Voice on the Web » Andy Abramson

Alec Saunders Joins RIM

Jim Courtney — Tue, 27 Sep 2011 12:42:09 +0000

Alec checks out the original iPad while attending eComm 2010

About 20 years ago I was managing the Canadian operation of Quarterdeck, publisher of the very popular QEMM-386 memory manager for DOS. During that period Microsoft decided they needed to upgrade DOS to include some memory management features in DOS 5 and later DOS 6. Somehow the genius developer team at Quarterdeck always managed to stay a couple of versions ahead of the DOS feature set. But the experience also led me to meet Microsoft’s Canadian Product Manager for DOS, Alec Saunders. We jousted about our products but I also came to appreciate Alec as a respected player at Microsoft.

When I went to Los Angeles a year or two later to work with Quarterdeck on a corporate restructuring I needed to have meetings at Microsoft Redmond (don’t ask about the business reason – cause I forgot). I learned that Alec had moved to Redmond. One call to him ensured that I had the meetings I needed; we continued to cross paths as he moved on to become the first product manager for Internet Explorer (yes, Quarterdeck had a great browser – with tabs – but did not understand the Internet culture of beta testing), and we would always meet up at Comdex, amongst other shows.

Alec returned to Canada in 2000 where he worked with a successful Real Time Operating System company, called QNX – a company about which I had learned in the mid-80’s during my frequent trips to Ottawa. A year later he took up a business development position with a telecom equipment vendor. About four years later we met up again as he was considering the launch of a start-up that eventually became known as iotum with a conferencing product called CalliFlower. You will find many posts here about the evolution of CalliFlower. For about a year Alec hosted his daily SquawkBox conference call when a crowd of up to 20 to 30 enthusiasts would talk about IP-communications industry issues, meet several of the players as featured guests and contribute to the development of Calliflower’s feature set. During this time Alec gained experience developing applications for Facebook and the iPhone.

What I really came to appreciate is not only how well Alec understood the technology behind today’s IP-based communications and wireless technology but also about how well he understood the business and personal communications issues related to building a strong developer program for a platform. The combination of his Microsoft, QNX, Versatel and iotum start-up experience made him a frequent reference point for not only obtaining background on issues but also, often, my posts.

A few months ago I learned that Alec had commenced some consulting with RIM covering business development activities involving developer relations. I also was certainly having my own questions about how RIM was proceeding not only with their BlackBerry partners but also with the Playbook. It was pretty obvious that RIM was struggling on that front, especially when it came to developer relations. Alec could bring a lot to the table for RIM.

Towards the end of July I made a Skype call to Alec only to learn that he was on his first day on the job as Vice-President, Developer Relations for RIM. His initial focus is on the PlayBook, working with the QNX team in his home city of Ottawa (but probably now a frequent commuter to RIM Headquarters in Waterloo). Andy’s post yesterday made this public; the only previous external clues that something had changed were his occasional inquiries on Twitter and Facebook about how to use a MacBook Pro; it can now be disclosed why these queries were arising.

If RIM continues to hire experienced professionals of Alec’s caliber, it only improves RIM’s chances for success built around the QNX platform. Having been aware of QNX for over 25 years I learned that they have the most robust, crash-free operating system available – you can fly an airplane with it. It has several features that support true multitasking on multi-core processor platforms. QNX has a most compelling customer base as exemplified here. The challenge here is to leverage QNX’s key features and RIM’s historical enterprise pedigree to bring about a Playbook that takes off in directions that the iPad cannot touch. Suffice it to say there is a path to follow and it does not rely on being a direct competitor to the iPad. Is this a hint?.

Gizmodo defines Alec’s challenge here:

BlackBerry App World is like the sad broken-down amusement park your dad takes you to because when he was a kid it was the only place that had a log flume. You got behind with devs. You got beat. Get them back. Microsoft’s doing it—slowly, surely—with Windows Phone, and you can too. It’s going to take money, sure, but considering how many wasted investments you’ve been willing to make recently you might as well splurge on something useful.

You’ve got time before QNX makes its phone debut. Use that time to line up as many major devs as you can. Don’t just make BlackBerry a QWERTY storefront for Android apps. We have that already. It’s called Droid.

Bottom line: A strong developer relations program is only one critical component to RIM’s success. While Alec brings a lot to the table, RIM’s biggest challenge is to quickly build a disruptive platform that can become a market leader in its own niche.

Skype Group Video: It’s About the “Natural” Audio!

Jim Courtney — Tue, 16 Aug 2011 18:41:11 +0000

After a beta period of several months last fall, Skype launched Group Video Calling on Skype for Windows at CES 2011 as one element of its Skype Premium service. Group Video Calling on the Mac became available with the release of Skype for Mac 5.0. Over the past few weeks I have had the opportunity to host a weekly group video call for an Internet Marketing mentoring group in which I participate.

This was a group that had been using a hosted push-to-talk conferencing where only the speaker’s video would appear – using Adobe’s Flash Video. It provided a tedious (and not terribly robust) way to share voice and video but ….

being push-to-talk, only one person could talk at any given time; any ad hoc conversation had to be via the text chat window.
there were pregnant pauses while the video started for each participant who wanted to talk; it was not what one would call “totally interactive” or spontaneous ad hoc conversation.
the chat window was only available during a session; if you lost the connection and reconnected, you only picked up new chat messages and lost any previous content, such as URL’s and email addresses.
voice quality was acceptable but definitely compromised by the audio technology employed
the service itself often could not stay connected for the duration of a conferencing session.

Once we were about to cancel one of our weekly sessions due to hosting issues when we realized there were fewer than ten participants on the scheduled call. Instinctively I fired up Skype Group Video Chat; immediately we had:

seven or eight participants on a call, each with live video (provided s/he had a webcam)
a fully interactive meeting experience where one could start talking “spontaneously”
- due to the nature of the group and a “business meeting” discipline, no moderator was needed
participants were on both Windows and Mac platforms
a persistent and archived chat session is available
while some participants used headsets, others used microphones and their PC speakers – but there were no echo issues from any party – echo cancellation played a key role in the audio quality experience
voice quality is “as if we were all sitting around a table in the same room”
- due to Skype’s superwideband SILK audio technology

But don’t take my word for it when it comes to the audio performance. During an interview with the mentoring group’s leader, Brad Gosse, about how he uses Skype to build and support his business, I asked him about his impression of Skype Group Video:

http://www.youtube.com/watch?v=XYOhIYERp2Y

Any participant with Skype for Mac 5.3 could actually share his/her desktop to a Skype Group Video call; hopefully this feature will soon be supported in an upcoming release of Skype 5.x for Windows.

