Earlier this week Skype released Skype 5.8 for Windows as a gold release. It brings to all users features that have been creeping into recent beta versions including:

• Full HD video calling (720p and 1080p @ 30 fps) provided you have an appropriate webcam and sufficient Internet upload speed
• check out Logitech C920 Webcam: for a Superior Skype Video Calling Experience for more details
• Group Screen sharing – where a participant in a Group Video call can share either a window or the full desktop with up to ten participants; this requires that the host of the call have a Skype Premium subscription
• Check out Skype for Windows 5.6: Call Monitor, Enhanced Screen Sharing – and Ads! for a discussion on how Skype’s screen sharing works.
• Hiding offline Facebook contacts (Contacts | Hide Contacts Who | Are offline); in addition to hiding Offline Skype contacts
• Push-to-Talk – for multiplayer gamers – allows users to set a hotkey to toggle microphone muting on a Skype call
• Bing Bar integration (is this the first sign of a Microsoft integration?)

It’s a two screen upgrade process – in my case it took about five minutes as I have over three years of Skype chat conversations stored on my local PC; they still come in very handy using the search feature (Ctrl-F).

Video calling to Facebook users (independent from whether they have a Skype account) is still in beta but included with this release. What does beta mean? While it works quite well, there are still some issues to work through and still needs to address more feedback from user experiences:

• Need to be able to select speakers in FB window in addition to webcam and microphone
• Call from Skype to Facebook contact: when sending 720p 16:9 aspect ratio from Logitech C920 on Skype side; image on FB side is distorted to 4:3 aspect ratio – recipient on FB side should be able to see 16:9 aspect ratio

You can download this latest release by going to “Help | Check for Updates” in your Skype for Windows client or downloading here.

From the time just over four years ago when Skype introduced High Quality Video at VGA (640 x 480) resolution and 30 frames per second (“fps” or “frame rate”) I have had the opportunity to test many webcams for Skype Video calling. In the fall of 2010 I reported on the launch of HD Video calling (1280 x 720 or “720p” – @ 22 fps) using webcams from FREETALK and FaceVsion. In the spring of 2011 I first tested a “conference room” video webcam from FREETALK; “conference room” webcams are suited for covering the longer range typical of a small-to-medium conference room size rather than a close-up desktop PC webcam for both video and audio.

Last week I received an evaluation unit of the recently announced Logitech C920 webcam. In my CES 2012 post Logitech C920 sets new Skype HD Video standards I discussed some of its unique features such as:

• the first Skype-certified webcam to deliver 1080p HD video
• the minimum required upload speed to acheive 720p HD resolution is 1 Mpbs
• dual stereo microphones

On receiving the webcam I learned there is more:

• my first encounter with a Skype-certified webcam that delivers 720p HD video at 30 fps
• faster ramp-up to 720p HD from call launch
• delivers 1080p video at 21 fps
• 15MP webcam for photo capture
• delivers an excellent quality image (feedback all those whom I have called)
  • takes full advantage of Carl-Zeiss optics, 20-step auto focus and “Right Light” feature
  • Logitech calls this “Liquid Fluid CrystalTM” technology

Having made several calls with the C920; they have been my best Skype video calling experiences of all.  I am using a Dell Vostro V410 quad core PC that is about four years old. Requirements include: dual-core 2.0GHz processor, Windows XP/Vista/7, Skype 5.7 for Windows beta or later, Internet upload/download speeds as discussed below.

Worth noting:

Relevant speeds – to set the baseline for this discussion it is important to take a look at the frame rate observed and minimum upload Internet Connection speeds required, based on either vendor specifications or experience:

Previously Skype had specified 1.2 Mpbs upload speed as the minimum required. However, when I started receiving calls last fall from contacts with recent Logitech webcams (C310, C510, C910 and Webcam Pro 9000) I noticed that they went to 720p yet I confirmed that my contacts on these calls only had 1.0 Mpbs maximum upload speed. This was my first clue that Logitech had developed a webcam that allowed HD video on the very common broadband Internet services that cap out at 1.0 Mbps upload speed (and without an onboard H.264 processor).

My service has a 2.0 Mbps upload speed; however, in practice it usually delivers 1.6 to 1.85 Mpbs upload speed. So while I was expecting to easily get to 720p I was only being hopeful (or lucky) if a call went to 1080p.

Overall speed observations during a call:

When you initiate the C920 webcam (either when launching a call or by turning on the webcam during a call) it comes up almost instantly with a video image; no swirling icons waiting for the webcam to get started. But the other noticeable difference was that it usually takes less than 30 seconds for the webcam to start delivering HD video at 720p.

One other noticeable improvement was that the Logitech C920 is the only webcam that delivers 720p at 30 fps whereas the other HD webcams could only go to 22 fps. (Not a terribly noticeable difference but it becomes television quality with no choppiness or pixilation).

Overall one has a much improved call initiation experience and on all calls to other PC’s it has always switched to 720p HD in somewhat less than a minute.

All of my calls went to 720p at 30 fps as would be expected with my service’s upload speed; however, I did have two calls go to 1080p at 21 fps after about 10 to 20 minutes (remember I’m not supposed to get 1080p at all); this held for the last 20 to 30 minutes of those two calls. From the call technical info I could also see there was less demand on my CPU processors than I had previously experienced (usually had been well over 50%).

Note that these calls were to users with Skype for Windows or Skype for Mac; a call to Skype for iPad (to an original iPad) was observed to be at VGA resolution (640 x 480) at 15 fps; a call to Skype for TV on the TelyHD device went 720p at 15 fps on both sides of the call. In other words, the combination of Skype and the webcam will adapt resolution and frames-per-second to the resources of the device at the other end of the call.

The mounting bracket – one other feature that was immediately obvious was the flexibility of the mounting bracket. Using a combination of hinges and rubber surfaces, it easily mounts onto the top of any flat panel display; yet it can also sit on, say, a desktop surface. Not only does it mount readily and firmly but when on the display frame it can easily be titled up and down. Finally the underside has a tripod thread such that it can readily be mounted on any tripod.

Software: The C920 is accompanied by software that is downloaded from the Logitech website. This includes the Logitech Webcam Controller which can be used for setting zoom/pan/tilt as well as making adjustments for lighting (“RightLight”), auto focus and sound (“RightSound”). Also included is “Logitech Webcam Software” which provides:

• Video recording (up to 1080p resolution),
• Links to common video calling applications (Skype, GMail and Logitech Vid),
• Motion detection  – start recording when motion is detected, and
• Video mask maker – special effects
• Web Gallery – storing and editing recordings with the  ability to download to Facebook, Twitter and YouTube or to share via email.

Audio: The C920 also includes a microphone on each side to pick up a stereo effect and making it suitable for larger distances in, say, a small conference room. I was able to test this out in a small office environment during an HD video call and found it to work satisfactorily. While the other party on a 90 minute call reported that there can be a bit of “barrel” effect, Skype’s echo cancellation worked perfectly.

Call Example:

Call with Mike Phillips¹ (@mcphillips) who had a Logitech C910 webcam; this was captured when the C920 was delivering 1080p resolution. Mike’s Internet service had a 5 Mbps upload speed. Click on the images for a larger version:

What does H.264 have to do with this? Everything! Recall:

• Previous webcams with H.264 onboard processors took 30 seconds to 3 minutes to go to HD resolution; they capped out at 22 fps. They required 1.2 Mpbs upload speed and would take 15 seconds to a minute from launch just to show an image.
• The previous Logitech HD webcams had no onboard processor (in other words they did their video processing on the main PC using up CPU cycles); they went to 720p resolution on services with only 1.0 Mbps upload speed.
• The Logitech C920 turns on immediately, goes to 720p HD much more quickly (15 to 45 seconds), goes to 30 fps – and it goes to these performance levels consistently when calling another PC.
• The Logitech C920 reduces the demand on your main PC processor and bandwidth requirements.
• It allows a much better experience when recording a video call with, say, VodBurner, reducing wait times and quality loss that would arise from encoding on the main PC.

