and friends in their country of ethnic origin.

We look forward to following its actual implementation, especially the launch of the LG Skypephone and its feature set, over the next couple of months.

In a press release associated with its participation at Mobile World Congress Skype has announced an expansion of its Skype Access service to include eight additional hotspot operators. According to the press release:

With one click, Skype users can connect to the Internet through a WiFi operator partner in over 500,000 hotspots around the globe including 500 airports, 30,000 hotels and numerous cafes, trains, planes, offices buildings, and convention centers.

Rather than paying costly per day or per hour Internet access fees, Skype Access allows you to pay per minute using Skype Credit to control your costs at rates starting at £.04 /€.05/$.06per minute [including VAT]. All you need is a connection to a Skype Access compatible hotspot and the latest version of Skype for Mac or Windows.

Skype has arranged for free use of Skype Access across Spain (including at this week’s Mobile World Congress) for the week of Feb. 14 to 18, 2010 (using CET time zone). It would be interesting to know how many iPhone users are making Skype video calls to/from their colleagues attending the conference and the resulting load on the WiFi network.

At rates as low as £.04 /€.05/$.06 per minute Skype Access over these operators appear to be offering significantly lower than the $0.19 cents per minute charged for using Skype Access over Boingo with its over 200,000 WiFi hotspots worldwide (Boingo’s continued participation as a Skype Access partner has been confirmed).

The new Skype Access provider partners include:

• BT Openzone – The UK’s largest WiFi hotspot provider with a network of two million hotspots
• Fon – The world’s largest WiFi network with over 3.35 million Fon Spots across the globe
• M3 Connect – WiFi provider in Germany with hotspots in many hotels, fairgrounds, airports and places like the German Stock Exchange
• Row 44 – Provides the world’s leading in-flight broadband platform to commercial airlines around the world
• Skyrove – WiFi hotspot solutions for Guesthouses, Hotels and Coffee Shops throughout South Africa.
• Spectrum Interactive – Specializes in offering WiFi for the travel and media sector including airports and hotels across the UK
• Tomizone – WiFi provider in Australia, New Zealand and the South Pacific
• Vex – Offers WiFi services in thousands of locations around the world including South America

Bottom Line: Whereas the rates for using Skype Access over Boingo tended to make it a “last resort” WiFi access service (while avoiding costly carrier roaming charges), Skype Access has become a more accessible and reasonable cost alternative to travelers worldwide. On the other hand, when at a specific location, you usually have only one choice for WiFi carrier. At hotels and airports it represents an alternative to “daily” charges for short term access sessions during a stopover or brief hotel stay. Most importantly the WiFi “Unregulated Stealth Carrier” experience is now available to Skype users at over 700,000 locations worldwide.

Related articles

• Skype Can Now Get You Access to 500,000+ Wi-Fi Hotspots (mashable.com)
• Skype buys a week of Wi-Fi for Spain (skypejournal.com)
• Skype launches global WiFi hotspot program (gizmag.com)

Following the Mood Messages of a Skype employee in my Skype Conversations window I came across this last Friday: “brand new version of Skype To Go available. Dead simple to use, nothing to download, call directly from your contact list !” Curious, I went to my Skype To Go subscription where I found all six of my Skype To Go contacts had suddenly, and spontaneously, sprouted individual 647 numbers (647 being the overlay area code for Toronto’s legacy 416 area code).

Previously I had a single Toronto-based Skype To Go number which I would call to access one of my six contacts by selecting a number between “1” and “6” when I called the number. This process, using a Bluetooth connection between my BlackBerry and car audio system,  meant my “hands free” calling to this number in my car required that I actually use the keypad on my car’s “phone” panel. The new Skype To Go resolves this issue and more.

Here’s what’s new:

• Up to nine Skype To Go contacts can be designated; each with an individual Skype To Go number
• Up to five of your mobile or landline phones can be registered as valid phones to use these numbers
• When calling from a registered phone to one of the nine contacts, there is no need to wait for any voice prompts; the connection is now immediately made.
• Validated with a PIN and entering one of the registered phones’ numbers, one can call these numbers from any other phone.
• You register also the Country and Area Code you are calling from. When you move to another Country you can change the registered Country and get new local phones numbers for each of your Skype To Go contacts. But when you return to your “home” country you will get back your original Skype To Go numbers.
• The listing also shows what your charges are to these numbers below the destination number.
• You can select which of the registered numbers you want to display as your callerID when making these calls.
• What’s not changed? Your old Skype To Go number which you can still use for calling numbers not included in your Skype To Go contact list.

Skype To Go numbers can be obtained in 23 countries (note that Canada was added earlier this year):

So what’s the cost?

• If the number called is on one of your Skype subscription plans, there is no charge to landlines and mobiles in the eight countries with totally unlimited calling; for the 33 countries with unlimited calling to landlines only you pay the going Skype calling rate for calls to mobile phones (for instance, $0.317 per minute to mobile numbers in Spain). Note that Skype’s fair usage policy applies.
  
• If not on a subscription you pay, via Skype credits, the normal SkypeOut charges plus a connection fee.

Bottom line: I can now make totally hands free calls to these nine “most frequent” contacts using Skype To Go from my car via my BlackBerry or iPhone simply by pressing the “Enter” button on my steering wheel and saying “Call [Name] Other”. To simplify this process I have recorded these Skype To Go numbers under “Other” in my smartphone and Outlook address books. Back to total compliance with Ontario law regarding use of mobile phones while driving.

The bonus: I added my wife’s BlackBerry as a registered phone and she gets to call three relatives in another Canadian city at no cost when calling from Toronto’s rather large local calling area, encompassing four area codes. (With 90% of  its population spread out across a belt 100 miles wide and 4,000 miles long, Canada still has long distance charges, although they are gradually evaporating into carrier calling plans at low or no cost.)

Since its release late Saturday, Skype for iPhone 2.0, with its support of calling over 3G carriers and superwideband audio using Skype’s SILK codec, has set the blogosphere awash with two genres of commentary: those who seem to think the end of free Skype calling is approaching as an Armageddon and those who recognize the launch of Skype for iPhone 2.0 as not only setting a new benchmark for mobile voice calling, especially for call quality, but also having a significant impact on the overall smartphone market.

Re the “small fee” (now set to start at the beginning of 2011), I simply say this is one more sign that Skype is a business with investors who are looking for a return. Nobody can argue about its value-add, both in terms of providing international mobile calling convenience but also by delivering a significantly enhanced user experience through establishing a new benchmark for mobile call quality. This outcome definitely justifies a “small fee”, provided it is not obsessive. Alec Saunders, author of the Voice 2.0 Manifesto, positions this issue appropriately in “Skype’s “small fee” is noise, guys”:

Sometimes you have to really shake your head at the quality of the commentary on the internet.  Fact: Skype has finally released a version of Skype for iPhone that supports calling over 3G networks.  Never mind the fly in the ointment that all the commentary is  stuck on – the fact that Skype wants to charge a “small fee” for you to use it on a 3G network.  Frankly, that’s noise.  People will pay for the ability to make a high quality Skype call on 3G, and not pay their carriers long distance termination charges in foreign markets.  So long as the fee is reasonable, nobody is going to object.

Alec goes on to make several points about what the launch of Skype for iPhone 2.0 really means; his post is well worth the read. (Full disclosure: as Canadians who participate in the Canada Pension Plan, Alec and I each have a $17.50 investment in Skype.)

As for the new benchmark for mobile phone call quality, there are several impacts. But first, if you have not heard it already, click here to hear Skype for iPhone 2.0’s “near CD-quality” call first hand between myself and Dean Elwood in the U.K.

Andy Abramson comments on how deeply Skype developers may have gone into the iPhone hardware to achieve this result in “Skype on 3G-Something Borrowed, Something New”; he concludes with:

How good? Well put it this way..why would anyone with an iPhone want to call over old AT&T after their first Skype over 3G call. Oh, and yes, it makes Skype on Verizon sound like, well, a plain old telephone call…..Ma Bell, you’re back sounding like you’re old self. The way the boys in the labs have always dreamed and said you could.

Over at Voyces.com, in “Skype for iPhone over 3G: An Industry Benchmark Game Changer for Skype”, I have commented on the broader impact of Skype for iPhone’s support of SiLK. Simply put, it has the potential to place Skype as a key mobile communications software infrastructure supplier across the entire mobile phone industry. Not simply because of the technology itself but rather as a result of demonstrating high quality voice calls accessible to Skype’s several million users through a single application for the iPhone resulting in several million end user experience – the “Skype network effect”.

With the support of SILK in a smartphone application that runs over both 3G and WiFi, calling costs become almost secondary to an exceptional end user experience with voice quality on mobile devices.