One other “robustness” feature I noticed during a recent call. For whatever reason, one of the participant’s Windows PC crashed during the call; Skype for Windows gave me, as the host, “transparent” notice of an Internet Connection issue, the participant’s video disappeared from the call screen, yet the called carried on without interruption. However, once he rebooted his PC and opened Skype he was presented with an opportunity to rejoin the call, did so and reappeared in the call with no disruption of the call itself. (As shown in the image, participants who have left a call are prioritized in the Add to Call screen.)

Bottom line: you probably have to participate in a Skype Group Video call to fully appreciate the participant audio and video experience. Suffice it to say all the participants’ feedback from these calls relates to the value of the discussion content – the video and audio technology has become totally transparent to the real purpose of the session.

A couple of related posts:

Andy Abramson talks about Video Calling In The Living Room where he intends to use Group Video calls for his weekly staff meetings:

Virtual face to face meetings that will replace the faceless conference call. With video calling in the living room, or the conference room available for so little money, you have to wonder why people are waiting?

Michael Graves points out why he continues to use headsets at his home office to avoid introducing “room tone” into his audio: Can You Hear Me Now? Headset vs Speakerphone In The Home Office

Note that Skype continues to include unlimited calls to North American destinations with a Skype Premium subscription.

Facebook Video Chat – Powered by Skype: First Impressions (voiceontheweb.biz)

Qik Video Connect – Adding Support for Android

Jim Courtney — Wed, 27 Apr 2011 17:57:48 +0000

A month ago I wrote about the launch of Qik Video Connect, a video streaming and video mail service, on any iOS platform with a camera (iPad 2, iPhone 3GS and 4, later iPod touches with a camera).

Yesterday Skype announced that Qik Video Connect not only has an upgrade for the iOS versions but also is now supported on Android (2.1 – 2.3.3) smartphones. Totally interoperable so that live video chat can occur between iPhones and Android phones.

One more point buried near the end of the blog post. Normally the premium service Qik Video Connect Plus is $2.99 on the iPhone and Android app store, but for the remainder of this week, it is free. However, Qik will provide a new revenue stream for Skype effective June 1, 2011 for the video mail service. Charges have not been stated.

As Andy Abramson stated, “At some point I expect the Skype platform and Qik platform to converge as the overlap in video is becoming more and more obvious.”

Qik Bridges the Android/iPhone Gap With Cross-Platform Video Chat (wired.com)
Qik Video Connect Finally Lets Android And iOS Users Video Chat With Each Other (androidpolice.com)
Qik Opens Its Video Chat to (Almost) All Android Users (gigaom.com)

Skype for Mac 5: Returning to Ecstasy – Step 2 – The Conversation Pane

Jim Courtney — Tue, 12 Apr 2011 10:39:52 +0000

For over a year the author has been a keen user of Skype for Windows 5 as a Skype client that has simplicity, yet flexibility. It’s easy to manage contacts, follow conversations, handle video calls as well as archive and search conversation history. Yet, with the release of Skype for Mac 5, there has been a “Skype for Mac 5” fever outbreak on the Internet due to its lack of consistency with these features. Bottom line is that users are confused and, in many cases have gone back to Skype for Mac 2.8. On the other hand the Skype for Mac team says they are listening.

In the previous post in this series, Skype for Mac 5: Returning to Ecstasy – Step 1 – Consistency, after pointing out how widely Skype for Windows 5 has been accepted, I went on to discuss some consistency issues including the use of the left Contacts pane. It is primarily used for managing Contacts and selecting a Contact or Group with whom the user wants launch or monitor conversation activity, whether chat, voice or video. One key recommendation here was that, in Skype for Mac 5, not only individual Contacts but also Contact Groups should be managed in this pane.

This post focuses on the right Conversation pane which, for the most part, manages and, as appropriate, archives content associated with the user’s conversations such as chat text, call detail records and file transfer information. During Skype for Windows 5.x voice and video conversations it also displays, in the upper part of the pane, not only other party’s Skype profile graphic or video associated with the call participants but also user “controls” to manage how the call proceeds:

a Call Bar beneath the image allows the user to manage the call activity, such as adding people, bringing up a dial pad, opening a chat window, sharing a desktop or file and, via the Call Quality Information tool, monitor associated hardware and Internet connection conditions. This latter tool has been discussed previously with a recommendation to adopt all the features of this call bar in Skype for Mac 5. Also note that, from the CallBar, there is an obvious icon from which you can open a chat window below the video image.
during a video call you can select whether you want to continue to view the video within the Conversation pane (with an option to zoom in on the image), in a separate “pop-out” window or Full Screen. There is also an option to capture a snapshot.

Recommendations for the Conversation Pane

Use the right pane solely for conversations; move all the Contact management activity, especially Contact Groups, to the left Contact pane.
Invoke all the features of the Skype for Windows call bar, including the Call Quality Information tool; this has been a most useful tool during calls in ensuring that all the audio and video hardware is working during (or prior to) a call.
Include the larger blue Chat icon, not a barely visible down arrow to open the chat window.
Invoke the Snapshot/Zoom/Full screen/Pop-out feature bar. When in an HD video call with Full Screen Skype is approaching a telepresence effect that will be even more useful with newer (HD) webcams that can pick up an entire small board or meeting room.
Invoke these changes while leaving available the existing View options to have a small Call Control bar that remains visible while in other Mac desktops and to have a list of contacts online. Useful options but they should be “Mac” enhancements to the feature set of Skype for Windows 5.
As with Skype for Windows 5, invoke a “Home” screen for viewing some conversation history information and manage the User’s Skype profile.
I’m neutral on whether to invoke Facebook; occasionally I find it useful.
Keep the indicator on the left of the panel for expanding the video image to the full width of the Skype window.

Bottom Line: Users are not only looking to have all the primary Contact, Calling and Conversation features available across Windows and Mac (and potentially Linux) platforms but they are most comfortable when there is consistency between the User Interfaces. In some cases there is a feature that is currently available in Skype for Mac 5 (such as viewing Full Screen) but it’s the User Interface triggering “button” or icon that should have a base level of uniformity across all platforms.