Putting these observations together tells me that the Logitech engineers have been hard at work not only to deliver the the best video calling experience at HD resolutions but also to  ensure that technology to achieve this performance becomes transparent to the entire Skype video calling operation. (And, given that it requires Skype 5.7 for Windows (beta) or later, it says they have been working with Skype’s audio/video engineers.)

What does the other party have? I have made calls where the other party had various Logitech webcams (C310, C910 and 9000 Pro), a recent MacBook Pro webcam and a FREETALK Everyman HD webcam. In every case my experience with the the C920 was as described here. Of course to receive HD video they must have at least a 1Mbps download speed (usually not an issue with any broadband Internet service) and a recent version of Skype – Skype 5.x for Windows, or Skype 5.3 for Mac or later. It also worked at 720p HD on a call to Skype for TV on the TelyHD device. It makes calls, but at VGA or loeer resolution, to Skype for iPad and Skype for iPhone.

There was one instance where the other party switched to an older non-Skype-certified webcam during a call (from a Logitech C910) and basically we could not get any semblance of good call quality. On the other hand it appears to work well when the other party is using a webcams built into laptop and flat panel monitor displays.

Skype Group Video Calling: While Skype Group Video Calling only delivers VGA resolution, due to screen real state issues when showing up to 10 participants and desktop sharing, I would expect this webcam to perform better in terms of speed to get into a call and robustness during a call as well as demand on the local CPU resources. I’ll report back after my next group video call later this week.

Bottom line: The Logitech C920 delivers a quantum leap to the user experience for Skype video calling, especially when it comes to taking advantage of HD video:

• The webcam fires up delivering video images almost instantly after launching video
• It reduces the minimum upload speed requirement for 720p HD video to a speed available on most broadband Internet services
• It goes into 720p HD video much more quickly (not to overlook at a TV quality frame rate)
• If you have sufficient Internet connection upload speed, it delivers 1080p video at a reasonable frame rate.
• It delivers a smoother, more robust and sustainable HD video call experience
• Its optics deliver the best quality images when it comes to natural colors and color depth, sharpness and dealing with lighting issues.
• It reduces the load on your PC processor/CPU
• It easily adapts to mounting on any monitor or laptop display, work surface or tripod.
• It works with other services such as GTalk and Logitech Vid
• It provides a much better experience with video recording
• I have recorded a Skype call with VodBurner
• It includes a recording ability with single click download to Facebook, YouTube and Twitter.

As mentioned at the beginning I have followed Skype video calling for over five years; I have checked out many webcams, especially when it comes to HD video. If you are looking to have the best overall Skype video calling experience from a Windows PC, it’s well worth spending the $99 to achieve it.

The Logitech C920 is available on Amazon and at electronics retailers such as Best Buy.

In another post I’ll talk about successfully recording a Skype video call using this webcam and VodBurner.

And the inevitable Mac question: while a reviewer on Amazon.com claims it worked on his Mac, Logitech will not comment on future products. In any event full Mac support, certainly for 1080p resolution, would also require an upgrade from Skype for Skype for Mac – Skype has made no announcement in this regard. In a response on Logitech’s community forum:

Unfortunately, at this time, there are no plans to provide Mac support for the C920; however, I suggest keep checking our website as we are always coming out with new solutions.

Currently the Logitech C910, as shown in the chart above, does support the Mac and offer most of the C920 features except support for 1080p  and the onboard H.264 processor as the major omissions.

¹Mike Phillips blogs on Scoop.it at Equipment and Techniques for Webcasters and Podcasters and hosts a weekly podcast Computers 2K Now Sundays from 9 to Noon ET where he and his co-hosts discuss podcasting, webcasting, broadcasting and audio. Follow him on Twitter @mcphillips

Two years ago at CES 2010 Skype announced Skype for TV with two partners (Samsung and LG). It was only available on very high end Internet-enabled TV sets and required vendor-specific webcams. Effectively the cost of adoption was over $1,500. CES 2011 saw an expansion of the number of TV set vendors (Panasonic, Toshiba, Sony, Vizio) and the support of Skype for TV on BluRay DVD players from Panasonic and Sony, bringing the cost of adoption down to about $400 for the player and a supporting webcam.

One other complication was that all these offerings required a webcam that was specifically designed for the individual TV/player vendor. At a July 2011 panel discussion, Skype President Tony Bates mentioned that Skype for TV was installed into over 50 million TV sets; however, again these were mostly high end sets with a price point that did not encourage mass consumer adoption.

At CES 2012 there were some demonstrations and announcements that effectively make it possible to enable every television set to support a Skype for TV video or voice call at a much more reasonable cost:

• Tely Labs launched its TelyHD platform – an Android-based webcam that embeds HD video support of Skype for TV. Most significantly it is TV vendor-agnostic as it can work with any TV set that has an HDMI input. More on TelyHD to follow in an upcoming review. Total cost: $249.00 including webcam, available at the Skype Store.
• The newly announced Sony BDP-S790 BluRay player, available later this spring, is unique from a Skype perspective in that it will work with any webcam that supports Skype.

• Sony was also demonstrating a prototype of its forthcoming Android-based “Smart TV” set top box as its version of Google TV. It will deliver all the common Internet social networking applications such as Twitter, Facebook, YouTube and Skype, amongst others, to any TV set and again work with any webcam.
• Samsung announced its inTouch Android-based webcam supporting Skype and other social networking applications; deliveries to commence later this spring.
• All of these devices support not only HDMI and 720p HD video resolution but also an embedded WiFi internet connection.

Samsung was demonstrating Skype for TV where, as shown on the right, the webcam was embedded into the top frame of the television set. While apparently still supporting Skype for TV, there were no demonstrations in the Toshiba or LG booths.

Panasonic and Sony had new versions of their BluRay player, as well as new firmware supporting Skype for TV on their Viera and Bravia lines respectively. As shown in the video below, Panasonic’s firmware allows you to watch TV during a Skype call where you can switch the audio between Skype and the TV channel audio within the context of the conversation.

http://www.youtube.com/watch?v=ZQhj7za2uNk

A couple of the booth personnel mentioned that the one feature missing in a world where all TV vendors are actively encouraging 3D TV was the ability to adopt Skype for TV to 3D; apparently many of their other “smart TV” social networking applications somehow have the ability to “upscale” 2D to 3D. Not something I’m holding my breath waiting for, especially given what the webcam requirements would be.

Bottom line: The launch of products lowering the adoption cost of Skype for TV, especially on existing TV sets, significantly expands the potential user base of Skype for TV, not only for consumers but also for business use. The number one advantage is the ability to hold video calls where the other end point can be a PC, smartphone (iPhone, Android phone) or tablet – or another TV set that supports Skype for TV.

On the other hand, at the time of writing this post Skype for TV does not support Group Video Calling; in fact, currently one cannot even be a participant on a Group Video Call with Skype for TV.

While the webcams for Skype for TV are currently vendor-specific, it appears that the ability to use a generic Skype-certified webcam should appear later this year on the Sony devices. On the other hand TelyHD offers a complete solution in one hardware package.

Related articles

• Google TV’s biggest competitor looks awfully familiar (gigaom.com)

The Consumer Electronics Show is the industry’s largest international gathering that tends to take over Las Vegas for four days. Skype at CES 2012 is rather low key this year with no press announcements, a small “open air” Skype Lounge in the Central Plaza in front of the Las Vegas Convention Center and a kiosk in the Microsoft booth.