SILK has now become not only a benchmark but also a key communications infrastructure element. End users will pay for a quality experience, especially when it impacts business productivity. Both wireless carriers and smartphone vendors need to rush to ensure they have incorporated Skype’s SILK technology into their offerings. Otherwise the iPhone (iPad and iPod Touch) have one more key feature that sets them apart from the remainder of the smartphone users.

Dean Elwood sums up this “Skype network effect” best when he talks about the Skype “on-net” calling:

The proposition for Skype’s shareholders is the fact that you have to be on the Skype network in order to get the “near CD-quality”. Because you don’t get hi-def when you call a regular landline or mobile, only another Skype-enabled device. So if you want to make free calls to your friends, they all need to get on the Skype net.

and concludes with…….

It’s the mass-market adoption of Skype that makes it work. You need to be on their network, along with other contacts you call regularly, to make it work for you. So in the absence of interconnect, which Skype do not do, your a. n. other mobile VoIP carrier of the future has to start from the ground up.

Bottom line: Dean backs up his observations by telling me that he will be making most of his voice calls using Skype for iPhone when away from his office. It would be most interesting to see not only if this drives more users to using Skype as opposed to the carriers’ voice channels but also the fallout for the transition of communications from a very hardware-oriented infrastructure to a complete software infrastructure operating totally “in the cloud”.

Next: the questions that remain to be answered going forward.

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Normally when Skype has made a major release, Skype PR will provide a heads-up to bloggers and other technology media a day or two ahead of time under an embargo until a defined time. This allows Skype to better manage the message to the market in terms of at least answering initial questions that may arise as a result of a pending release. However, when i returned home from a Saturday evening dinner today I started to find Twitter messages about Skype for iPhone over 3G becoming available.

Turns out that I had updated my Skype apps earlier today with no sign of a new version of Skype for iPhone. But when I checked again a few moments ago, sure enough, there was a new version of Skype for iPhone ready to download – the long awaited and much anticipated Skype for iPhone that works over 3G. But most interesting is the lack of the usual Skype blog post(s) announcing the availability of this release. Given that Skype does not have final control over Apple App Store releases, it should not be a total surprise that this has happened during the “quiet period” of a weekend. .

On downloading Skype for iPhone version 2.0 I found the overview screen shown on the right. Most interesting is the comment:

“Call using your 3G connection. Skype-to-Skype calls on 3G are free until at least the end of August 2010, after which there will be a small monthly fee (operator charges for data will still apply).” Update: according to the eventual press release, the free period has been extended to the end of December 2010.

Here’s the probable explanation: For Skype on 3 and Verizon’s “Skype mobile”, you need to be on a carrier voice and data plan that incorporates Skype calling, including free Skype-to-Skype calls. As was explained by iSkoot (who wrote the original code for Skype on 3) at eComm 2008, Skype receives a monthly royalty for each data and voice plan subscriber; effectively it is a royalty for licensing the Skype software.

But Skype for iPhone 2.0 is carrier-agnostic and involves no agreements with the various individual GSM/HSPA+ carriers. As a result it appears that Skype intends to charge a “small fee” for Skype-to-Skype calls after September 1, 2010. Some points:

• this eliminates the need for Skype to make agreements with individual carriers, who will already have the potential to benefit from the extra data usage (and new service subscribers) Skype for iPhone over 3G will generate.
• Skype already has a billing engine in place for acquiring Skype credits and Skype calling plans
• Skype for iPhone over 3G should also support SkypeOut calls over 3G with Skype using a Skype calling plan or Skype credits but paying no “affiliate commission” back to the carriers.
• Will the current calling plans incorporate an option for Skype over 3G?
• Question: will we see similar charges for Skype-to-Skype calls made using Skype for Symbian (which runs over 3G), a much rumored Skype for Android or, if we ever see it, a Skype for BlackBerry?
• Will be seeing a “less small” for Skype video calling over 3G, such as I experienced from a Nokia N900 user a few days ago?
• Be wary of using Skype for iPhone over 3G when roaming. Remember that those relatively expensive roaming charges will run up quickly during a Skype-to-Skype call made over 3G. This would even apply when you answer a Skype-to-Skype call via your 3G service.
• Stay with using Skype for iPhone over WiFi when roaming; after all WiFi is becoming the stealth carrier of choice.
• Skype for iPhone 2.0 with 3G support will be the true test of carriers’ willingness to allow IP-based voice communications services.  My local test will be Rogers’ adherence to its previously announced support of Skype operating over any of their services.

Of course attempting to make a Skype-to-Skype call late Saturday evening presents one other challenge – most of my Skype contacts whom I would call at this hour (11:00 p.m. GMT-4 or EDT) are offline. But I’ll make an attempt during the day Sunday and report on the actual call experience and the other new features mentioned in the App Store overview screen.

Meanwhile you can download Skype for iPhone 2.0 at the Apple App Store.

Note: This post has been mildly updated from the original posting made at midnight Saturday; a few hours’ sleep tends to generate a couple of additional points.

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A month ago at Mobile World Congress, Skype and Verizon stole the spotlight by announcing Verizon’s forthcoming Skype mobile service. This afternoon at CTIA in Las Vegas, Verizon and Skype announced that the service will launch in two days on Thursday, March 25 (think Christmas in March).

If there was one overriding theme that came out of the press conference today, it was “it’s about the user experience”. Skype’s Russ Shaw emphasized this during our CES interview in January; Josh Silverman, Skype CEO and John Stratton, Verizon Wireless Chief Marketing Officer, reinforced this during the Mobile World Congress press conference.

So what is this “user experience” that “it’s all about”?

• Make it as easy to make a Skype call as to make a circuit switched wireless call.
  • Find a name in the address book and press a “Call” button.
• Provide free Skype-to-Skype voice and IM conversations to any Skype contact worldwide
  • Without any charge against voice minutes or data usage
• Provide an “always on” experience by allowing the application to run in background
  • Receive IM chat messages and Skype voice calls while running other applications
  • Provide ongoing “presence” status via Skype IM
• Merge the device address book with your Skype contacts to ensure ready availability for both making and receiving a call
  • whether a normal voice call, a Skype-to-Skype call or an international call via SkypeOut
• Run the voice conversation over a proven, scalable, reliable voice network
  • that also has maximum geographical coverage
  • receive calls anywhere, anytime – not tethered to a PC for Skype conversations
• Optimize for longer battery life
• Make the download and installation a default with minimal, if any, user intervention
• Make it available to all your existing customers who have bought either BlackBerry or Android smartphones in the past
  • going back to the original 8830 BlackBerry World Edition and the Curve 8330
  • also available on the BlackBerry Storm, Storm 2, Curve 8530, Tour 9630 and three Android models
• Two other points made: the service is CALEA-compliant and E911 access remains available via the Verizon voice channel.

Customers will be able to access and install Skype mobile in one of four ways:

• For existing BlackBerry customers the application will be pushed to their BlackBerry’s home screen over the next few days after launch
  • New BlackBerry customers will find the application on their home screen
• Android users will be able to install the application from the Google App store
• The application can also be downloaded by going to www.skype.com/go/mobile
• Text “SKYPE” to 2255 to receive a download link

While there is no universal Skype for BlackBerry yet, the Verizon offering demonstrates how Skype can take advantage of the BlackBerry’s feature set:

• optimize for battery usage
• “always on” Skype connection by running the Skype mobile client in background
• using BlackBerry’s “push” technology to push the Skype application to all (existing) Verizon customers on BlackBerry

There are some limitations:

• No WiFi; must be in a location where Verizon signal is available
  • not deep in an underground location
• No roaming with Skype;
  • Skype calls can only be made while on the “Home” Verizon network in the U.S.
• Limited audio bandwidth using the inherent Verizon voice network
  • No SILK codecs involved; probably G.729

One final note: When asked about exclusivity, Skype’s Russ Shaw, GM for Mobile replied to the effect that “the Skype mobile experience is exclusive to Verizon” and that “features and functionality won’t be elsewhere”. Leaves a lot open to interpreation; we’ll see as Skype for Symbian and Skype for iPhone evolve.

Bottom line: While it will be a great service for Verizon’s customers wherever they are in the U.S., there are limitations such that the service is not available for international travel. It’s a service that is not only available to new customers but to their entire legacy base of BlackBerry and Android users.

The service, however, provides an initial step for getting Skype onto a mobile service with revenue generation for both Verizon and Skype. The big question is “Will it drive new users for Verizon?”

Yes, this post only covers the basics; more commentary to follow.