One may say that most users have only one platform but I am in a family where some members run on Windows while others run on the Mac. Also during cross platform calls it is features such as the Call Quality Info or Sharing icon that I ask the other party to use or seek out when they are having difficulty with, say, their hardware or features such as screen sharing.

Skype for Mac 5 – From Ecstasy to Agony

Jim Courtney — Mon, 04 Apr 2011 13:21:35 +0000

For Mac devotees worldwide there has developed a significant appreciation of Skype for Mac 2.8 with it’s drawers, separate chat conversations windows, contact management algorithms and other features that present a “Mac-like” user interface. It provided both ease-of-use and flexibility across the spectrum of new to advanced users. However, there have also been cries for incorporating many features that are now available in Skype for Windows 5.x, especially Group Video calling. A tall task, to say the least. Recall Dan York’s rant on Skype’s fragmented product strategy, for instance.

Over the past couple of months Skype has released two versions of Skype for Mac 5.x (5.0 and 5.1) to some acclaim (yes, I have heard some complements) but also to much dismay. On the positive side it supports Group Video Calling (but now requiring a subscription). It took a couple of weeks after the Skype for Mac 5.1 release but last week the Internet erupted with an outbreak of Skype for Mac 5.x fever as several bloggers passionately displayed the rash by posting their concerns, apprehensions and aspirations. From my recent interviews with Skype personnel, their blogs and my own experience using both Skype for Windows 5.x and Skype for Mac 5.x I find the following:

It appears that the goal for Skype for Mac 5.x is to have an interface similar to the revamped user interface first launched as Skype for Windows 4.x and now at its most recent version, Skype for Windows 5.2. At the same time the goal was to catch up to the feature set of Skype for Windows 5.x.
From my CES interview with Neil Stevens, Skype’s VP Consumer Products, I learned that Neil wants to see new versions with incremental feature enhancements released every two to three months. Certainly the activity since the beginning of 2011 has lived up to that goal with two new releases of both Skype for Windows and Skype for Mac in that time frame.
In the announcing the contest for “Styling” a theme the Skype for Mac 5.x conversation pane there is a concluding paragraph stating:
- Finally, a note to those of you who have commented on the user interface as a whole. We’re in the process of developing some changes which will offer a lot more flexibility in the interface, and they’re on the roadmap for a (near) future version. Stay tuned.
In response to last week’s deluge of blog posts Skype’s Rick Osterloh has posted “An Update on Skype for Mac” where he attempts to explain some of the challenges of building Skype for Mac 5. He states:
- However, there’s still plenty of work for us to do and we know that not all of you prefer 5.X. To that end, we’ve taken a comprehensive look at the feedback from the last couple of months and identified two broad patterns. I’ve captured a distillation of some of the issues we have heard.
In the meantime Skype has restored the ready availability of Skype for Mac 2.8 on their website as an option.

Skype for Mac 5 Fever – The Outbreak

Lukas Mathis, Ignore the Code, in his post Skype 5 for Mac, finds an upgraded Skype Contact asking: “What the hell happened to Skype? Is this some kind of a joke?” He goes on to point out the simplicity in Skype for Mac 2.8 of the basic contact window, how chats were displayed and how he uses the Mac multi-desktop feature to manage multiple concurrent chat sessions. He continues by outlining his issues with Skype for Mac 5: complexity, rigidness and non-essential features. All valid points including a demonstration of how a more advanced user took advantage of the UI’s flexibility in 2.8.
Jaanus Kase, a former Skype employee who has since acquired a degree in Human-Computer Interaction at Carnegie Mellon University, in his post, Skype 5 for Mac: spatial arrangement and inconsistent single-window design, discusses the the “Floating and Disappearing Dial Pad” as an example. [My comment: here is one feature that needs to be addressed by looking at how the dial pad is handled in Skype for Windows 5 (I’ll have more to say later on this one.)]
Hudson Barton, a Skype for Mac enthusiast who tracks Skype users online every 15 minutes, uncovers a previous Skype for Mac UI design proposal from an agency that Skype worked with (don’t know if they still do). He points out in his post, How To Fix Skype-for-Mac 5.x :
- ….. the features of Skype-for-Windows work consistently and as one might anticipate, with lists of contacts, conversations calls on the left and the content of those items on the right. The Mac interface, by contrast, is all mixed up. {Editor’s bold} Things pop up in unexpected locations and in formats that are both strange and unusable. Some of the features are too buggy to use. Others are annoying, or meaningless, or simply dead, and several things that were admired in 2.8 have gone missing.
and offers some suggestions for fixing Skype for Mac 5.
Phil Wolff at Skype Journal, in Months pass, and fury over Skype 5 for Mac still boils, provides one perspective on “How did this happen” and points out that “Design Is Hard”:
- How do you hold fast to your core Skypiness, to what made people love you, and support new features for new markets, new use cases, new business models? Your backlogs overflow. The pressure is intense. Heck, I add to my Skype wishlist daily so I can only imagine what your iceboxes look like.
Andy Abramson at VoIP Watch speculates on how this all may have evolved in Skype Has Another Set of Outages Yesterday.

Skype for Mac 5 – The Anti-Biotic

From these posts and conversations in the general course of my work I get the feeling that I am one of the few users who has experienced both Skype for Windows 5 and Skype for Mac 5 on an almost daily basis. I am also involved with a network of business contacts who simply use Skype — they don’t care about the underlying technology – and just want it to work but again I hear that “What the hell happened to Skype?” line from those who use a Mac.

Just over a year ago I acquired a MacBook Pro and quickly learned first hand about the features that made Skype for Mac 2.8 attractive to its user base. And then I realized that some of the basic precepts behind Skype for Windows 4 and 5 had some consistency with how Skype for Mac 2.8 worked, especially when it came to handling contacts and conversations. At that point I realized how some of these features were inherent to Skype for Windows 4.x and have become very comfortable with the Skype for Windows 4 and 5 overall format while benefiting from its new features:

The two panes clearly separate Contact Management and Conversations
There is a “Compact View” option to have a separate window for Contact management and multiple windows for individual conversations (with chat text, call detail notes and file transfer records) in addition to the “Default View” with one overall user interface window and two panes. (Note: don’t go running to Compact View in Skype for Mac 5 – that has totally different consequences)
Skype for Windows 5.x has evolved with new UI features that make using Skype even easier (for example I have commented on two nifty new Skype for Window 5.2 here and here – the latter addresses one aspect of how the dial pad works).