The Skype Lounge features a demonstration of the recently announced TelyHD Skype video calling for any TV set and Skype Video Calls on a large screen with various local Las Vegas locations such as a museum and some school attractions. Occasionally they get worked up with “jump time” throwing out free cell phone socks to passersby. The biggest issue here is visitor traffic; due to its location barricaded largely by a key roadway for shuttle busses and taxis, it’s a little like the barriers put up by an urban freeway.

Meanwhile over at the Skype kiosk in the Microsoft booth are two sides; one with four PC’s where visitors can make Skype calls; on the other side a 55” LCD TV screen receiving an HD video transmission from the Skype Lounge. Lots of traffic; but no presentations as done at some other Microsoft kiosks (Windows 8, Kinect, Windows Phone, etc.)

Make Free Skype Calls	Skype for TV at 55” (720p HD, no pixelating)

On the show floor so far I have seen Skype in the Logitech booth (new C920 1080p HD webcam), Blue Microphone with a unique USB microphone for laptops and NVidia where there is another TelyHD demonstration.

I’ll have more to report on TelyHD after an interview later today.

And our presence did get tweeted.

Bottom line: It is called the Consumer Electronics Show where the focus is on the business relationships behind end user experiences for consumers. While Skype had no news announcements, they focused on demonstrating the user experience and applications of video calling. At the same time I suspect Skype is working out the path to its incorporation into Microsoft products – Live, Xbox/Kinect, Office, Windows Phone, etc. And we’ll hear about it at some Microsoft -sponsored event – tying in with their reasoning for dropping out of CES as both keynote and exhibitor.

Last night at ShowStopper at CES 2012 Logitech was demonstrating its newly announced HD Pro Webcam C920; it sets some new performance standards that open up a much larger market for HD video on Skype:

• the first Skype-certified webcam to deliver 1080p video
• the minimum required upload speed is 1 Mpbs
• dual stereo microphones

It also now supports H.264 encoding which reduces the load on the main PC processor and allows HD Video calling on more PC’s. Standard Logitech features such as autofocus and Carl-Zeiss optics are also included. All for $99.99.

The reduced minimum upload speed (as opposed to the previous requirement for 1.2Mbps upload speed) opens up HD video calling to anyone with the most common broadband connections which are most often capped at a 1Mbps upload speed. (I have recently had calls from the earlier C310 and C910 where the caller’s video went to HD yet their upload speed was capped at 1 Mbps.) And supporting 1080p allows “telepresence-like” images on much larger displays in full screen mode (720p video does a great job on up to 22” displays).

In their demonstration they had two PC’s on a Skype video call where one (in the right) used its native webcam while the other(on the left)  used the C920. The image quality difference shown in the photo was definitely real. (Because it’s a video call the transmitting webcam on the left shows its image on the receiving PC on the right.)

At the moment it only supports Windows® XP (SP3 or higher), Windows Vista® and Windows® 7 (32-bit or 64-bit); it requires Skype 5.7 beta for Windows to support the 1080p video. The 1080p video can be received on any Skype client.

Bottom line; Logitech has a long history of supporting Skype Video calling (going back to the launch of Skype’s High Quality Video VGA calling) and appears to continue to have leading edge offerings. It should be available in retail stores and the Skype Store by the end of January. At that time I’ll look to do a more thorough review.

Update – The Review: Logitech C920 Webcam: for a Superior Skype Video Calling Experience

Logitech Press Release

Logitech Blog Post

Related articles

• Logitech C920 first webcam with 1080p video calling (ces.cnet.com)
• Logitech outs C920 HD webcam, lets you Skype with your mates in 1080p (engadget.com)

Since its launch in August 2003 Skype has developed its brand through “free” calling for Skype-to-Skype voice and video calls as well as chat. However, whenever they launch a revenue generating offering, users need to experience the actual feature before paying up. Recently Skype has come up with a couple of ways to have a free user experience of a feature.

Experience Skype WiFi

Skype WiFi is a “last resort” offering that allows nomadic Skype users to make calls when traveling from over 1 million access points worldwide at airports, restaurants, hotels and coffee shops amongst other “road warrior” locations. But at a cost that is country dependent but about 20 cents/minute in the U.S.

Yesterday Skype announced free Skype WiFi over the Christmas period (December 21 to 27) at 50 U.S. airport locations. Provided your battery is charged or you have access to a waiting room power outlet, you can not only make Skype and SkypeOut calls but also check your email and surf the Internet for up to one hour. (You can also access Skype WiFi on your iPhone or iPad if you have installed the Skype WiFi app.)

Experience a Simulated Group Video Call … and have some social fun at the same time

Skype’s Group Video Calling requires a Skype Premium subscription; however, through Skype’s Facebook page you can experience how Group Video calling works while sending birthday greetings or Happy Holidays wishes via a Skype Facebook application: Say It With Skype. Skype has worked with several bands to create melodious greetings that can be sent via a friend’s Facebook wall, a URL or embedded into an email message. Click on the tabs to see the progress.

The resulting video is a simulated Group Video call where each member of the band selected is a separate Group Video Call participant. And, if you elect to record, your own video is added in. Not quite a full Group Video Call experience but you start to get a feel for it. On the other hand the couple of recipients to whom I have sent these have appreciated them; it’s one way to have a bit of fun with Skype.

For a complete Group Video Call experience the 7-day trial remains available.

Personally I have been on a weekly Group Video Call that has participants in three continents across nine time zones for the past five months. When you consider that a Skype Premium subscription also incorporates Skype Out calls to U.S./Canada and Live chat support, at $4.49 per month for a one year subscription, it’s a no brainer.

Yesterday Skype announced the availability of Skype 3.6 for iOS (iPhone, iPad) with three key updates:

• Chat improvements: Copy and Paste & URL links now work
• UI improvements: Edit button reinstalled in Messages
• Stability improvements and various bug fixes

I installed the upgrade on my iPad (original version) and found the last item is the most important. The initial screen comes up much more quickly showing recent conversations in the left sidebar and “All Contacts” for your account. Go to “Online Contacts” and watch the Contact images “dance around” as Contacts come online or go offline.

Chat sessions with individuals now open up almost instantly when you select a Contact; new messages arrive immediately (at the same time I see them in Skype for Windows). The one remaining “laggard” is bringing up Group Chat sessions where Skype for iPad may take a while to initialize the session as it catches up with all the Contacts in the Group and brings in recent chat messages (in one case for my setup over 300).

I also checked out the Copy and Paste as well as URL links within a chat session; they both work fine. Touch on the message to get the “Copy” icon; touch within the message window to get the “Paste” icon.

Bottom line: Skype 3.6 for iOS is a “must do” upgrade due to these speed improvements. Normally I don’t get pushy about upgrades but this one makes such a performance improvement it is highly recommended. It makes Skype for iPad much more useful as an “always available” Skype platform; for that reason alone it’s worth the upgrade (done via the Apple App Store).

P.S. – When I find my “lost” iPhone I’ll do the upgrade there as well. (“Find my iPhone” did an update a few days after I lost it that would have helped immensely.)

Recently Skype has participated in several technology sharing activities with Facebook: Facebook Video Calls, Facebook Chat sessions through the Skype client, a Facebook news feed on the Skype client home page and most recently video calls from the Skype client to your Facebook Friends.

However, until now Skype has been somewhat weak on using Facebook for social networking’s real power – user engagement. Even so over 5,000,000 Facebook users had “Liked” Skype’s Facebook site.

Three weeks ago Skype launched its new Facebook Fan Pages site with a focus on building user engagement. According to Jennifer Caulkin, Skype’s Social Networking Manager,

“We revamped the Skype page on Facebook because its about engagement with our fans.  We want to give them compelling content, access to product information, the latest Skype download, exclusive deals, unique promotions and fun stuff.”