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With the release of Skype 4.0 for Windows beta 3 a year ago February, Skype first introduced their superwideband SILK codec. A month later at eComm 2009, Jonathan Christensen announced SILK’s availability for third party partners with royalty free licensing of the SILK codec. Since then it has been incorporated into all subsequent releases of Skype for Windows 4.x, Skype for Mac 2.8 and Skype for Linux. Recently Skype announced that the SILK codec will be supported in the next release of Skype for iPhone.

What does the SILK bring? Basically the best quality “in-your-head” audio available for voice conversations. To recall Jonathan Christensen’s highlights at the time the SILK codec was first introduced, the focus was on:

improving the audio bandwidth out to 12,000 Hz (12KHz)

providing bandwidth management to deal in real time with degraded  network conditions

balancing the codec optimization between voice, music and background noise, each of which can have an impact on the overall user experience

overall robustness to provide a more consistent user experience, regardless of network conditions and an individual caller’s voice signature.

From a user perspective, one will notice crisper conversations, easier interpretation of accents and an overall high quality “in-your-head” voice experience.

But there have been other consequences of SILK’s availability:

• The FREETALK Everyman Headset for Skype ensures that users get the full benefit of SILK by providing an audio chip that effectively replaces the PC’s native audio chip to bring consistently the full benefits of the audio quality available with SILK.
• Similarly the more recently introduced FREETALK Freedom Wireless Stereo Headset also supports SILK’s audio bandwidth.
• A push-to-talk offering, Blabbelon, which provides the ability for gamers to communicate in a multi-party voice algorithm used by gamers, has incorporated the SILK codec, setting a new standard for gaming voice sessions.

But here’s the bigger picture: in order to have a voice conversation that takes full advantage of SILK, the end points of the conversation must incorporate the SILK codec and the telecom infrastructure must support the transmission of SILK conversations.

• The three Skype clients make this possible for end-to-end Skype-to-Skype calls between PC’s (and iPhones with the next Skype for iPhone release);
• Invoking SILK in Blabbelon by default results in every call participant’s taking full advantage of SILK since it is incorporated into the SILK client.

Incorporation into Skype for iPhone will only take advantage of SILK should the other party also be on a Skype client. But:

• SILK is not currently supported in the recently released Skype for Symbian.
• Nor will it be used in the Skype clients being developed for use by Verizon customers due to the need to link the user’s smartphone to Verizon’s Skype gateway using the underlying 3G wireless voice channel.
• SILK cannot be invoked on SkypeOut calls to the PSTN.
• Nor is it supported yet on any other third party smartphone or other end point handset or phoneset hardware.

And therein lies the challenge: how does one propagate SILK such that it becomes available beyond the Skype and Blabbelon worlds? Skype has taken the first step by making the SILK codec available royalty-free and publishing the source code. However, for broadest adoption it needs to become a recognized international standard.

Recently Skype has been working with the IETF’s “CODEC Working Group” as one candidate to be considered in the working group’s effort to identify and standardize a superwideband audio codec that could be widely used across IP-based conversations. In a “Speaking of Standards” post earlier today, Skype releases source code for SILK super wideband audio codec – the details…, Voxeo’s Dan York has provided an excellent detailed background, including both the political and technical considerations leading up to the adoption of such a codec as an IETF standard for interoperability across service providers and end point software and hardware suppliers. He concludes with:

Still to be seen is if there are any additional licensing terms from Skype, but overall this is a great step forward for those of us who want to see better overall audio quality on the Internet. Obviously it’s in Skype’s interest to do this so that the CODEC WG might consider SILK as the codec to standardize on versus the others or creating a new one… but still… it’s great to see. What do you all think?

And it sure helps Skype’s case that Skype has recently hired executives who have IETF working group experience such as Director of Developer Relations, Jason Frischl and Chief Technology Strategist Dr. Julian Rosenberg.

Bottom Line: Ever since the launch of SILK, it’s very noticeable when one is not on a SILK call. SILK can bring significant business productivity advantages when there’s less of “can you repeat that?” or simply misunderstanding of the speaking party. It makes everyone in the family more readily understood during those grandparent Skype video calls. It’s all about improving the end user experience.

There are many efforts to incorporate “wideband (8 Khz)” HD Voice into the telecom infrastructure. GIPS has some excellent wideband codecs; Jeff Pulver is running HD Voice conferences. While HD Voice is definitely an improvement on today’s standard PSTN voice calls it is not up to the quality of SILK-supported calls.

However, spreading SILK’s quality of conversation requires not only the appropriate hardware or client software, as described above, but also support of SILK in the telecom back end infrastructure. Having a standard that every player making the conversation connection possible can work towards would be a major step forward in “clearing up the conversation” when on a voice call.

Update: Skype’s Jonathan Christensen provides an update summary about the SILK codec in his Skype blog post “Advances in audio”. He reiterates the focus he described a year ago:

• improving audio bandwidth going from 8 kHz to 12 kHz, meaning that a SILK conversation sounds like you are in the same room as the person you are speaking with
• providing real-time bandwidth scalability to deal with degraded network conditions
• balancing codec optimization between voice, music and background noise, each of which can have an impact on the overall user experience
• delivering a robust solution that delivers a more consistent audio experience, regardless of network conditions and an individual’s voice signature

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It’s almost a week since the close of the 2010 Winter Olympics in Vancouver and Whistler, B.C. – an area where I have spent a lot of time over the past thirty-six years, mostly on business but also on (ski) vacations. These Olympics turned out to be a defining moment not just for Canadian athletics but simply for bringing the country together. (Seventeen days without politicians in the headlines is an totally positive experience and a welcome relief. Leave it to the athletes to build a sense of national unity.)

A Winter Olympics record 14 Gold Medals for some really dedicated, yet enthralling, Canadian athletes (and 26 medals in total), gold medal hockey championships for both the men and women and, let me say, as never before – Canada rocks! At one point two gold medals were earned within five minutes; Canada used to wait between five Olympics to win a gold medal (well, at least, three) and none had been won when Canada hosted the 1976 Summer Games (Montreal) or the 1988 Winter Games (Calgary).

It is estimated that over 22 million Canadians (out of 34 million) watched portions of the gold medal men’s hockey game – ending dramatically with an overtime “golden” goal; it was the most watched Canadian television event ever. There’s not a Canadian now who does not know the words to O Canada! (and a government proposal this past week to change one sentence to be more “politically correct” was shot down in a hurry…)

Last fall I wrote Skype: the “Unofficial” Personal Communications Software for the 2010 Winter Olympics? where I included some background on the telecommunications infrastructure build-out for the Olympics. But what was the experience and the outcome?

Personally I stayed at home and followed the action on television and the Internet. All events were originated with HD video and 5.1 channel surround sound; CTV ran a marathon Olympics program that commenced at 9 a.m. on opening day (Feb. 12, starting with the last day of the torch run) and continued 24/7 without a break, other than for the occasional five minute newscasts, through to midnight after the closing ceremony (Feb. 28). The broadcast consortium comprised CTV, TSN, both of which are Bell Globemedia properties, and Rogers Sportsnet (and their French language counterparts) in order to have sufficient resources to cover all the events.

Decisions, Decisions! It was not a case of tuning into one station and having the network choose which events you were allowed to watch; rather the viewer had to decide which sport they wanted to watch at any one time and choose one of three or four channels running different events. For instance, in the evenings one could select between figure skating, curling and bobsled (or hockey or freestyle skiing) – or go out and buy a couple of additional TV sets to watch them all concurrently. (Now if they could all just not  run commercials at the same time, channel surfing would have been more enjoyable.)

But that was only half the story. This broadcast coverage was complemented on the Internet where CTVOlympics.ca provided not only schedules and event participant information but also over 2300 hours of content, including real time streaming. Watch events live (with no commentary but lots of crowd noise and announcer pick-up) but, more interesting was that they accompanied the streaming with detailed event schedules and real time result tables so you could follow the evolution of an event towards determining the winners and where individual participants were placing, especially as the “individual performance” events proceeded.

For example, watching figure skating you knew when each skater would skate, the details of their individual programs (so you knew when a “triple lutz, double toe loop” was about to happen) and then a detailed result table (with more scoring information than I could handle in real time). Combining this while watching the telecast changed the entire event viewing experience and how I chose to watch the games. Same for the downhill skiing and those crazy snow cross events in the freestyle category, amongst all the other events.

My first exposure to Olympics ‘”saturation” coverage was watching the 1972 Munich Olympics while working in Germany. Sixteen hours a day of coverage by the German network was thought to be ground breaking at the time. But combining multi-network broadcast coverage with the Internet resulted in an entirely different and unique Olympics event viewing experience. And following my Twitter contacts during events made for a much more amusing time; it was hard to take too many of the more “cynical” tweets seriously. Unfortunately international arrangements were such that much of the CTVOlympics.ca activity could only be accessed from Canadian IP addresses. Political and copyright barriers are still an impediment to fully open international communications.