Over the course of this week I will be putting up a series of additional posts outlining in more detail what I see as needed for Skype for Mac to come close to the convenience, feature set and ease-of-use found in Skype for Windows 5.2.

Bottom line: the Skype for Mac team has lots of work outstanding to address the challenge of not only having the feature set but also ease-of-use of Skype for Windows 5 while also taking advantage of some potential features that are unique to the Mac. Hopefully my comments can help point out key issues. With over 30 million online concurrently last week and 145+ million active users late last year, there is a significant portion of Skype’s users who count on a positive user experience (18% of this blog’s visitors in 2011 are on a Mac.)

Dan York has some additional comments:

My 3 Main Issues With Skype 5.x For The Mac – And Jim Courtney Summarizes The Skype for Mac 5 Saga

Skype IPO: The Real Communications Business Disruption Adventure Begins

Jim Courtney — Mon, 09 Aug 2010 17:37:10 +0000

When I interviewed Skype CEO Josh Silverman at CES 2010 in January, I had asked about the timing for a Skype IPO. Josh’s response:

“We’ll see. We don’t have a timeline for it. Our focus is to build a really great company. When we’re ready and the markets are ready, we’ll consider an IPO. At some point investors will want an exit, of course, but they’ re really taking a long term point-of-view. This is not a quick flip; this is about building one of the great companies of technology.”

Today “long term” was defined as something between nine and fourteen months. Nine months after being taken private by an investment group lead by Silver Lake, Skype announced, through a blog post by Josh Silverman, they had filed a preliminary prospectus for an IPO. With a road show and other pre-IPO activities we’re probably three to five months from seeing the final transaction happen.

The prospectus makes for interesting read about both Skype’s business model and the communications infrastructure transition wrought by new technologies. Key Skype performance data includes:

2010 Jan-Jun revenues of $406.2MM vs same period 2009 of $324.8MM, an increase of 25.1%
“Adjusted” EBITDA increase by 59.3% from $75.2MM to 115.8MM over the same periods
$37MM in capital expenditures budgeted for 2010 vs $13.5MM spent in 2009

and some interesting user data:

One should really think of “Registered Users” as “Registered Accounts”. Especially with Skype for Business becoming more active, there will be a rise in accounts but lots of reasons for stagnant or dead accounts. (Personally I manage, via Skype Manager, over 25 accounts with about 15 users but really only use two of them for my own ongoing activities. The other users were created for one or more business activities and )

Most interesting are the “connected users” numbers, defined as “average monthly number for the three months ended [on] the date [shown on the x-axis]”. While Skype is showing a current number of 124 million“connected users” for the quarter ended Jun30, 2010 Hudson Barton’s “real users” number – which is more an indication of daily users on line is currently running at about 60 million.

The increase in paying users is the most significant number of interest. The prospectus confirms that SkypeOut represents Skype’s number one source of revenue and this number is the best indicator of how quickly these revenues can grow.

One other interesting metric relates to calling minutes, broken down as”

Communications services billing minutes (SkypeOut minutes): from 5.0B in H1 2009 to 6.4B in H1 2010, a 28% increase somewhat consistent with the revenue increase, and
Skype-to-Skype minutes: from 49.1 billion in H1 2009 to 88.4 billion in H1 2010, a 80% increase confirming that “free” really is the key marketing strategy for increasing Skype users and Skype usage.

Bottom line: Skype continues to grow at double digit rates but they are about to enter a phase where marketing activities and business communications services will become vital to sustaining its growth. Yet, regulatory and competitive issues will also become a significant factor and a real test of how willing governments are able to adapt to technological change as opposed to sustaining cost-inefficient legacy telecommunications operations whose fundamental business models are threatened. For the first time, we’ll be able to view quarterly the business success of Skype as an independent business operation.

There’s lots of other interesting marketing information and financial data in the prospectus but that leaves room for additional posts. And the statements re regulatory issues have the makings of several discussions.

Note that while $100MM has been put out as the amount to be raised, it was apparently only used as a metric to assist with determining SEC filing fees. The actual amount to be raised has yet to be announced.

Skype and Third Party Access: Getting Back to Basics

Jim Courtney — Mon, 12 Jul 2010 22:35:08 +0000

“Fring is not a communications platform, but only a toy or at best a testbed for shiny objects.”

Comment by Hudson Barton on Andy Abramson’s post: Fring Fumbles on Cross Platform Video Chat

In observing the evolution of Skype and third party access to it over the past few years I have often wondered how far Skype would go in allowing third party services to deploy Skype as one communications mode in a multi-service communications offering. Fring and Truphone are two examples. Usually these offerings figure out a way to put up a temporary Skype client on a “gateway” server and then build their own interface to the Skype client on that gateway.

There are issues of scalability, service quality (especially voice and video quality) and the overall user calling experience that could potentially compromise the user’s experience in taking advantage of the resulting Skype connection. It’s one thing to show that technically one can make the relevant voice and video connections but the challenges rise to a significantly higher level when taking into account the overall user experience.

Personally I look for services that allow me to easily find and select a contact, select the calling destination (Skype, Home, Mobile, Office, for example) and then click on either a soft button or the hardware green button and make the connection within a reasonable time (say, less than 30 seconds). I find the multi-service communications offerings to be a bit overbearing and almost too overwhelming for a non-technical business and consumer user.

Today there’s lots of coverage about Fring and its use of Skype (or now lack thereof); Dan York has provided an excellent summary of the various viewpoints in his post: Skype vs. Fring: Is Fring not telling the whole truth?. Very significant is the speed with which Skype’s Vice-President, Legal responded to get their side of the story out; their legal personnel usually have stayed out of the public discussion on any of Skype’s market-related issues.

But getting back to basics, there are three considerations:

Skype is Fundamentally Communications Software: we have heard this many times from Skype CEO Josh Silverman; he repeated and emphasized this during our CES conversation last January. As a result they own the intellectual property rights to their software. But they have been successful largely because they make much of their intellectual property available free – they can afford to do this since the capital overhead for Skype-to-Skype calling is so low. We as users provide the key piece by using Skype on our PC’s or other Skype-embedded hardware devices. On the other hand they need the intellectual property protection not only to defend potential revenues but just as importantly to defend their brand.