One of Skype’s marketing challenges is to make users more aware of Skype’s broad feature set beyond basic voice and video calling. Skype’s Facebook page is one step in this direction with its focus on allowing users to more readily learn about these activities, experience some Skype features and provide feedback.

Several new tabs have been added (click on”More” to see all tabs). For instance, Skype  and Facebook provides a promotional video about using Facebook from the most recent versions of the Skype for Windows/Mac clients. “Stellar Deals” describes a few “bundle” packages involving hardware and Skype calling plan subscriptions. (However, would be more useful to have these specials offered beyond the U.S.)

Say It With Skype provides a way to experience Skype Group Video calling by using Skype Group Video to send a birthday greeting. More on this in a post to follow.

Much of Skype’s Facebook site is promotional, encouraging use of services, purchases and having fun. However, here’s where the reality hits the fan: the Facebook Support tab is one channel for entering issues with using Skype. When an entry is made onto the Support tab it is immediately also copied over to Skype’s new Community Forum for a response. Replies posted to the item in the Community Forum are then also copied back to the Facebook Support page. Click on the tabs below to see how one entry is mirrored on the two support venues.

Skype Support Channels - An Example Entry

• Facebook Support Page
• Skype Community Forum

Basically the Community Forum mirrors any entries on the Facebook Support page where Skype personnel and Community Forum members can respond to an issue.

Eventually it will also be possible to post Replies directly onto the Facebook Support page; however, due to a recent change in Facebook’s requirements for Fan Pages, Skype is working on the adjustment required to adhere to Facebook’s new policy re Fan Page security.

Bottom line: many businesses are feeling their way to determine how Facebook’s Fan Pages can be used for user engagement and as a marketing tool. While there is certainly going to be a lot of self-promotion, providing opportunities for customer participation or user feedback is critical to maintaining the integrity and credibility of Facebook Fan Pages and, most importantly, repeat visits. Only time will tell how successful Skype can be with their Facebook presence but at least there is now a concerted focus on engaging users through social networking activities.

Related articles

• Skype Now Using “@SkypeSupport” on Twitter (disruptivetelephony.com)

Today Skype announced the availability for user testing two upgrade clients: Skype for Windows 5.7 beta and Skype for Mac 5.4 beta. Most importantly this brings major feature equality, including one major new feature, to both:

• Both expand their ability to combine real time communications with asynchronous social networking. The major feature introduction is the launch of one-to-one video calling from the Skype client to your Facebook Friends. In addition there are updates to the delivery of Facebook presence information to/from your Skype client.  Combined with the previous Facebook news feed and Facebook chat, the Skype client is also becoming a unique Facebook client/user interface.

• Skype 5.7 for Windows beta now supports screen sharing in Skype Group Video Calls – a feature available on the previous release of Skype for Mac.
• Skype for Windows has also added a “Push-to-Talk” microphone toggle in its hot-keys menu (Tools | Advanced | Hotkeys). (OK, this feature, addressing a request from gamers, is missing from Skype for Mac).

Bottom line: For the first time it would seem that both Skype for Windows and Skype for Mac have feature equality for all their major features. The challenge remains to make the user interface, including navigation, consistent between the two. At the moment they require two different learning experiences. And Skype for Mac is still missing the Call Quality Information bar.

More to follow once there has been a chance to try out the new features. Keep in mind this is beta software and may still have bugs. From one of the announcement posts:

Please post your comments and suggestions on our Support Network and in case you see the odd bug then please report it to us on our public issue tracker, so that we can make the next release an even better one.

Update: Dan York confuses feature equality with porcine aviation: OMG! Skype Simultaneously Releases (Almost) The Same Version on Windows and Mac OS X

Related articles

• Hands on with Skype’s new Skype-to-Facebook video calls (gigaom.com)

Applicable to both Skype for iPhone and Skype for iPad, a Skype for iOS5 3.5 hotfix released to the Apple App Store earlier this week restores Skype chat sessions on the iPhone/iPod Touch and iPad to pre-version 3.5 performance.

While Skype on my iPhone or my iPad is not my primary platform for using Skype, it has become an important backup for monitoring Skype chat threads when I don’t have access to a PC. I could at least follow a thread and make a short response, if appropriate in context. (Full disclosure: I have over 500 Skype contacts which challenges the performance of Skype on these devices due to presence and other ongoing “tracking” issues.)

While the iPhone’s processor speed limits performance relative to responsiveness on a PC, chat sessions with individuals had usually been fairly quick in responses while a little bit of patience was required to follow group chat sessions, especially with more than 50 participants.

However, the release of Skype 3.5 for iOS5 in late September, while introducing some new features and modifying the user interface, also degraded the performance of chat activity. Going to a group chat session would totally freeze the application on either device; even one-to-one chat sessions were unforgivingly slow to follow and respond to. Launching Skype for iPad had long durations bringing up the most recent conversations. I had reported these issues (and I’m sure amongst many others) through Skype’s bug reporting channels; this issue is also raised in several reviews at the iTunes App Store.

Earlier this week I found a new hotfix version 3.5.454 of Skype for iPhone/iPod Touch and Skype for iPad available on the Apple App Store. I have downloaded it and tested it. On a couple of occasions when away from the home office the past few days I found that Skype chat activity on both devices has returned to its pre-version 3.5 performance levels and can once again be a resource for monitoring Skype chat activity while away from a PC. As for group chats, they still take a one to three minutes to catch up but once the content is there, it is fairly responsive.

I have tested Skype-to-Skype calls and SkypeOut calls; for the few times I use this feature, it seems to be working fine.

One caveat: I notice some reviews of this upgrade report that Bluetooth functionality, initially available with Skype for iOS5 3.5, is broken. Update: on my own testing with my car audio by calling Skype Test Call, the Bluetooth connection always attempted to connect but only held the connection to the actual call on one out of three calls.

Bottom line: if you have not done so already, go to the Apple App Store and upgrade your Skype for iPhone and Skype for iPad (it should automatically be offered as an upgrade). It’s not yet at the point where it can take over for Skype on your PC but at least it’s workable for those times when you’re away from a PC. Skype still has some work to do to get to a PC-level of performance at least in terms of chat operation.

For further performance improvement I would still like to see an option to create a subset of my Skype account’s Contacts via the “Category” feature of Skype for Windows or “Tags” feature of Skype for Mac¹. These can then become the Contacts followed on an mobile device. (At least until we see dual core 2.0 GHz processors on these devices.) This would also assist in addressing the ongoing battery drain issue, especially on the iPhone/iPod Touch. (I will continue to monitor this upgrade to see if there is any improvement in the battery drain.)

¹Note that “Categories” in Skype for Windows become assigned as “Tags” in Skype for Mac.

Last week I provided a review of my experience with a recent production model of the FREETALK® Connect•Me Adapter for Home Phone, initially available in the U.S. and Canada. To quickly recall its primary feature, the Connect•Me Adapter allows you to make PC-free Skype and SkypeOut calls and, optionally, landline calls from an existing home phone.

It turns out that adapting this product to other countries involves more than simply supporting another plug for the power connection. The landline telco industry backbones in each country also have variables that need to be addressed in order for the landline component of the FREETALK® Connect•Me Adapter for Home Phone to work properly in an individual country.

Effective today U.K. residents can “Skype from your Home Phone” with the launch of the FREETALK® Connect•Me Adapter for Home Phone U.K. edition. It’s available at the U.K. Skype Store, with options that include three month subscriptions for:

• up to 300 minutes** of international calls to landlines and mobiles, or
• unlimited* calls to landlines in the UK and Ireland and up to 300 minutes of international** calls to landlines and mobiles, or
• unlimited* international calls to landlines and mobiles in 41 countries***

It’s also available at Amazon U.K. and the eBuyNow UK store with similar options for Skype calling plans.