As for the effort that went into delivering the Olympics worldwide, the official telecommunications carrier Bell Canada reported:

“The Bell team rose to the extraordinary challenge of connecting the 2010 Winter Games and bringing these 17 glorious Canadian days to the billions of people watching around the world too,” said George Cope, President and CEO of Bell Canada. “The leadership role Bell played in delivering Canada’s Games drove communications innovation in this country to new heights. By exceeding the immensely high communications standards of an Olympic event, we’ve provided an incredible legacy of increased broadband connectivity for British Columbia.”

As the first telecommunications partner to deliver both wireless and wireline connectivity to an Olympic Games, Bell successfully executed all critical network and communications services at Vancouver 2010, including enhanced high-speed wireless data and fibre broadband networking, complete broadcast support, extensive Internet portal services and full network security.

The 2010 Winter Games network supported the communications needs of an estimated 250,000 visitors, almost 6,500 athletes and officials, 50,000 staff and volunteers, and more than 10,000 members of the Canadian and international media. Bell’s Olympic network delivered over 24,000 hours of broadcast coverage to more than three and a half billion viewers around the world according to the International Olympic Committee – the most in Olympic history, and a 50 per cent increase over the 2006 Winter Games in Torino and a 25 per cent increase over the 2008 Summer Games in Beijing.

When a customer first drove me to his Whistler chalet in 1974, it was a bit of a nervously challenging drive on a narrow two lane “Sea-to-Sky” highway that, for one stretch, went out from a canyon wall on wooden platforms. My host had a telephone connection – two wires under his unit connected to the neighbor’s phone line – literally in open air. Today, with a few exceptions it’s a four lane, fully paved highway and Whistler is connected to the world by the most advanced communications technology available.

One outcome for the Canadian wireless telecomm market: Bell, in co-operation with Telus, has built out a full HSPA+ network reaching over 90% of the Canadian population. Canada now has three wireless carriers, the original being Rogers, offering not only HSPA+ speeds but also the Apple iPhone and three candidates capable of offering the forthcoming iPad. But this is  just one example of how building an infrastructure for the Olympics has created a much more competitive telecommunications market within Canada. And each of them has the capacity to handle the smartphone data load growth reliably, not only for iPhone/iPad but also for BlackBerry and a selection of Nokia and Android products.

The one statistic we’re missing: how much of that traffic involved Skype calling?

Bottom Line: Not only did we have a great Winter Olympics party but there is a telecommunications legacy that will help to bring this country even closer going forward.

Congratulations to VANOC, the athletes and all those businesses – and the 25,000 volunteers- who help make it happen (and so successfully).

Now to deal with my case of Olympic Withdrawal Syndrome….

Full disclosure; the author was born and raised in Canada (Ontario and Saskatchewan) and has lived in Canada (and paid the taxes) for all but three years of his life. And he remains a Saskatchewan Roughriders fan.

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Announcement of the Skype – Verizon agreement certainly has generated buzz around both the Mobile World Congress and the blogosphere. Last Wednesday morning, one day after the announcement, several bloggers and mobile ecosystem players came together on a CalliFlower-hosted SquawkBox conference call to discuss both the triggers for the agreement and the implementations.

Co-hosted by Carl Ford and myself, participants on the call were Andy Abramson (who had been listening to the jungle drums on-site at MWC), Hudson Barton, James Body, William Volk, Alec Saunders, Thomas Howe and Moishe Maier.

Topics covered included:

• Verizon’s history of invoking VoIP; the “game” for Verizon (Carl Ford 00:30)
• Why Verizon finally had no choice but to do the deal. (Andy Abramson 02:15)
• What were the competitive drivers? (Andy Abramson 03:20)
• How does Verizon benefit from this agreement? (Andy Abramson 04:20)
• Who are the real winners (and losers) from this agreement? (Andy Abramson 05:00)
• How does this differ from what 3 is doing with Skype in nine countries (Andy Abramson 06:50)
• Lost in the announcement: final release of Skype for Symbian (Andy Abramson 07:50)
• Applications implications I: initial thoughts from Thomas Howe (08:15)
• Is Verizon missing a market segment through their smartphone offerings (James Body 09:05)
• Is this net neutral and no risk for Verizon? (Alec Saunders 11:00)
• How this agreement is a win for RIM (Andy Abramson 12:50)
• Dumb pipe or embedded intelligence: (Andy Abramson, Alec Saunders 13:50_ [Note that my last question to Russ Shaw was meant to be quoted as “When can I say ’Call Russ Shaw on Skype’?”, not “on mobile” as stated in this conversation; all four carrier friendly points referenced in this discussion can be found here.)
• Perhaps the most informative commentary: Applications implications II: a very interesting perspective on the mobile application store market from William Volk who has several of the top selling games on the iPhone. Backed up with comments by Mr. Mashup, Thomas Howe  (17:25) Terminology: ECPM – effective CPM. Bill makes some very poignant points about the uniqueness of Apple’s app store and why Verizon’s Get-It-Now app store that has no appeal to developers.

Download

Posts referenced during the call or subsequently relevant:

• Carl Ford: Jim Courtney & Carl Ford Converse about Skype & VZW
• Om Malik, GigaOm: Skype & Verizon’s Fear of the iPhone
• Andy Abramson, VoIP Watch: Skype, Verizon (and Andy) In the News
• Om Malik, GigaOm: Skype CEO: Skype Over 3G on iPhone Soon
• Om Malik, GigaOm: Skype-Verizon Deal: More Details
• Andy Abramson, VoIP Watch: Todd Carothers Point of View on Skype-Defining The Battleground

Thanks to Angelo Mandato at RawVoice for his assistance with getting my first “podcast” up and running using the BluBrry PowerPress WordPress plug-in. And, of course, our thanks to all who participated in the call.

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Yesterday’s announcement that Skype will become available as a supported service on Verizon Wireless has to have sent a tsunami through the wireless operator world. To review the offering:

• A Skype client will be included on nine models of BlackBerry and Android smartphones in late March; current customers with these devices will be able to download the application
• Free Skype-to-Skype voice calling, both inbound and outbound, worldwide
• send and receive instant messaging (chat and presence) worldwide at no charge
• International SkypeOut calling; domestic calls come out of the customer’s voice plan
• Requires a Verizon voice and data plan
• Skype-to-Skype and SkypeOut calls as well as Skype IM activity will not impact a customer’s voice plan minutes and data plan usage.

The Background. Yesterday I wrote about the market environment and technology infrastructure that led to the ability to make this announcement

• It’s Verizon’s answer to AT&T’s forthcoming Skype for iPhone over 3G; however, given that planning and development activity have been ongoing for the past year, it’s a well thought out response with a focus on the user experience.
• The client will be a customized version of Skype Lite where the voice conversation is carried over the Verizon voice channel while presence indication, chat messages, mood messages and voice call signaling will be carried over the Verizon data channel.
• Launching a Skype voice call or chat session will be the same process as launching a traditional call.
• It’s integrated with the Address Book of the device such that all contacts can become Skype or SkypeOut contacts.
• Both the BlackBerry and Android smartphones can handle multi-tasking such that Skype “data” activity can continue to operate in the background while using other applications on the device.
• Client is optimized to take advantage of any battery life conservation features, certainly one of BlackBerry’s well known strengths.
• In response to one question at the press conference, Verizon stated they will not allow network quality to erode as a result of the additional load created by this service.
• Currently no video calling, file transfer, SMS messaging or WiFi access

Show me the money! Based on information provided by iSkoot at eComm 2008 and 3′s gradual expansion of Skype availability, it would appear at first glance that the business model involves:

• Verizon receiving a percentage of SkypeOut revenues (Skype has an affiliate program that provides referrers with 25% of SkypeOut revenues – an indicator of Skype’s margin for this service; 3 has offered SkypeOut since summer 2008)
• Skype receiving software licensing revenue associated with smartphone revenues (sales or lease) and Verizon voice/data plan revenues
• No termination charges for Skype-to-Skype calls (explains why Verizon can offer this as a free service to their data plan customers)

The implications:

• Has the potential to add 90 million Verizon customers to Skype’s user base
• Verizon customers can call over 500 million Skype accounts worldwide at no cost (probably about 100 million active accounts)
• SkypeOut becomes the de facto replacement for all Verizon’s other consumer international calling activity, especially for calls to those 44 countries on Skype’s Unlimited World Calling plans.
• Provides a subtle but significant carrier endorsement of BlackBerry and Android devices.
• Multi-tasking allows an “always on” user experience; the challenge will be when and how notifications are made of a Skype activity (presence status change, new chat message, etc.) when using other applications
• the underlying architecture takes advantage of the existing robust and scalable voice architecture while exchanging data over a wireless data service that is widely perceived as the best in the U.S due to the combination of its reliability and coverage.
• requires the installation of “Skype gateway” servers within Verizon’s infrastructure to terminate Skype calls under Verizon’s management and control, offset by the fact that there are no termination charges for Skype-to-Skype calls.