Best examples of this include:

Skype video calling – here’s the 1964 AT&T World Fair concept now going out thirty-five years later with no charge for one-to-one video calling and being used on ~35% of Skype calls.
Skype has also made their SILK codec available royalty-free provided the licensee meets performance criteria. As demonstrated with Skype for iPhone over 3G, SILK has the potential to revolutionize voice quality on mobile calling (and I’ll pay one or two dollars per month just to have the superior voice quality after many years of mobile phone calls with somewhat challenging audio quality ). Blabbelon provides an excellent example of incorporating SILK.
Skype mobile on Verizon: here is a software development and licensing agreement that generates sustainable revenue streams for both parties while delivering a significant benefit, namely free calling to Skype contacts worldwide, to Verizon customers when calling from the U.S.
With the success of Skype as a commercial TV production platform, Skype has developed special licensing terms for users of this application.

The bottom line is that all these, including making basic Skype-to-Skype calls using the standard Skype clients, involve some form of license agreement that is being adhered to.

Skype is Ultimately About The User Experience: Skype’s brand focuses well beyond the enabling technology to incorporate the entire user experience. It was ease of installation and use that allowed Skype to be adopted so readily such that over 600 million user accounts have been created with around 100 million active users. Skype’s VP for Mobile, Russ Shaw, re-emphasized this during our conversation at CES. We witness this in the recent launches of Skype mobile on Verizon and Skype for iPhone over 3G. While I can only rely on third party reporting about the former (not being in the U.S.) which has largely been positive, for the latter I simply installed the software, looked up a contact, clicked on the Call button and made this excellent quality call to the U.K. using Skype for iPhone over 3G. Woops, did I mention the quality of the call again? Overall both applications set a higher standard for the user experience.

Skype is Opening Up to Developers: Yes, there has been a rough ride for developers over the past four years. PamConsult, Netralia, InnerPass and OnState have persisted with their offerings and have demonstrated the potential for Skype and third party applications. But the recent launch of SkypeKit beta – in a phased program to ensure control over quality and service level issues as the program evolves – opens up significant opportunities for third party developers. Suffice it to say that I know we can expect not only significant software partner offerings but also some innovative hardware offerings based on SkypeKit. Once again, however, there are licensing guidelines to ensure the integrity of Skype’s brand.

But the bottom line is this: sure Skype reserves the right to generate revenues where they see a significant value-add market opportunity but even with their free offerings they want and need to preserve their brand image. It would appear from Skype’s legal executive’s comments that they have been trying to work out a way to interact with Fring without success; Fring has certainly been around for over three years in one form or another, including attending Skype-sponsored events. As Andy Abramson says:

As we all know there are three sides to every story, but given Fring took the shot first, an old rule of thumb in a legal battle is get the word out first. And Fring did. Now Skype, whose legal minds are based on the West Coast, as well as their platform team and video folks for the most part have gotten in and replied.

We now are starting to get a better handle on how Skype will establish the playing field for third party applications, hardware and services. The evolution of the Fring relationship (or lack thereof) will provide a concrete example of how far Skype will go in allowing third party affiliations.

Full disclosure: yes, I tried Fring several times in the past (when it had Skype access). Simply put, I never found a way to use it comfortably and abandoned it. I have used iSkoot successfully in the past; however, they no longer support current BlackBerry platforms. But all this flurry does generate the background for a future post on what I would look for in a mobile smartphone calling experience.

Re Truphone: I mentioned Truphone at the beginning of this post as another example of a third party service that offers Skype as one communication mode. I’ll have more to say on my Truphone experiences – both favorable and unfavorable in a separate post. At least I find it a reliable backup when I have no other choice for calling.

Skype and Fring Go to War Over VOiP Video Calls (mashable.com)
Who Blocked Who in Skype and Fring Fight? (gigaom.com)
Fring’s mis-use of Skype software was damaging to our brand and reputation (blogs.skype.com)
Skype, Fring throw punches over iPhone hang up (reviews.cnet.com)
Fring removes Skype functionality, then says Skype blocked it (downloadsquad.com)
Update: Fring removes Skype video call support, what is best in the US now? (zdnet.com)
Fring for iPhone now blocked from Skype. (thenextweb.com)
SkypeKit: “Naked” Skype Support Arrives for Hardware-Embedded Skype and PC Applications (voiceontheweb.biz)
Skype for iPhone 2.0 Released: 3G Skype-to-Skype Calling to Require a Fee (voiceontheweb.biz)
Skype on Mobile over 3G: A Skype Video Calling First Experience (voiceontheweb.biz)

Skype over Verizon: Skype Becomes a Marketing Weapon in the Wireless Carrier Arsenal – The Prelude

Jim Courtney — Tue, 16 Feb 2010 17:34:53 +0000

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.

Skype Comes to Blackberry & Android With Verizon Partnership (readwriteweb.com)
Verizon to allow unlimited Skype calling over 3G starting next month (engadget.com)
Coming Real Soon Now: Skype for iPhone over 3G (voiceontheweb.biz)
Traveling in a Bipolar Mobile Mode (voiceontheweb.biz)
Skype: the “Unofficial” Personal Communications Software for the 2010 Winter Olympics? (voiceontheweb.biz)
Skype for Business: An Interview with Skype’s Matt Jordan (voiceontheweb.biz)
History Making Smartphone Skype Call During LeWeb Closing Session (voiceontheweb.biz)

History Making Smartphone Skype Call During LeWeb Closing Session

Jim Courtney — Fri, 11 Dec 2009 00:44:36 +0000

At about 5:30 (GMT+1) this afternoon members of the Skype Public Chat discussion learned that not only was there a new beta version of Skype for Windows 4.2 available for download but also Skype had released its first beta version of Skype for Symbian (for Nokia smartphones).

Shortly afterwards, while listening to the final Gillmor Gang panel session at LeWeb, I downloaded, via the event’s WiFi network, and installed the newly available Skype for Symbian beta onto a Nokia E71 that I use on Spain’s Vodafone for emergency calls during my trips to Spain. As an initial test I then sent out a few initial Skype Chat test messages. While there were some long delays I finally did receive responses to these messages..

I then realized that the LeWeb official blogger sitting next to me had a Nokia smartphone and asked her to install Skype for Symbian on her N96. About five minutes later, as Michael Arrington of TechCrunch fame was chiding Apple for not supporting VoIP over 3G networks, I made a successful Skype-to-Skype call between my E71 and her N96. While this call went across LeWeb’s WiFi network, the irony here is that Skype for Symbian is a complete VoIP client on a mobile smartphone and, according to Skype’s blog post:

Skype for Symbian works over Wifi or 3G data connection. We recommend having a unlimited data plan when using 3G connection.