Of course Skype-to-Skype calls worldwide continue to be free.

For those U.K. residents who want a new dual mode PC-free phone (Skype and PSTN landline) a Philips VoIP855 cordless phone has also become available. This option allows you to include up to 200 of your Skype contacts in a phone book (and 100 names for landline numbers) as well as to make use of Skype’s presence feature. The previous GE Digital Cordless Expandable Telephone and RTX Dualphone 3088 are other options available.

Aside from the power adapter and firmware to support the U.K. landine PSTN, the discussion points in my previous review apply.

In conjunction with these product announcements Skype has issued a press release covering a survey they recently sponsored:

• No job too far – 50% of Brits say accepting a job abroad is easier with advances in communication technology

Note re the calling plan offerings:

*A fair usage policy applies. Excludes service, special, premium and non-geographic numbers. UK landline calls are those made to area codes beginning 01 and 02.
** The actual number of minutes may vary depending on your calling destination and the number of calls you make. A connection fee applies.
***Unlimited calls to landlines and mobiles in Canada, China, Guam, Hong Kong S.A.R., China, Puerto Rico, Singapore, Thailand, United States
Unlimited calls to landlines only in Argentina, Australia, Austria, Belgium, Chile, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Japan, South Korea, Luxembourg,Malaysia, Netherlands, New Zealand, Norway, Poland, Portugal, Russia (Moscow and St.Petersburg only), Slovakia, Spain, Sweden, Switzerland, Taiwan, United Kingdom

While the FREETALK® Connect•Me Adapter for Home Phone became available in late August, I only received a production hardware version three weeks ago. I have now had a chance not only to verify the operation of all its features but also to observe some of the reviews.  But before talking about its operation I want to identify its market positioning as a result of my own experience and some of the review comments.

What is FREETALK® Connect•Me Adapter for Home Phone?

It’s essentially an ATA adapter that allows you to use a conventional 12-key TouchTone analog phone¹ to make calls to Skype Contacts and SkypeOut numbers over an Internet connection. Optionally you can continue to make calls over a landline.

Who is it for?

Anyone who wants to make Skype and SkypeOut calls without the need for a PC and already has a 12-key TouchTone phone. It is especially convenient for use with today’s very common cordless home phone setup comprising a base station and multiple handsets distributed around the house.

It offers a worldwide long distance service that combines free Skype-to-Skype calling with low cost SkypeOut calling to the PSTN. When combined with a local landline service it provides a unique complementary long distance service, especially if you are making international calls outside U.S./Canada.

Initially it is only available for use in U.S. and Canada; versions for European and other countries are anticipated to follow early in 2012. Update, Nov. 15, 2011: FREETALK® Connect•Me Adapter for Home Phone is now available in the U.K.

What is it not?

A complete replacement for a landline service. You still need a landline or alternative service for emergency e911 calling. Also the landline service will often include “free” local calling to a region identified by the carrier.

What are the requirements?

• A traditional 12-key TouchTone phone with its standard RJ-11 cable connection
• A broadband Internet connection (via a port on a router connected to your cable or DSL Internet service) accessed via a standard RJ-45 Ethernet cable connection
• An AC power connection (110-120 volt in US/Canada)
• For configuration and setup only: a Windows or Mac PC
• Optional: a traditional PSTN landline service with RJ-11 cable connection

Why would you buy it?

• To place free Skype-to-Skype voice calls to any destination worldwide from the world’s most familiar telephony user interface
  • the call can be received on any Skype-enabled platform: PC, smartphone, iPad, TV or even another Home Phone with Connect•Me.
• To take advantage of Skype’s low worldwide international calling rates and calling plan subscriptions for calls to the legacy PSTN or mobile phones in over 180 countries.

So what has been the experience?

While most of my calling involves using Skype on PC’s or a wireless service on a mobile smartphone I have maintained one line of a legacy PSTN service from Bell Canada, mostly for local calls and as a matter of convenience.  I also have a long time investment in this phone number as my primary business number. (My fax line has been replaced by PamFax; a second voice line became redundant a few years ago.)

A couple of years ago I reviewed this setup with Bell Canada where I wanted a minimal long distance capability while maintaining the ability to make local calls. Just having access to a reduced long distance charge was costing me $11.00 per month before making any calls. I seldom made long distance calls on that line but needed it for emergency circumstances such as when my smartphone batteries had died or my Internet connection was down. It was also a convenience when placing local calls from its physical location.

I have replaced the Bell Canada long distance service with the Connect•Me Adapter with the following consequences:

• I can make Skype-to-Skype calls worldwide at no cost
• I can make SkypeOut calls at 2.3 cents/minute vs Bell Canada’s charge of 10 cents/minute
  • I have the option to use a Skype Calling Plan subscription, if call volume suffices
• I have eliminated the $11.00 per month fixed charge from my Bell Canada bill.
• I make “local” calls over the landline at no additional charge beyond the monthly service charge.
• I continue to have access to Bell’s auxiliary services such as call forwarding, call waiting and basic voice mail.
• TouchTones (DTMF signals) are passed through successfully for services that require, say, dialing into a business extension or placing a prescription order with a drug store.

But here are the caveats:

• I need to start landline calls using the # key followed by the normal 10-digits for local calls.
• I can start SkypeOut calls by dialling ** followed by [country_code] [area_code] [local_number]
• I can access up to 100 speed dial numbers for both Skype and SkypeOut calls
• I have set up a separate Skype account with only 30 to 50 contacts. This becomes an essential consideration if you are using this service for personal or family calls and your normal Skype account is used heavily for business. Note that the Connect•Me Adapter can handle up to 200 contacts.
• Due to my low SkypeOut call volume on this phone line I am using Skype credit for SkypeOut calls; however, one can use a Skype Calling Plan to call U.S./Canada at $2.95 per month or over 40 countries worldwide at $13.95 per month subject to Skype’s fair usage policy.
• And to repeat (from the user portal):

• If you have a landline connected, dial #911 for e911 service.

And how is the voice quality?

Calls using the landline have the same quality as a normal narrowband landline call. (When placing a landline call you’ll hear some exotic noises while placing the call but the connected call allows me to carry on a normal phone conversation with no audible distractions.)

When making a SkypeOut call to the same number I have observed noticeably clearer voice quality compared to using the landline . And on Skype-to-Skype calls there is excellent voice quality.

By making a call to my primary Skype account on a Windows PC I was able to check the Call Technical information which reported a “NWC” codec with 16KHz sampling. This confirms that, where feasible, the Connect•Me Adapter supports wideband audio. I am told that NWC is actually a dynamic codec that will switch between narrow band audio G.729 and wideband audio G.722 codecs as appropriate to the connection conditions. But the bottom line has been a much crisper audio on a SkypeOut call than experienced on the landline.

How does the Connect•Me Adapter get set up?

The Connect•Me Adapter is accompanied by a user portal for setting up:

• Call Settings –
  • Do you want to have local calls default to the landline or SkypeOut?
  • Do you want international calls to default through SkypeOut?
• Call Forwarding and Voicemail –
  • calls to your Connect•Me-enabled home phone can be forwarded to, say, your mobile phone or any other landline number; the delay before forwarding can also be set.
  • if call forwarding is not set up you can set up and use Skype voicemail. If both are setup call forwarding takes priority.
• Contacts and Speed Dials –
  • Add Skype Contacts to your account, set up speed dials for making Skype-to-Skype calls and SkypeOut calls.
  • There is an option to print out your speed dial list.

Firmware Upgrades: From time-to-time FREETALK will issue upgrades to the firmware to offer new features and/or bug fixes. The first upgrade added support for Skype voicemail. These upgrades are provided automatically with no user intervention required. There is an option in System Settings to define a time-of-day for accepting upgrades, such that upgrades will not interfere will normal calling times.