The downside: The architecture does not allow for WiFi access to Skype. As a result:

• one cannot readily make calls from WiFi access points outside the U.S. without paying roaming charges which can tend to be expensive. (Skype for iPhone on AT&T or T-Mobile’s @ Home service provide this capability.)
• calls cannot be made from locations without carrier network coverage (to a large extent Verizon’s U.S. geographical coverage addresses this issue but one can also be deep in a building with WiFi but no carrier).

The Questions:

• Will Skype Instant Messaging become a replacement for SMS messaging and cannibalize SMS revenues? Skype IM messages simply go out over the data channel as one application for the data plan.
• What happens when a Verizon customer is roaming in other countries?  Can visitors to Canada or Europe continue to use Skype at no additional cost while in Canada? or will a roaming charge apply?
• Verizon is currently offering these devices with a “Buy One Now, Get One Free” feature and a two year contract at prices ranging from $29.99 (Storm 1, 8530 Curve)to $179.99 (Storm 2). Will the lack of a low cost phone, such as 3’s Skypephone2, with Pay-As-You-Go impact adoption?
• What is the level of carrier exclusivity in the deal? Will we be seeing similar offers from T-Mobile US or AT&T any time soon? What portions of the embedded Skype software in the devices are  exclusive to Verizon?
• Who will be the first Canadian carrier to adopt the Verizon-Skype model? This will be interesting to follow given that:
  • there are no network quality issues with any of the three
  • the Bell Canada/Telus networks can not only support EVDO (same BlackBerries as offered by Verizon) but also GSM/LTE supported devices with their new HSPA+ network launched in time for the Vancouver 2010 Winter Olympics.
  • all three carriers now offer the iPhone; in this case Rogers was the original carrier with it.
• What level of support will Verizon provide for BlackBerry’s app store and Android’s market? Will Verizon facilitate and promote them or even provide an aggregated app store?

Final question: Skype stealthed its way onto AT&T 3G through the combination of supporting calling over WiFi access points (worldwide) and FCC lobbying; Skype is certainly helping to drive iPhone sales at AT&T. Can the combination of carrier-supported “free international calling”, full multi-tasking, a more robust and reliable network and the currently top selling smartphone brand in the U.S. sustain and build Verizon’s user base?

Bottom line: carriers are recognizing that Skype needs to incorporated into their infrastructure as a key element providing both uninhibited access and the network resources to ensure a high quality, positive user conversation experience. Most importantly they are discovering that Skype can become a marketing tool that drives market differentiation and user adoption.

For further commentary Carl Ford and I recorded a podcast conversation yesterday: Jim Courtney & Carl Ford Converse about Skype & VZW.

Update: Andy Abramson has been on-site at MWC and picked up some feedback: Skype, Verizon (and Andy) In the News

Photo: John Stratton, executive vice president and chief marketing officer for Verizon Wireless, and Josh Silverman, Skype’s CEO, announcing their strategic relationship to bring Skype to Verizon Wireless smartphones during a press conference at the 2010 Mobile World Congress in Barcelona, Spain earlier today. (Via Business Wire, accreditat[on not provided)

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Full disclosure: This post was prepared prior to today’s press conference using information that was publicly available prior to the conference. In the second post I’ll discuss the service as announced at CES today.

When you can advertise “Free phone calling internationally”, they will come! In the CES interview with Skype CEO Josh Silverman, Josh makes the point about how Skype draws in customers by offering a free service that is easily adopted by consumers and then offering “premium” services, such as SkypeOut calling, to generate revenues. This model has led to:

• over 580MM registered Skype accounts (probably 100MM are currently active)
• over 12% of international long distance calling minutes are Skype-to-Skype calls
• and revenues approaching $1B per year.

As mentioned in the recent CES interview with Russ Shaw, Skype’s VP & GM for Mobile and EMEA, Skype’s partnership with Hutcheson Whampoa’s 3 service in nine countries has delivered interesting carrier-friendly results from 3’s customers who take advantage of its free Skype-to-Skype calling:

• 20% higher margin
• 17% additional traditional voice minutes
• lower churn rate
• high ARPU (average revenue per user)
• over 1 billion Skype-to-Skype minutes delivered in the UK since Nov. 2007

Results that should get all wireless carriers’ attention! And Russ did emphasize these results to reinforce where some of Skype for Mobile’s current activities and resources are being directed.

Setting the stage in the U.S. market for today’s Skype-Verizon announcement:

• Verizon has a reputation as offering the best high speed (3G and faster) wireless data services within the U.S. and nobody’s complaining about their voice quality.
• AT&T’s major strength appears to be its iPhone arrangements
• AT&T’s network performance issues, especially with their data service, are well documented (even their voice channel failed me on my last two trips to the U.S.)
• The major failing of the iPhone that impacts Skype for iPhone is its lack of multi-tasking capability
• Skype has announced they will be making available Skype for iPhone running over 3G – a service that will only be available on AT&T for the duration of the current Apple-AT&T agreement
• Verizon needs an offering and drawing card that will compete with AT&T’s forthcoming ability to offer a Skype-based service on the iPhone.

So it should come as no surprise that Verizon is announcing an agreement to offer Skype on several devices including the BlackBerry line and the Android phones they support.

The Service Architecture

Based on information that has come out over the weekend and content archived on this weblog, this service is modeled on an architecture similar to the iSkoot architecture used for 3’s service whereby data (Skype chat messages, presence and call signaling information) go over Verizon’s data channel but the actual voice calls are connected to the phone via Verizon’s (robust and readily scalable) voice channel. As a result:

• Call quality is limited by the (3.7KHz) audio bandwidth of the voice channel (in particular, no SILK superwideband quality calls)
• Verizon has no termination charges for calls to Skype contacts (or what amounts to being a Skype-to-Skype call – a key factor in making this service cost effective from the Verizon perspective)
• There is no loading of Verizon’s wireless data network (and the associated backhaul demands) with the heavy demand that would be placed on it via a true VoIP client.
• The resulting “Skype for Verizon” Skype Lite client on the BlackBerry and Android devices  has no support of calls via WiFi access points.

So the Verizon-Skype announcement certainly builds on previous Skype technology and business model experience; it will take advantage of proven and demonstrably reliable carrier voice and data services. I’ll have more in the follow-up post covering the actual announcement.

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At CES 2010 last month I had the opportunity to record interviews with Skype CEO Josh Silverman as well as Russ Shaw, Vice President and General Manager of Skype Mobile and EMEA, and Matt Jordan, Enterprise Business Development Manager.

In this second interview Russ Shaw covers a wide range of questions about Skype on different mobile phones, the business model that complements wireless carriers’ goals and other challenges as Skype executes on its mobile component of “Skype Everywhere”.

In the first segment Russ discusses revenues from Skype for Mobile activities, execution on the Nokia agreement and the Sony Xperia, the challenges of working in the mobile ecosystem and carrier partnerships. Russ emphasizes that Skype for Mobile’s main goal is to get usage on as many mobile devices as possible as part of the Skype Everywhere goal.

In the second segment Russ discusses Skype for BlackBerry (announced last spring but still running a beta trial), their learnings from the beta and how to ensure a positive user experience. He then goes on to explain how Skype can provide a carrier partnership business model that, based on Skype’s experience with 3, can be a complement that builds a wireless carrier’s overall business. He then provides an analogy of how O2 used a freemium model to build their business around free offerings of music; free Skype-to-Skype calling is the basis of a freemium model for carriers. We go on to discuss Skype for Android in the next segment. This is followed by asking Russ to sum up what’s ahead for Skype on mobile smartphones.

But then I ask one closing question that would really support “Skype Everywhere” in a very common user situation; I can only supplement the discussion by pointing out that, when I get into my car, a Bluetooth-enabled BlackBerry is on my belt (with my Otter Box Defender case). And, during the discussion, Canadians will learn about one more Skype service coming soon to Canada.

Bottom line: Is 2010 the year we can access our Skype contacts worldwide from the majority of smartphones? How many carriers will really catch onto the “3” business model and adopt Skype as a formal offering? And will I be able to get into my car and simply say: “Call Russ Shaw on Skype” to make a hands-free Skype call from my mobile smartphone?