I followed up with a successful Skype call to Andy Abramson at his hotel in Madrid, Spain where the voice quality was excellent in spite of the event’s background audio of the panel session.

My LeWeb deskmate has a Vodafone Netherlands voice and data plan and will let me know when she returns to Amsterdam this weekend if she can make Skype calls over Vodafone Netherland’s 3G network.

Skype for Symbian beta is claimed to be a “limited” beta; however, it supports:

Free Skype-to-Skype calling
Call phones with Skype credits or subscription
Receive calls on your Online Number
Instant Messaging
Group conversations
File sending and receiving

The important bottom line here is that Skype has finally released a mobile smartphone client that supports both 3G and WiFi from a full VoIP client with no intermediary servers as has been used on the 3 Skypephone over the past two years. Its use over the data plans of wireless carriers will test several aspects of smartphone services:

Will carriers attempt to block VoIP clients’ services that bypass their inherent voice channel?
Will smartphones have sufficient battery life to support a full day’s use of a VoIP client over a 3G network?
How much data would be used during an average day’s use of Skype? (While many carriers claim to offer “unlimited” data plans, there are actually monthly caps of 5GB or more.)
Where does a full Skype client provide an economic advantage over various voice plans, especially when it comes to making calls while roaming?

During my recent trips to Europe I have made heavy use of Skype for iPhone (and sometimes Truphone) over WiFi access points. Given the high charges for data while roaming, Skype for Symbian is still not a service that I would use over a “roaming” 3G network but I would continue to look for WiFi access points in hotels, restaurants and airports to access Skype on the supported phones. However, in my home country I can expect to make Skype calls from anywhere in Rogers 3G coverage areas using their relatively inexpensive data plan at little or no additional cost.

Update: Phil Wolff has more details and some caveats about this initial Skype for Symbian beta version over at Skype Journal.

Skype for iPhone: Now Legally Available for Canadians (voiceontheweb.biz)
Skype Beta Calls on Symbian Phones (gigaom.com)
On iPhone, Apple Still Not Allowing VoIP Calls over 3G (gigaom.com)
AT&T has change of heart about VoIP over 3G for the iPhone (arstechnica.com)

The Skype Spinout Version 2.0

Jim Courtney — Mon, 09 Nov 2009 16:12:42 +0000

So it’s finally resolved. The Skype spinout from eBay will involve Skype’s founders as investors and board members while contributing a cash investment. Skype finally owns the core intellectual property required for Skype to operate at its current cost levels. eBay gets the cash they were looking for but 5% less of the new Skype. Canadians still get to invest $16.75 each through the government operated Canada Pension Plan. Marc Andreesen gets involved with another major Internet play. Mike Volpi and Index Ventures are out of the picture. Lawyers and consultants are probably heftily rewarded for all the litigation activity leading to the final resolution. Incessant speculation on Skype Journal’s Skype 5.x Public Chat about how to get around JoltID’s Global Index software will finally cease (well, maybe).

While I have put links to several posts leading up to the resolution below it has been most interesting to read various bloggers comments on the resolution and the future direction for Skype:

Phil Wolff at Skype Journal sums up the numbers in his post, Sold! The Bullets and values the JoltID intellectual property at $275 million. (Phil gets credit for the graphic above, by the way.)

Om picks the winners and losers on My Thoughts on the Skype Settlement: Winners & Losers Scorecard. He points out the “great spin quote” from Silver Lake as a leftover from the “PR spin” days prior to the transparency that comes with social networking. Come on, guys. We’ve all seen the depositions and emails. As for the future, Om comments:

No Silver Lining?: One person who I totally feel for is Silverman, the current CEO of Skype. He gets to run a company which will have the looming presence of its founders.

Whatever the press spin might say, the new investor group is like a poisoned well. It will be a polarized group, always looking over their shoulders. Silverman is going to need to keep a lot of people happy, and those board meetings with nearly two-dozen people aren’t going to be fun, either. But as Biggie Small once said:

“It’s like the more money we come across, the more problems we see.”

Both Kara Swisher at All Things Digital, in All Is Forgiven: “It’s a Clean Slate,” Says Andreessen About Lawsuit-Mad Skype Co-Founders, and Dan Primack at PEHub, in 5 Skype Questions for Marc Andreessen, interviewed Marc Andreeson of Andreeson Horowitz. The common statement about his relationship with Niklas and Janus:

We have not been in business with them before, so we don’t have any baggage at all. Our view is that they’re two super-creative founders. We’ve known lots of legendary founders, and they are all different and have things that make them unique. We include ourselves in that from past experiences. We view ourselves as a pro-founder firm, so we like the idea of founders being involved. It’s a net positive.

Martin Varsavsky. CEO of FON, a company partially financed by many of the same players in the Skype sale, restricts his comments to his thoughts on the future of Skype – where is Skype vulnerable?, where are its strengths? – in Why it may make sense to buy Skype back. His overriding statement:

Skype is simple. Michael Arrington and all of Silicon Valley may find Google Voice amazing but is the average global citizen ready to use it? Massively use it? You download Skype, you find your friends on Skype, you talk. And, if you don’t find them, you Skype out. And when you talk you can also do video. I LOVE video calls on Skype. I used to use them for people I really cared about, relatives, close friends. Now I even do business calls on video with Skype. It just gives you more of a sense of what is going through the other person´s mind. And Skype is the leader on video quality. So simplicity plus video may be a good way to beat flat plans from telcos and avoid being Tivoed. If the video services can migrate to mobile phones Skype is on to something.

Andy Abramson, in The Skype Suit Is Settled-Now Business Can Get On, comments:

I’m just glad the suit is settled between eBay and Skype. Now a lot of things that have been held back can finally move forward. In many ways the settlement is a good thing. The return of the original founders means disruption will continue, and new ideas will flourish. It also means Skype as a business or brand will now have a chance to prove its worth.

Alec Saunders, in eBay’s big mistake; Why the JoltID license was inevitable, concludes:

The lesson in all this? Deals involving technology licenses and acquisitions are common in business. When acquiring a technology asset, buyers must acquire the necessary control needed in order to protect the business. Either buy, or license in perpetuity, what you need to prosper. Unless your intent is to immediately begin work on a substitute technology, a license for core technology that needs renewal is a sure way to find yourself caught by the short-hairs in a future negotiation.