Update: as I was finalizing this post I lost power at my office location. When power was restored about 30 minutes later, the Connect•Me Adapter came back up within a couple of minutes; I was able to make both Skype and landline calls with no user intervention.

Bottom line: The FREETALK® Connect•Me Adapter for Home Phone provides an option for taking advantage of Skype’s services for voice calls using a standard 12-key TouchTone phone set. It can either be a stand alone service for long distance calling, with the caveat that it does not support e911 emergency calling, or an international long distance service complement to a “local” landline service.

When attached to a DECT cordless phone base station, it will Skype-enable all the handsets around the home.

Initially the FREETALK® Connect•Me Adapter for Home Phone is only available for use in U.S. and Canada via either the Skype Store or the Amazon U.S. and Canada stores (search for FREETALK under Electronics). There are three SkypeOut options:

• 60 minutes of SkypeOut calling as the starter package
• a one year North American (US/Canada only) Calling Plan subscription, or
• a 3 month worldwide Calling Plan subscription to over 40 countries

Individuals need to make their own assessments of the savings they will achieve by using the  Connect•Me Adapter. In particular “local” landline services and calling plans will vary by carrier. The information presented here is for one particular circumstance using the author’s landline carrier.

Should you wish to make PC free calling but require a phone handset, the GE Digital Cordless phone offers a more complete Skype experience as it can embed your Skype Contacts and provide presence information.

Full disclosure; the author was a participant in late beta testing for this product using a pre-production version of the device; however, he has received no compensation for his evaluation and feedback. There are no affiliate links in this post; if one clicks on the link to PamFax, there are affiliate links on that page.

¹ It will work with any single line phone, including cordless phones, except older cordless phones where the cordless connection works over the same 2.4GHz band as WiFi. Also, run legacy Nortel phones with a power adapter in its “backup” mode using power from the phone line – i.e. – without the power adapter.

Related articles

• Now you can use your home phone for Skype calls (gigaom.com)
• New Freetalk adapter makes Skype more like MagicJack (skypejournal.com)

Skype announces new names for its developer offerings, new video API’s for SkypeKit for Desktop and “plugged into Skype” designation for Skype Desktop API programs.

Since 2004 Skype has evolved an API kit that allows third party developers to offer Skype-enabled applications that require access to the primary Skype client on Windows, Mac and Linux. Basically it allows developers to extend the functionality of Skype while using the Skype client application. Examples have included call recording applications such as Pamela and VodBurner and hosted desktop sharing applications such as InnerPass (now transitioning to GroupMix).

This past June Skype announced the public beta for SkypeKit, which is intended to add native Skype functionality directly into partner applications. From the developer website:

SkypeKit enables developers to create innovative products and applications that deliver virtually the entire range of Skype’s functionality—including calling, chat, account creation, and contact management—without the need for your users to separately download Skype.

Whereas SkypeKit had largely focused on embedding Skype in consumer electronics hardware, feedback from that announcement demonstrated a demand for more support of desktop applications with integrated Skype functionality.

Today Skype announced changes to the names of their developer offerings:

• SkypeKit for Desktop, which is intended to add native Skype functionality directly into partner applications
• Skype Desktop API, previously known as the Skype API or Public API, which allows developers to extend the functionality of Skype for Windows, Skype for Mac and Skype for Linux.

Basically the previous Skype developer programs continue to exist; however, their branding is changing. It also means that applications developed using the Skype Desktop API can now use the “plugged into Skype” designation shown above.

In addition Skype announced the SkypeKit for Desktop now includes Video API’s which “will allow developers to bring their desktop applications to life using video calling, with the goal of making their applications feel less isolated and more human.” Previously developers could access the the video stream via Skype’s proprietary RTP interface; however, the new API’s relieve developers of a lot of time consuming and complex “wrap around” work that would have been required to provide video in an application. At this point support is for one-to-one video calling; however, group video chat and screen sharing are on the roadmap.

While the announcement post references three case studies, where one is VodBurner that has been using the Skype Desktop API since VodBurner’s launch two years ago. The other two are planning to use SkypeKit for Desktop:

• Tely Labs is still taking beta testers and expects to launch early in 2012;
• Trillian’s Instant Messaging aggregator product has a beta version of Trillian where they are demonstrating Skype integration using SkypeKit.

The announcement also references the new Skype Apps Directory which was discussed here about two months ago.

Bottom line: SkypeKit was first announced mid-2010; it went public in June 2011. If Skype wants to have an viable developer program we need to see results soon that can bring revenue to the developers. Maybe the incentive to recover a $8.5B acquisition investment will provide the focus required to demonstrate that it’s worthwhile to become a Skype developer partner.

Dan York also comments: Is Skype Soon To Release New APIs? Skype Renames Public API And Extends “Plugged into Skype” Partner Program

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.

Overnight Microsoft announced they had closed their acquisition of Skype, following the final EU Commission regulatory approval last week. Key points:

• Skype will remain as an independent business unit within Microsoft under the leadership of former Skype CEO Tony Bates who becomes President of Microsoft’s Skype Division. It’s a new tact for a Microsoft acquisition.
• Microsoft anticipates the integration of Skype into many of its current products – the most obvious being Skype for Windows Mobile and Outlook integration (as well as other Office products). But there are opportunities foreseen for Windows Live offerings as well as its Microsoft Lync enterprise offering.
• Whereas Skype had little enterprise presence other than small businesses and employees who would use it at work, it will be an interesting challenge to see how Skype becomes integrated into Microsoft Lync. There are challenges on the Microsoft side not simply from a technology perspective but also from a business perspective, for example, the costs and burdensome licensing associated with their server-based products.

Tony Bates has put out his vision statement, including a video and an supporting infographic, for Skype’s direction within Microsoft:

Microsoft is committed to the ubiquity of the Skype experience – communication across every device and every platform will remain a primary focus. And we’ve only scratched the surface. We’re at the starting line of integrating world-class talent, innovative technologies and products. By bringing together the best of Microsoft and the best of Skype, we’ll deliver amazing new experiences for consumers and business around the world.

Leading up to the closing we have seen some subtle activity on the Skype side:

• Most notably new releases of most Skype client software that incorporates advertising. Skype intends to place ads in a discrete manner during Skype-to-Skype calls made by users who are not generating revenue through Skype credit, a Skype Calling Plan subscription or a Skype Premium subscription. As mentioned by Skype CEO Tony Bates at a recent forum event, one of Skype’s goals is to generate major revenue through this advertising initiative.
• Skype has continued to offer upgrades for all its supported platforms over the past two months, not only supporting the claim that Skype’s brand would be damaged should they stop supporting platforms other than Windows but also supporting Skype’s initiative to provide more incremental upgrades every two to three months.
• A strong emphasis on Skype’s unique ability to drive video communications in a way that encourages easy adoption (more in a future post).
• Last night Skype released hotfix upgrades to Skype 5.6 for Windows that removed a Google Product Bundle offering, comprising the Google Toolbar and the Chrome browser, during installation. (Will we be seeing a Bing product bundle soon?)
• While Skype has made some top level management changes over the past few months, they appear, with a few minor exceptions, to have kept their operating staff, whether on the developer side or marketing side.This brings an experience base that is critical to meeting Tony’s goals in a timely manner.

And some questions:

• Will we see a Skype for BlackBerry? Can Microsoft leverage its relationship with RIM to resolve this issue? (This has been a most requested feature on one LinkedIn forum discussing what users want to see on the Playbook.)
• How will Skype now encourage third party application development? Will there be support for using web-based tools meeting the IETF’s RTCWeb initiative? What is the road map for SkypeKit?
• Will we see Skype Online numbers for Canada?
• And, in the longer term, will Skype pass the “AmberMac Test”?
• Can Microsoft become as ubiquitously associated with leadership in real time communications as they have been in the evolution of desktop operating systems?