Update: As mentioned above Russ talks about the success with 3 using Skype and the Skypephone. Just prior to posting I learned that 3 has now logged 1 billion minutes of Skype-to-Skype calling. In their summary notes 3 states also that “Over 2m people use internet services like Skype on 3” out of their 4 million active UK customers. (BTW, this is not the only story I have heard about how Skype is helping to maintain communications with Haiti; I have seen a few Skype video calls as television interviews as well; probably makes for another story.)

Of interest: Russ has authored an article at Connect World, Mobile operators should co-operate with application and content providers to take advantage of the mobile Internet boom, where he discusses the  issue of mobile operators working with VoIP providers to build their overall business where he supports the success with 3:

There is already some evidence that the entire discussion is based on a misconception, and that, in reality, using the Internet to make calls does not cannibalize the revenues of operators. Some operators, like Three in the UK, have already changed their business model. They are challenging their competitors by partnering with a software company, offering a popular application that allows mobile VoIP calls at no extra cost, providing their customers with a very tangible extra value and comprehensive user experience by integrating the application into a range of mobile handsets. As a result, the group of customers using these services generate 20 per cent higher margins than non-users, voice revenue being a key contribution to this. A survey undertaken in August 2009 revealed that users of this application used on average 17 percent more traditional voice minutes than non-users. Next to this, a comparatively lower churn rate and higher ARPU (average revenue per user) was one of the positive outcomes as well. [Author's bolds]

Other Skype executive interviews from CES 2010:

• Skype for Business: An Interview with Skype’s Matt Jordan
• A Conversation with Skype CEO Josh Silverman

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Over the past several months I have written three posts about WiFi’s ever-increasing role as a complement to the wireless carriers:

• WiFi: The Real Threat to the Mobile Carriers
• Is WiFi Becoming the Unregulated Stealth Carrier of the Future?
• Traveling in a Bipolar Mobile Mode

Basically, in my recent travels I have found that WiFi access is becoming more readily available at home, in the office and, as I travel, in hotels, airports and restaurants. Especially when in countries where roaming charges can be excessive, I seek out WiFi access points when on my BlackBerry and iPhone to minimize roaming expense for data.

Now that Apple is allowing VoIP over 3G, this strategy will become even more critical when using the Skype and Truphone applications for the  iPhone where the conversation uses VoIP technology over the data channel. While my home network data plan has sufficient monthly capacity for making these calls from within Canada, I’m not sure I want to be paying $1/MB when roaming in, say, the U.S. for a Skype call.

Brough Turner has built up an immense wealth of knowledge about Internet infrastructure and wireless carriers, not only from the technology perspective but also the business implications, including costs. He has recently published a post, WiFi Offload, not Femtocells, where, while postulating that Femtocell technology is too complex and costly become mainstream, he supports his argument by pointing out the business reasons for relying on WiFi as a primary “carrier” for wireless:

• “most mobile data is destined for the open Internet, not for someplace on the mobile operator’s network” Apparently 96% to 99%. Yet, relative to a direct broadband Internet connection, it’s much more costly per user (and more complex) for a wireless carrier to provide the tower and backhaul infrastructure required to connect a mobile phone to the Internet.
• “the primary sources of mobile data demand are laptops, notebooks and smart phones”. It’s become reality that most mobile devices these days support WiFi in addition to 3G/LTE/4G. And the iPad is a “data only” device. Demand for wireless connections will continue to grow rapidly; carriers need to look at the cost of new towers vs encouraging installation of WiFi access points (for which they have zero cost if the subscriber installs the access point).
• “WiFi access points cost less than femtocells” When end users can set up a WiFi access point for around $100 whereas the carriers’ towers can run $1MM to $2MM per tower and require a backhaul Internet link, it is actually to the carrier’s capital cost advantage to support the build out of WiFi access points, whether private (home, office) or public (hotels, restaurants, airports, etc.).
• “WiFi access points are showing up everywhere”. Yep, see the posts referenced above.

Three instances where WiFi has “bailed me out” recently:

• On both my January trips to CES and IT Expo, I had set up voice roaming with Rogers. Just one complication – over 80% of the calls I received, via roaming partner AT&T, had such poor call quality I had to ask the party to hang up and call them back. But when I called them back it was using Skype for iPhone over WiFi connections to have a more than acceptable call quality. AT&T simply failed, big time.
• At one recent hotel the hotel wanted to charge $14.95 per day per PC or smartphone for a WiFi connection. However, the hotel chain involved also had an arrangement with Boingo. Once I got the Boingo availability reminder I simply upgraded my mobile Boingo plan to a combined plan at $17.95 per month, connected my laptop, BlackBerry and iPhone and bypassed the hotel charges. As a bonus, I was also able to use the plan while waiting for my flights at two airports, amongst other Boingo-supported locations.
• During my trips to Spain last fall I ended up in situations where no public carrier access was available but there was WiFi access – once in an office with no 3G signal and once in a hotel in an ancient building with WiFi but no landline phone. Once again in these situations WiFi was the path to get data and Skype for iPhone or Truphone was used for voice calls.

The Bottom Line: Brough says it best in answering his own question “What should an operator do?”:

Mobile operators need to focus on providing bundles of connectivity, not on whether its 3G/4G or Wi-Fi. They should be encouraging Wi-Fi offload by bundling “free” public Wi-Fi access with their mobile data plans.

In the long term, it’s likely most mobile data bytes will go over Wi-Fi.  The 3G/4G network is still necessary to provide a backup path when no Wi-Fi is available. Mobile operators who recognize this can still come out on top, if they focus on facilitating connectivity for their customers regardless of the technology involved.

Note to Rogers: while Andy makes great use of UMA from T-Mobile’s @Home service during his overseas travels, Canadians would appreciate the same level of support for Rogers’ UMA-based services, which are currently limited to access from WiFi hotspots within Canada.

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Launch of the iPad last week and the Apple’s recent change in their developer terms of service involving the removal of restrictions for using VoIP technology over a carrier’s 3G network have had the Skype mobile team busy reviewing the opportunities.

In a Share Skype post, An update on Skype for iPhone and calling over 3G, Peter Parkes interviews Skype for Mobile team member David Ponsford making a few points:

• Skype’s high quality audio SILK technology will be embedded in the next version of Skype for iPhone (for both the latest model iPhone 3G S and iPod Touch)
• “Real soon now” (quoting David in the video) we’ll be able to make Skype for iPhone voice calls over a carrier’s 3G network using Skype for iPhone.
• The next version will also incorporate the call quality indicator, a very useful tool found currently in the Skype for Windows 4.2 beta release.
• Skype for iPad is under consideration; given Apple’s claim that all current third party iPhone apps should run on the iPad, this should not involve too much change other than adapting to the larger screen size.

Here’s the video:

Skype for iPhone has bailed me out for voice calling on my recent trips to the U.S. for CES 2010 and IT Expo. During both events several calls from outside parties to my BlackBerry resulted in very poor call quality when roaming over the AT&T network. As a result I had to ask the calling party to hang up and called them back using Skype for iPhone (fortunately I was in a WiFi access point’s range). And the call quality was more than acceptable in each case. Just reinforces my point last spring about WiFi becoming a stealth carrier.

What will be real interesting is how much data traffic is generated by calls over 3G:

• Will it be the application to cause me to take full advantage of the 6GB data plan (for Canadian access) on my iPhone where my usage currently runs under 100MB per month?
• What will be the impact on roaming data plans and the resultant charges?
• While there is no doubt that Rogers, Bell and Telus will be able to handle the additional data traffic load in Canada, will Skype for iPhone over 3G be the application that brings down AT&T’s network in the U.S? (Especially if they can’t deliver good quality voice calls on their voice channel – see above.)

One final question: Does “real soon now” mean prior to or during the upcoming Vancouver/Whistler 2010 Winter Olympics that start in nine days (Feb. 12)?

Thanks to Skype’s Chief Blogging Officer Peter Parkes and David Ponsford for the update.

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The past six months, with three trips to Europe, have given me the opportunity not only to experience roaming on European 3G wireless services but also the strategies and alternatives that allow me to minimize roaming charges while traveling with both a BlackBerry and iPhone. A key to the achieving this goal lies in the support available for WiFi access points in hotels, restaurants, airports and at conferences that provide robust, scalable WiFi support. But the question outstanding is why would I use both devices? The answer lies in the applications and content.