The bottom line is that Skype is now in a position to focus on building future communications software and services without the distraction of depositions, legal wrangling and media curiosity. Provided he can navigate through a 23-member board with diverse interests and experiences, Josh Silverman can build the real communications software business of providing infrastructure for conversations while having a wealth of technology and business connections available in an advisory role.

Om’s trail:

Skype, Founders Settlement in the Works (Nov. 1)
Further Details Emerge As Skype & Its Founders Close to Settlement (Nov. 3)
Skype Founders Fight Their Way Into the New Skype (Nov. 5)
My Thoughts on the Skype Settlement: Winners & Losers Scorecard (Nov. 6)

Kara Swisher (All Things Digital):

Volpi and Index Ventures Out of Skype Deal, the Lawsuit-Happy Founder Twins In (Nov. 3 with lots of links to related stories)
I Love the Smell of Settlement in the Morning: Skype Founders Set to Get 10 Percent, Option to Buy Three Percent More and Two Board Seats (Nov. 3)
All Is Forgiven: “It’s a Clean Slate,” Says Andreessen About Lawsuit-Mad Skype Co-Founders (Nov. 6)

Skype soap opera ends as founders set to regain stake ahead of $2B sale (dailyfinance.com)
Lessons From the War Over Skype (bits.blogs.nytimes.com)
Skype Cofounders Will Be Part Of Buyout Group; Index Ventures Is Out (paidcontent.org)
Skype Founders Re-Found in Settlement (marketingpilgrim.com)
Skype founders win back share (guardian.co.uk)
Andreessen On Skype: “This Is One Of The Most Important Companies On the Internet.” (techcrunch.com)
eBay’s Skype sale gets go-ahead with settlement (news.cnet.com)
Confirmed: Skype Founders Settle With eBay And Others, Get 14% Stake In Skype, Not 10% (techcrunch.com)
Skype Settlement: Zennström And Friis Have Won It Again (paidcontent.org)
17 Million Canadians Will Have an Interest in Skype’s Success (voiceontheweb.biz)

17 Million Canadians Will Have an Interest in Skype’s Success

Jim Courtney — Wed, 02 Sep 2009 13:03:31 +0000

OK, now I have your attention with a headline different from the “Skype sold for $2.75 billion” headlines so rampant in the blogosphere yesterday….

By now the web has been saturated with stories about yesterday’s announcement of the forthcoming acquisition of a 65% controlling interest in Skype by a consortium of investors, led by SilverLake Management LLC and including a $300MM infusion from the Canada Pension Plan Investment Board. At this point the main story is “old” news but a few comments:

Who is Canada Pension Plan Investment Board?

Since 1965 every employed Canadian contributes a % of their employment income (up to an annual income cap of about $37,000) to the Canada Pension Plan (“CPP”). Between the age of 60 and 65 qualifying Canadians can elect to receive a (taxable) monthly payment from this plan until death along with a “death benefit” to the deceased’s estate. The Canada Pension Plan Investment Board …

… is a professional investment management organization based in Toronto. Our purpose is to invest the assets of the Canada Pension Plan in a way that maximizes returns without undue risk of loss. The CPP Fund is $116.6 billion. Canada’s Chief Actuary estimates that CPP contributions will exceed annual benefits paid through to the end of 2019. Thereafter a portion of the CPP Fund’s investment income would be needed to help pay CPP benefits.

Over 17 million Canadians currently participate in the Canada Pension Plan either as contributors or recipients. So we each effectively have a $16.75 investment in Skype.

And Canada, with its own geographical challenge of servicing a market where 90% of the population lives within 160 km (100 miles) of the 6,000 km (4,000 mile) long Canada-US border, continues its long history of having an interest in communications innovation.

Why was there no Skype-eBay synergy?

Meg Whitman made the same mistake I witnessed at a previous employer where the CEO and Board bought up companies but never got “buy-in” within the acquiring company of any major acquisition that required a rethinking of the overall company business focus and execution.

As a result there were no internal champions within eBay for executing on the stated intentions of the Skype acquisition. And the statements of the day demonstrated that eBay senior executives (and Board) did not understand a basic principle of auctions – there is no role for “conversational negotiations” during an auction; this is critical to maintaining the integrity of the auction process. You see the goods and make a decision as to whether or not you want them badly enough to pay the final auction price; the auction process itself is the “negotiation” of a price. Bidders have no opportunity (and do not want) to communicate with sellers; the auctioneer (in this case eBay) is simply a neutral third party who moderates the transaction to establish a price.

Why is eBay still an investor?

Back in the spring when a potential IPO was announced, we learned that eBay expected to continue to have a minority interest in Skype. With a $1.9 million cash infusion and a remaining 35% interest, eBay can still hope to recover, over time, the approximately $3+ billion it has to date spent on the Skype investment four years ago. At the same time it allows eBay executives to focus totally on getting their struggling “markets” business back into a growth mode.

With this strategy eBay can assuage Om’s concerns in Skype Sale Nears: Why eBay Shareholders Should Be Mad. As a sequel, once the sale was confirmed, Om states:

So Donahue gets to say that he got the higher valuation of Skype, got rid of a potential legal nightmare and can get any upside that comes with the initial public offering of the stock. Seems like a win-win, but that IPO — don’t count on it. To be honest, this deal makes much more sense compared to all the rumors that were floating around earlier. [My italics]

What are the positives about the acquisition?

#1 – Keeping the current executive management team. In his eighteen months as President of Skype, Josh Silverman has brought a lot of business process and experience into the company with the result that business processes and programs are being built to build sustainable and increasing revenue streams. Two recent examples of this are the availability of the FREETALK Everyman headset designed to improve the user calling experience at a very low cost and yesterday’s launch of Skype for Asterisk. Expect much more activity and announcements along these lines of building a stronger Skype ecosystem during the fall. This momentum can only be sustained with a continuation of the current executive team. Skype needs to focus on execution at this point; it does not need any further high level restructuring activity to distract from execution.

Two statements confirm this is the case:

Josh’s own post, A new chapter, concludes describing “a new group of owners who believe passionately in our mission and in the ability of our team to deliver on it”.
Egon Durban, Managing Director at SilverLake, states: “Josh Silverman has done a strong job leading the company and we look forward to working with Josh and his team to grow the Skype franchise.”