About thirty years ago I worked for a company that had developed Magnetic Resonance technology that was evolving from chemical analysis applications into the medical imaging field. This company initially attempted a partnership with GE who were the leading medical imaging company of the day, especially with CT scanners but were just dipping their toes into learning magnetic resonance technology. However, my employer of the day did not have the financial or other resources required to jump from a business selling $100K to $500K systems to a research market into a business selling $3 million systems into a medical market (with all its regulatory implications). In the end GE simply acquired the company’s magnetic resonance division and has now become a leader in the MRI market. I see a similar opportunity here for the combination of Skype’s technology resources with Microsoft’s financial and business resources along with their market reach.

One final comment: over the past five and a half years I personally have come to meet many Skype employees. Their common thread and over riding motivation was their participation in an initiative that was revolutionizing real time communications on a world class scale. It has been a pleasure to work with them across several projects. Let’s hope they can continue to thrive under the Microsoft umbrella; they are a key resource to the success Tony envisions. Congratulations are due to all the members of the Skype team that made this transaction possible.

It will be an interesting ride. Can they execute? What will happen with the user experience? Will it drive a significant return on a $8.5 billion investment?

What’s your take? What are the opportunities and what are additional questions beyond the list above? Look forward to your comments.

Just as I finished writing this post, Dan York put up his views over at Disruptive Telephony:

My interest was not only in the “across all devices”, which has been a large part of Skype’s goal for some time… but also in the use of “real-time communications”. For a while that was a phrase that only the more technical-minded folks used, but now increasingly “real-time communications” seems to be the phrase of choice for many. I, for one, applaud the usage.

Read Dan’s post for another perspective on the acquisition.

Update: Phil Wolff at Skype Journal: Skype: New owners, new customers, new channels.

Full disclosure: The author is an involuntary participant in the Canada Pension Plan – a beneficiary of this acquisition. Now CPPIB is looking at investing in a retail chain called “99 cents” stores.

Earlier this week I reported an update on the status of the EU Commission approval, indicating that it appeared there would be no conditions placed on Microsoft’s acquisition of Skype. Today the final ruling came out with details behind the EU decision.

In their decision it is interesting to note they split out the consumer and enterprise markets:

In the area of consumer communications, the investigation found that the parties’ activities mainly overlap for video communications, where Microsoft is active through its Windows Live Messenger. However, the Commission considers that there are no competition concerns in this growing market where numerous players, including Google, are present.

For enterprise communications, the investigation confirmed that Skype has a limited market presence for these products and does not compete directly with Microsoft’s enterprise communication product Lync, which is used mostly by large enterprises.

As regards conglomerate effects, the Commission assessed the possibility for Microsoft (i) to degrade Skype’s interoperability with competing services and/or (ii) to tie its own products, in particular its leading Windows operating system, with Skype, thereby limiting other players’ ability to compete.

As regards consumer communications services, the Commission found that Microsoft would not have an incentive to degrade Skype’s current interoperability as it is essential for Microsoft that Skype’s services are available on as many platforms as possible in order to maintain and enhance the Skype brand . As regards the risk of tying or bundling, the Commission noted that the vast majority of consumers who acquire a PC with Skype already installed are registered Skype users and that most of them subsequently download a version different from the pre-installed one. Therefore, the proposed transaction will not change the current situation.

As regards enterprise communications services, the Commission found that Skype is currently not an enterprise product, therefore its interoperability is not decisive for competitors and a bundle or a tie between Skype and Microsoft’s products will not be a must have product for enterprises. Furthermore Lync faces competition from other strong players in enterprise communications, such as Cisco.

The Commission also assessed other ways with which Microsoft could leverage Skype’s large consumer base onto the markets for enterprise communications services but it ruled out negative effects on competition in the time frame relevant for the analysis of the transaction.

In other words the commission concluded:

• Skype would degrade its own brand by failing to continue support for the multiple platforms on which it is currently and potentially available as as service
• Skype has  made such significant market penetration that users who would encounter a pre-installed Skype on a PC would probably already have a Skype account and want simply to upgrade to the latest version.
• Skype is not an enterprise product – confirming that, when it comes to the business market, Skype really has been a small business product at best.
• Any attempt to leverage Skype’s consumer base into the enterprise market would not negatively impact competition.

Microsoft General Counsel  and Vice-President Brad Smith has commented:

We’re pleased that the European Commission has approved Microsoft’s acquisition of Skype. This is an important milestone, as we’ve now received clearance from both the United States and the European Union. We look forward to completing soon the final steps needed to close the acquisition, bringing together the employees of Microsoft and Skype, and creating new opportunities for people to communicate and collaborate around the world.

Bottom line: Microsoft is free to do as it wishes in terms of the integration of Skype into their business. At this point it’s really up to Microsoft, working with its Skype business unit, to determine how to successfully leverage Skype into Microsoft’s enterprise (and consumer) offerings to achieve the increased market adoption that justifies an $8.5B purchase price.

Related articles

• European Union approves Microsoft’s Skype deal (winrumors.com)

According to a report this evening out of Brussels at Financial Times’ FT.com, reporter Alex Barker states that Microsoft is to win approval of its acquisition of Skype with no conditions. No timing for an official announcement was given.

Basically the approval ignored “legacy” bundling complaints and Microsoft won its argument that the market has changed sufficiently where those old arguments no longer apply especially in consideration of Skype’s support for multiple platforms. (Maybe they also earned something by the market failure of their browserless Windows ruling a few years ago.)

The report goes on to state what Microsoft had promised, in terms of ongoing availability on other platforms, and deals with interoperability issues. Read the full Financial Times article linked above for details (a pay wall may apply).

Now we can look forward to seeing how Skype gets integrated with Office, especially Outlook and Lync as well as relevant Windows Live offerings.

Paul Korzeniowski at Redmond Channel Partner has offered his view on What the Acquisition Means for Microsoft’s UC Future and its potential impact on Windows Phone as well as the challenges that lay ahead for integration into Microsoft UC products. He outlines how Microsoft has failed to succeed in the real time communications space in spite of three different offerings over time and puts the issue as the complexity of working with these offerings: “The products involve a variety of components that need to be integrated, but often the IT staff only understands small pieces rather than the complete puzzle.”

In comparison he lauds Skype’s ease of deployment but also outlines that it will take some time to integrate what has been essentially a consumer product into Microsoft’s product lines. While he raises the security flag again, I guess he has not heard that security companies such as Check Point are using Skype heavily. Maybe Microsoft needs to recommend installation of CheckPoint products to totally clear the air.

He goes on to discuss the role Skype can bring to Microsoft through its participation across the mobile space and closes by mentioning the biggest asset Microsoft receives is Skype’s user base of over 170 million users monthly averaging out at 65 million users daily.

The bottom line challenge for Steve Ballmer and his team is to ensure Microsoft justifies through execution its $8.5B investment which will rely heavily on leveraging Skype into its product lines. We are seeing some sense of direction with respect to revenue generation with the inclusion of advertising in recent Skype client releases – it’s becoming either pay for some level of service or watch our ads.

The most interesting questions beyond integration into Microsoft offerings will be:

• the level to which Skype can encourage innovation through its developer partner programs and
• how Skype, under Microsoft with its huge enterprise customer base, leverages its way into the business market.

The next year will be interesting to observe Skype’s evolution as Microsoft’s first independent business unit and whether it can deliver on its claims in its application to the EU Competition Commission.

Final question: In a year’s time will Skype pass the “AmberMac” test?

So the iPhone announcements today blew away the speculators. And we’ll have to listen to another year of pundits speculating about the iPhone 5. So here’s something else to speculate about;we should have some direction as to where this story is going by the end of the week.