While one can theorize academically about various low cost scenarios and one attempts to use WiFi wherever feasible, in actual travel, you need access to some form of wireless service wherever you may be. For instance, if lost in a city where you don’t speak the language, Google Maps can often help get you sorted out quickly. Or find the nearest restaurant district (was a big help in Paris, for instance). But you need wireless carrier access to use these services.

So what measures can I recommend?

First step: buy an International roaming package from the home wireless carrier. Over the summer Rogers introduced European roaming packages; here’s the comparison:

The good news about these packages is that the per MB and per minute charges remain the same for any overage over the minimum expenditures. The bad news is that roaming charges are still “huge” compared to the $0.03/MB or approximately $0.10 per minute paid when on my home Rogers network. U.S.-based users should check with their “home” carriers to see if similar plans are available. Rule of thumb and current reality, however: roaming charges remain the last ultra-high margin service for wireless carriers.

So, while relatively expensive, these packages are helpful when away from a WiFi access point; however, as mentioned above, the real saving comes when you set up for using WiFi wherever possible. (In addition I encountered a couple of situations where 3G coverage was weak or non-existent; in these cases access to WiFi became essential.)

Second step: ensure you have installed both Skype and Truphone on your iPhone; you can then make voice calls from WiFi access points at prevailing Skype or Truphone rates. For instance, Skype-to-Skype calls are free while SkypeOut calls are based on using either a Skype Calling Plan subscription or Skype credits.

Third step: buy, at a minimum, a Boingo Global Mobile plan; while WiFi in hotels and restaurants is usually free or has a daily charge, Boingo Global Mobile provides access in over 70 countries at airports and often at hotels where, otherwise, you would pay a daily fee that is usually more than Boingo Global Mobile’s monthly charge.

Fourth step: put the iPhone in Airplane mode but with WiFi access turned on. In this way, no voice calls are received via a wireless carrier; also the iPhone specifically requires proactive user permission to roam on data – leave this turned off. But the iPhone applications, including Skype and Truphone, can all be used when attached to a WiFi access point. (Note: I do not give out my iPhone voice number but do use it for various tests; Google Voice is not yet available in Canada to provide multi-smartphone calling.)

So here is where I use each device:

BlackBerry Bold 9000: email (both BlackBerry email and GMail), BlackBerry Messenger 5.0, Google Maps, SocialScope – still the most comprehensive Twitter application on a smartphone; SlingPlayer Mobile for BlackBerry. Keep in mind that BlackBerry is overall more efficient for handling data due to the data compression provided by the BlackBerry Network Operations Centre architecture for managing data traffic. This ongoing wireless data compression feature is a major reason why I prefer BlackBerry for services such as Google Maps or downloading/uploading pictures in SocialScope as opposed to the iPhone when on a 3G wireless carrier network.

iPhone: main application is Skype, followed by Truphone. Very handy for making calls back to North America from hotel rooms or lobbies, restaurants as well as offices and conferences supported with WiFi access. (But you must have the relevant application open to receive calls and receive/send chat messages.) Other preferred applications include the Safari web browser (faster and more versatile than BlackBerry’s) and Facebook (which has a richer user experience than on BlackBerry) and a few applications that are unique to iPhone. Also comes in handy if the BlackBerry battery has died and I need immediate access to, say, GMail or a browser.

Bottom line: the feature that continues to dominate my preference for BlackBerry over iPhone is the keyboard; it’s a real time two-way communications device whereas the iPhone, with its superior browser capability, continues to be an information delivery device but works best for one way communication. My use of its touch screen keyboard tends to be limited to entering user names and passwords.

A few comments:

• There’s one major application missing on the BlackBerry – with its full multi-tasking capability the BlackBerry is ideally suited for Skype as a VoIP client. One can have real time chat sessions continue in background while using other applications; we experienced this with iSkoot but at this point one would expect to have seen the Skype for BlackBerry that was announced by Skype around the time of last spring’s launch of Skype for iPhone. And now that Skype for Symbian beta supports both 3G and WiFi and the FCC is supporting for “net neutrality”, the “carrier-support” argument for avoiding VoIP clients over WiFi on the BlackBerry no longer holds water. In fact, Rogers has made it clear that they have no issue with running Skype over 3G networks. Let’s hope that Skype and RIM can get the act together such that we can see a product introduction early in 2010.
• On my most recent trip I only bought the 15 minute voice package; with BlackBerry Messenger and SocialScope (for Twitter) available I found little need to make voice calls while in 3G only mode. Skype on my PC at hotel rooms and conferences as well as Skype and Truphone over iPhone addressed 95% of my voice calling needs. (Now, if I could just learn how to order a taxi in Spanish!)
• I realize most smartphone users will only have one phone. I present this post simply to provide an overview of my experience using both these devices while optimizing my roaming experience when traveling out of the home country. I need to have both devices due to not only their popularity but also the different content exchanged and user experiences for each smartphone.

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Two announcements yesterday, when meshed together, create the setting for Skype to become, de facto, the ‘”unofficial” personal communications software provider for the 2010 Winter Olympics at Vancouver and Whistler, B.C. next February:

Skype President Josh Silverman today posted: “Good Move AT&T”:

Since launching our iPhone application six months ago, people have downloaded and installed Skype on 10% of all iPhone and iPod touch devices sold – making it clear that people are extremely interested in taking Skype conversations with them on the go.

All of us at Skype applaud today’s announcement by AT&T (in an FCC filing to be published shortly – update, it’s here in PDF format) that it’ll open up its 3G network to Internet calling applications such as Skype. It’s the right step for AT&T, Apple, millions of mobile Skype users and the Internet itself.

Bell Canada’s Mobility service and Telus yesterday announced both the launch of their new joint-venture HSPA+ network across Canada next month and their agreement to be selling Apple’s iPhone amongst other 3G/GSM phones such as Nokia’s line. In fact, as shown on the right, the existence of the new network, with the identifier “302880”, can already be detected via the iPhone’s Carrier settings .

The implications of this announcement:

• Bell Mobility and Telus expect their HSPA+ network to completely replace their current CDMA/EV-DO network within five years.
• Bell Mobility and Telus will be providing direct competition to Rogers who, to date, has been the sole GSM carrier in Canada and will be able to offer a full range of 3G GSM phones – not only the iPhone but also Nokia’s GSM-exclusive line of phones.
• As a benefit of their current monopoly Rogers has also been the only carrier offering Apple’s iPhone since its Canadian launch in July, 2008. Canada now becomes one of the few countries with multiple carriers offering the iPhone.
• As another benefit of their GSM monopoly Rogers has been the sole network available for roaming by visitors from outside the U.S. and Canada as well as AT&T and T-Mobile customers from the U.S. Since athletes and visitors coming to the Vancouver Olympics from outside North America will have GSM phones, Bell Mobility and Telus will now be able to draw away from Rogers a significant portion of the roaming business that otherwise would have accrued by default to Rogers.
• Bell Canada is the “official” communications carrier for the 2010 Winter Olympics and Paralympics. Bell Mobility has built out their new HSPA+ network from the Telus network connection in Vancouver along the Sea-to-Sky highway to Whistler, site of the alpine and cross-country skiing events as well as bobsleigh, luge and skeleton “sliding” races.
• Additional communications capacity between Vancouver and Whistler has been built by Bell Canada for Internet communications, the 35 to 40 Mbps voice and data backhaul required for each of the wireless towers and the HD 5.1 surround sound television coverage that will include all events. No doubt a lot of fibre has been installed as BC Highways rebuilt the Sea to Sky Highway over the past few years to meet the Olympics’ inherent demands both additional vehicle capacity and enhanced safety. Being the “official” carrier this will benefit Bell Canada’s revenue stream also.

This raises the question of whether an HSPA-only service can run on the iPhone or BlackBerry Bold both of which currently only support 3G. The answer is Yes; HSPA will support 3G devices.

However, an HSPA+ network can only fall back to a 3G network capability when full HSPA capability is not supported by a device. But the iPhone and BlackBerry Bold also support 2G/EDGE networks.

As a result should a Bell Mobility or Telus customer leave an HSPA+ coverage area, there is no EDGE available for fall back when outside these areas. For example,when we drive the freeway from Toronto to Ottawa, we see EDGE for most of the trip except near Toronto, Kingston and Ottawa where Rogers 3G coverage exists. Either Bell and Telus will require roaming agreements with Rogers to provide non-urban service or they will not be able to offer as complete coverage to their customers.