According to the recent information the European Union’s next statement on the Microsoft acquisition of Skype should appear in three days (Oct. 7). However, in the interim there are a couple of points to note:

• An Italian VoIP provider has filed an objection requesting that the purchase be blocked unless Skype is “removed from Microsoft’s ubiquitous Windows Office platform”. To which I can only say, “Huh?” While there was in the past an email toolbar linking Skype information into Outlook, that quietly went away a couple of years ago. (I had been a beta tester for it.) I have yet to find or install any Office product with Skype embedded. Somehow it’s tough to remove what is not there!
• Skype Journal’s Phil Wolff has written a long tome on Should the US have OK’d Microsoft’s purchase of Skype? Should the EU? He outlines many considerations that become overwhelming in the resulting comprehensiveness. It provides a range of where there might be competitors who could be threatened, but many are either fairly strong in their own niche or have markets with some level of feature set where Skype integration would actually be of benefit.

One can get embedded into discussing feature set, interoperability, protocol and other technology logistics; it can get to be a very complex and time demanding process. The bottom line should be a simple ruling that takes into consideration the need for there to be the ability:

• for any third party to have access for embedding Skype features (via, say, an expanded SkypeKit) to strengthen their own offerings through real time communications enhancements as well as
• for the various Microsoft offerings (such as Outlook) to have access to an API set for third parties to integrate their offerings, including real time communications services, into a Microsoft offering – via industry standard protocols. But developers, such as former Skype employee Peter Kalmstrom, have already demonstrated how to leverage Microsoft offerings successfully through innovative add-ons and services.

Bottom line is that coming out of this review should be an environment that encourages innovation, whether by Skype or third party services, delivering offerings that have the potential to actually achieve market adoption and success. Microsoft has to recover its $8.5B investment; developers need to see a fair and profitable opportunity for identifying and addressing market niches that can build on Microsoft platforms.

In passing on a review the U.S.’s regulatory authorities did not see any issues. The EU seems to figure out some way to be more aggressive, especially when it comes to Microsoft; some other issues are discussed in a previous post here. It will be interesting to see what comes out from the EU Competition Commissioners on Friday.

Today Skype announced the release of Skype for Android 2.5 with support for 14 additional phones, taking the total of supported phones to 41. Notably, Skype for Android is now supporting five Motorola phones, the popular Samsung Galaxy Tab 10.1 and LG Optimus models, including the LG Optimus Black that has a Skype edition for TELUS customers. A complete list of supported phones can be found on the Android Market (click on the “more” button).

Update Dec. 16, 2011: Skype released Skype for Android 2.6 which provides hotfixes for several issues reported by users.

Other notable features include:

• Enhanced video on several models: including switching between landscape and portrait mode and zooming in through a simple double tap on the screen; video calling enabled by default on more devices
• Improved support for Bluetooth headsets
• Revised user interface for message history
• Support for joining a (multi-party?) call
• Support for editing and deleting messages
• Advertising for non-paying subscribers, continuing a program previously announced for Skype for Mac 5.4, and Skype for iPhone/iPad 3.5.

In the direction towards a more common user interface across all Skype clients Skype’s Garage Blog elaborates on the “Revised user interface for message history”:

The main notable changes to the message history views are that we are now grouping the instant messages, calls, etc. all together. Skype 2.5 for Android works now exactly the same as your Skype on Windows or Mac already.

The Skype Garage Blog post also provides more details on the new features as well as a list of known issues. The one issue not mentioned is whether Skype is taking any initiative to improve the impact on battery life.

One caveat: for several of the models make sure you have the latest version of Android (2.2 or 2.3, as appropriate).

This release continues the recent stream of Skype upgrades where we are seeing enhanced video calling support and a move towards more consistency in the user interface across platforms, such as support for editing and removing messages.  But one cannot overlook the move towards more revenue generation through either advertising or encouraging purchase of Skype credit or a Skype calling plan subscription. Certainly the latter is helping to build value for the post-Microsoft acquisition days.

(Note there is a hotfilx upgrade for this version; more information here.)

Yesterday afternoon, for the first time, I was able to make a Skype-to-Skype call from my car using Skype for iPhone over a 3G/HSPA+ wireless service and the Bluetooth connection to my car audio system. I held a (legal) hands-free conversation with a contact in the U.K.; in fact at one point, while waiting to make a turn, I was able to use the rear-facing video camera for a few seconds where he saw, referring to the video quality, a “very fit” lady running down the sidewalk and across the intersection.

Yesterday Skype released new versions of Skype for iOS devices, namely Skype for iPhone and Skype for iPad. The main features promoted by Skype include anti-shake technology and the Bluetooth connectivity mentioned above. However, I also found a couple of additional changes:

• restoration of the ability to access the dial pad during a Skype-to-Skype call; this is necessary to work with PBX’s that can be called via a Skype for business SkypeID using Skype Connect.
• a new call management bar on Skype for iPhone that is more consistent with the call management bar on Skype for iPad and Skype for Mac.

While most of these are self-explanatory, the anti-shake technology probably is best explained through this video; basically it compensates for small movements of your hand while showing a video via the rear camera on the device.

http://www.youtube.com/watch?v=dLKE58eA-S8

As mentioned above I made a Skype-to-Skype call from my car to a U.K.-based contact where:

• the Bluetooth connection using my car’s audio system for the speaker/mic worked quite well
• there was crystal clear audio due to the use of Skype’s SILK codec technology
• the other party confirmed that the anti-shake technology appeared to be working for the ~30 seconds when I could use the rear webcam while managing hands-free driving (that’s the law in Ontario)
• one could access the dial pad

Three screen shots to show how the new call management bar works:

• Clicking on the blue “+” icon, second from the right, provides access to the dialpad and chat session
• Selecting the dial pad brings up the dial pad shown
• Clicking on the video camera icon allows selection of the front- or rear-facing camera on the device.
• Clicking on the center icon, initial image above, allows selection of the device’s internal speaker/mic or an external earpiece/mic connected via the 3.5mm audio jack

Four other points to note:

• The new version delivers advertising if you don’t have Skype credit or a Skype Calling Plan subscription; this expands a policy launched with the release of Skype for Mac 5.4 two weeks ago.
• A security issue on Skype for iPhone has been addressed; probably the one reported last week.
• This upgrade supports iPhone 3G, iPhone 3GS and iPhone 4, 2nd and 3rd Generation iPod Touch, and both iPad and iPad 2, running iOS 4.
• During an earlier call to the same Contact between his iPhone and my Skype for Windows, the video transmitted from my PC started out at VGA resolution but dropped down to 160 x 120 resolution, probably to match more closely the 192 x 144 resolution that the iPhone delivers for video calling.

Bottom line: Skype for iPhone 3.5 addresses some user feedback issues, especially when it comes to the Bluetooth connectivity as well as a couple of housekeeping issues that had arisen with previous versions. The new Call Management bar also provides more consistency although it would also be useful if one could see call connection quality information, such as has appeared in previous versions.

It’s not quite at the point where I could say “Call James B. on Skype” whereas, using my BlackBerry, I can say “Call James B. mobile” in a totally hands free way. I had to park the car to launch the call via the
Skype client; for most of the call the front-facing camera showed the retracted windshield shades. It would also certainly be useful to have a mounting bracket above the dashboard to hold the iPhone such that the rear camera can show where you are going during a video call; otherwise one needs a passenger to hold the phone safely.

Note: A few hours after the release was announced Skype came out with a notification that there were a couple of issues with respect to loading Skype contacts – which I’ve noticed – and showing Skype credit. While Skype has provided a work around involving uninstalling and reinstalling the application, we should be expecting a hotfix release in the next couple of days to address these issues. Update – 28/9 evening – the hotfix update that resolves the contact sync issue is now available.