Of course, those landlines will be able to support Skype on laptop PC’s using Ethernet or WiFi connections. But combining the two announcements along with Skype for iPhone’s recent availability in Canada, can Skype become the overall de facto “unofficial” personal communications software provider for the 2010 Olympics? Questions to be answered:

• Will Skype release a version of Skype for iPhone that supports both WiFi and 3G as the underlying wireless protocols prior to the Olympics?
• Will Skype finally release Skype for BlackBerry? (to address Phil’s desire for Skype on a multi-tasking smartphone)
• Will we see execution on Skype’s agreement with Nokia?
• Will the various communications and “Internet cafe” rooms for athletes and press be equipped with enough power sources to keep the various smartphones charged conveniently?
• Will Bell Canada have the same policy re Net Neutrality as Rogers who has publicly stated their primary business in providing Internet access and not managing applications or specific customer uses?
• Has Bell Canada signed the appropriate international roaming agreements with carriers around the world?

Certainly it’s within the realm of current technology to support Skype over wireless networks, whether WiFi or wireless carrier. Bell Canada touts their 2010 Olympics commitment as being “The first all-IP Olympics”. The question that remain:

• To what extent will the Skype ecosystem actually be able to execute on, and take full advantage of, this underlying IP-based communications infrastructure?
• Will Skype’s popularity, ease-of-use and combined voice/chat/video feature set make it the de facto “unofficial” voice, chat and video personal communications software provider for the 2010 Winter Olympics and Paralympics?

Call it Skype Everywhere by Stealth…. but can Skype execute on the challenge?

Disclaimer: Bell Canada, including its Bell Mobility wireless business unit, is the official communications services provider for the 2010 Winter Olympics. Skype is a software application, with over 500 million registered accounts worldwide, that uses these communications services for the purpose of voice, instant messaging and video conversations; however, Skype is in no way affiliated with, or endorsed, by the 2010 Winter Olympics Committee.

Full disclosure: For over thirty-five years the author has personally observed the growth of Whistler from a small and remote “boutique” ski area with one tragically slow 4-person per cabin gondola lift and a few double chairlifts into North America’s number one rated ski resort covering two mountains and capped off last year by the opening of a 4.4km peak-to-peak gondola that takes riders as high 436m above the valley floor. Concurrently the Sea-to-Sky highway has grown from a twisty, up-and-down adventure (and risky) roadway with some sections on wooden platforms on stilts anchored to rock walls over canyons to a safe multi-lane, yet still scenic, roadway. (I still consider it one of Canada’s most scenic highways.)

• A fully redundant fibre-optic network between Vancouver and Whistler to support essential broadcast traffic. Bell has successfully laid fibre to the front door of every major Olympics and Paralympics venue, and will ultimately connect all of the 130 competition and non-competition venues to our dedicated Olympics network
• Bell’s fibre-optic network will provide all voice, data and broadcast services for fans, media, athletes and officials from around the world, and will be the backbone that enables all Olympics and Paralympics connectivity. This includes 400,000 private radio calls, 10,416 hours of dedicated TV broadcast coverage to more than three billion viewers, timing and scoring results delivered in the blink of an eye, and more
• The highest level of reliability and redundancy and the most up-to-date technology for the full range of Olympics telecommunications services, including voice, data, broadcast video and audio, wireless PCS and private radio
• Provision of all hardware, cabling, logistics and support staff
• An unprecedented level of support to the Rights Holding Broadcasters, in particular the Broadcasting Service for the Olympic Games
• Internet portal services enabling an interactive, multilingual window to Canada and the world
• The first all-IP Olympic Games
• All built to minimize environmental impact by co-locating equipment to minimize footprint, coordinating construction schedules to reduce waste and using IP-based technology to dramatically reduce cabling and infrastructure needs

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This week about 50,000 people have gathered in the northern Nevada desert for the annual Burning Man ritual. You really have to visit their website to get a feel for what it is about and the principles that guide this annual one week experience.

Started in the mid-1980s, Burning Man is designed to generate a society that connects individuals to their creative powers, participation in community, civic life, and the world of nature. Gathering on an ancient lake bed, about 140 miles north of Reno, participants decide how and what they’ll contribute to the community.

But one guarantee – neither AT&T nor Verizon, neither Sprint nor T-Mobile had a cell tower within the horizon of the Black Rock City playa. As a result, working with Voxbone’s iNum service, up to 10,000 participants can receive SMS messages or, within capacity limitations, receive voice calls at country code +883, iNum’s worldwide country code accessible for free from many partner service providers and via local access numbers in 45 countries worldwide.

So, with no coverage by the commercial wireless carriers, how does this connect? Voxbone has worked with the Open BTS Project:

…. an effort to construct an open-source Unix application that uses the Universal Software Radio Peripheral (USRP) to present a GSM air interface (“Um”) to standard GSM handset and uses the Asterisk software PBX to connect calls. The combination of the ubiquitous GSM air interface with VoIP backhaul could form the basis of a new type of cellular network that could be deployed and operated at substantially lower cost than existing technologies in greenfields in the developing world.

In plain language, we are working on a new kind of cellular network that can be installed and operated at about 1/10 the cost of current technologies, but that will still be compatible with most of the handsets that are already in the market.

The OpenBTS team has constructed a cell tower at Black Rock City, that, in the “leave no trace” principle of Burning Man, will be taken down at the end of the event on Labor Day (next Monday). Effectively working together, Voxbone and the OpenBTS project have demonstrated how to set up and install at a low cost a complete GSM-based wireless service in remote and otherwise unserviced regions of the world. Full details are here but it is interesting to note:

• Who is doing this? This is an activity of the OpenBTS project. The entity legally responsible for the test is Kestrel Signal Processing, Inc.. The actual on-site engineers are David Burgess and Harvind Samra.
• Is this legal? Yes. We have an experimental license, WD9XSP, and a consent letter from Verizon authorizing us to operate in their KNKN224 block A cellular spectrum. We are also coordinating operations with Commnet Wireless to prevent interference.
• How much does the service cost me? Nothing.
• What do you do for emergency calls? Nothing. We are an experimental service and do not support emergency calls.

and

• My phone shows service but I can’t make a call. Why not? Only the first few hundred subscribers will get full speech service. Everyone else will just get SMS. There are two good reasons for this:
  1. We don’t have enough equipment for everyone to get normal speech service.
  2. Widespread speech service would change the nature of BRC in ways a lot of people would not like.

• Will my carrier charge me for every text message I send or receive on the Papa Legba network? No, the Papa Legba network is a separate isolated network from your normal carrier’s network, and no charges will apply as no SMS is being sent or received through your normal carrier.

Note that “Voxbone is providing funding and most of our VoIP connectivity”.

OpenBTS Chronicles: We Loaded the Truck Today and co-founder David Burgess reports on getting it going:

So we turned on the PA for the first time today and immediately got swamped with registration requests, which is actually normal and a good sign given our operating conditions. We also got a report of someone receiving a text message at Center Camp. That’s only about 1 km, but the impressive part is that the guy with the phone was in a
sealed shipping container (the BRC NOC) at the time. We were delayed seriously by high winds that made tower work dangerous, so a 4-hr tower job took just over 11. But it’s up thanks to the heroic efforts of the rigger. It was a little scary to watch.

From the Voxbone press release:

Voxbone worked with the OpenBTS Project to automatically assign iNums to cell phone users at Burning Man, making them instantaneously reachable from networks such as Skype and Google Talk.

“We are showcasing how iNum can be used to connect remote or unconnected areas of the globe with the rest of the connected world, using cell phone infrastructures such as OpenBTS,” said Voxbone CEO Rod Ullens.

“In addition, we are demonstrating to people attending Burning Man that they can receive voice calls and text messages from services like Google Talk on their cell phones at the festival. Burning Man is a great event at which to highlight these types of services because the attendees are open to new ideas and new experiences, and we are enthused to be a part of that.”

The iNum service is provided free to users at Burning Man. At the same time, it will enable users to spread the word about how valuable iNum is when it comes to connecting the unconnected.

“In partnerships like this one for Burning Man, there is an opportunity to demonstrate a technology for quick and cost-effective connectivity to regions that urgently need it,” said OpenBTS Project co-founder David Burgess. “In this case, the connectivity is a convenience to Burning Man participants, but iNum also can play a critical role when war, natural disasters and other emergent situations require quick communication.”

Alec Saunders, in OpenSource Meets GSM at the Burning Man, asks “Why do this?”

Naturally it’s a nice showcase for VoxBone’s iNum technology.  More to the point, OpenBTS believes that by making inexpensive mobile base stations available built around open source solutions, telephone service can be made affordable even in the remotest parts of the world.

Would be interesting to hear how it turns out in terms of number of cell phones connected and conversations handled. but the project is certainly a contributor to the overall spirit of innovation and creativity encouraged by the Burning Man ritual.

Question: while Skype for Asterisk was just released this week, can we expect the OpenBTS Project to add a Skype for Asterisk channel to their PBX next year?

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