While there are some “technology heavyweights” becoming involved as investors, the real challenge is to build an effective and synergistic relationship between those “heavyweights” (who will probably become board members and/or advisors) and the current management team. This is where corporate culture and value sets, as established at the executive level, can play a strong role in leaving individual managers the freedom to execute on their goals most effectively.

What are the gotcha’s?

Resolution of the patent dispute with JoltID. No deal would have been done without some understanding of the part of the new investors of the outstanding issues and prospects for how this issue can be resolved. On the other hand, with the experience of the various new investors, many heads can be brought into the negotiation of a resolution. My take: this will never reach the High Court trial scheduled for next spring.
Why the $125 million note? My guess: it’s escrow funds to cover costs arising with any litigation issues that may arise in closing the deal. Is a first guestimate of a settlement with JoltiID in the range of $100MM? Can Skype develop a replacement for JoltID’s infrastructure technology so critical to Skype’s business model for under $125MM? Again from Om:

If you think about it, what Donahoe just did was follow the golden rule of business: If you’ve got a problem, make it someone else’s problem. And the problem for the new buyers is that the legal issues of Skype are not going away. Some of my smart friends think that Skype can sidestep these problems by switching to a SIP-based infrastructure, but I won’t hold my breath.

Any SIP-based infrastructure would sharply increase the need for building a massive global infrastructure. It would also mean working with partners (that make Skype devices) to re-configure their products and getting 400 million-plus users to switch to a massive new model. In other words — like skating in the middle of a semi-frozen lake underneath a brightly shining sun.
Employee motivation: what will be the stock option opportunities for employees now that Skype has effectively gone private?
Financial reporting news: by effectively going private, Skype also has no investor reporting obligations. On the other hand if these investors intend to exit via an IPO in a couple of years, they must provide some level of financial reporting. (By being a minority investor, eBay no longer needs to report on its Skype investment any more that it does on its craigslist investment.)

What do Canadians want?

Now that 17 million Canadians have an investment in Skype can we expect to get;

Skype Online numbers? Canada’s 911 regulations provide a roadblock. (Note to CRTC – when lightning struck my home’s Rogers and Bell communications lines two weeks ago, for four days Skype was my only landline service.)
Skype for iPhone? Requires resolution of a G729 codec patent issue. (Sorry folks, it’s not a Rogers issue.)
Skype for BlackBerry? Given that Research in Motion has become Canada’s leading technology company.

Bottom Line: With this acquisition Skype is finally free of what Andy Abramson describes as “an extremely conservative, bank-like culture”. Yes, Andy, “Skype is about the democratization of voice”; I would extend this to say that “Skype is about the democratization of conversations – whether voice, chat and video”. I certainly look forward to innovation and a much stronger Skype ecosystem as a result of this change of ownership.

Other posts of note:

Omar El Akkad provides a great summary overview in today’s Globe and Mail: EBay hangs up on Skype Strategy.
Globe and Mail Report on Business: What is Skype and Why is it important?
Om Malik on GigaOm: Skype Sold for $2.75 Billion
Andy Abramson at VoIP Watch: (after the announcement) Skype Sold, JoltID Suit Still Remains In Place As of Now; (adding to speculation prior to the announcement) Is Skype in Play?
Update Sept. 4: Dan York, on returning from IT Expo adds his comments in Onward the disruption – Skype’s sale to private investors is a great step; includes Phil Wolff’s Skype Journal graphic showing the ownership post-acquisition based on Om’s reported numbers.

And previous Voice On The Web Posts;

Skype sold: it’s all about risk mitigation. (saunderslog.com)
EBay’s Statement Announcing Skype Deal (blogs.wsj.com)
The Skype sale: Hot Buzz and No Response (skypejournal.com)
Skype – eBay: Passive Separation (voiceontheweb.biz)
Stealthing Skype into Larger Businesses (voiceontheweb.biz)

Is WiFi Becoming the Unregulated Stealth Carrier of the Future?

Jim Courtney — Sat, 25 Jul 2009 19:49:49 +0000

On a recent trip to Spain, where I turned off my BlackBerry Bold’s and iPhone’s mobile carrier network connection except when really required, I was able to use WiFi connections at my various hotels quite effectively to keep up with my “data” activities on these devices. (Except in a situation mentioned below I used Skype on my PC for voice calls.) But there were two situations I encountered during this trip which really hit home the message that WiFi is becoming as important as mobile carrier offerings for wireless smartphone communications:

In one instance, two Canadians, who had stealthed Skype for iPhone onto their iPhones, used a Spanish hotel’s WiFi service to make Skype voice calls between each other, almost as if their iPhones were “walkie-talkies” while on the hotel’s grounds. No roaming charges for these calls.
In another case, I spent one night in a hotel room, in a recently renovated 8th century building, that had no landline. But it had a WiFi service available; I used Truphone on my iPhone to make a couple of voice calls. (The price of staying “legal” in Canada is not to have Skype for iPhone installed.)

The trip, combined with my WiFi experience during a March vacation trip to South Carolina, significantly reinforced my belief that WiFi is becoming the potential “stealth” carrier in the smartphone communications business. But what does that portend for the future?

Friend Andy Abramson, in a post Rumored New Apple iPod Touch Will Be Huge for VoIP, Multimedia, has pointed to the rumors of a new iPod Touch that will include a camera, a built-in microphone and 64GB of memory:

This is awesome news for the likes of Skype and client Truphone and will likely start a flood of “me too” applications from the likes of Cablevision who operates a WiFi hot zone in the New York area, Clearwire and Comcast who are chasing customers in the Portland area with WiMax and elsewhere as the WiFi capability of the iPod touch means its a mobile phone without the mobile phone bill and contract connected to it, something Jeff Belk, the former Senior VP of Strategy at Qualcomm discussed in Unstrung in February of this year.

And where does he see the disruptive uptake?

…. Within two key categories:

1) Pre-teens who need a phone but can’t afford a contract

2) Travelers who don’t need to be “always on” but want to stay in touch cost effectively.

Who benefits from this? Anyone with a travel router to sell, including Apple. Toss a travel router in your bag, and stay in a hotel with wired broadband to your room, and logging on is a snap.

As pointed out in the introduction to this post, I think I was already well into Andy’s category 2 during my Spain trip. Alec Saunders, in Will the new iPod Touch unleash VoWiFi? I’ll wait and see, sees WiFi as a “backup” to 3G network but pipes into the road warrior discussion with:

Travelling, however, is a different story. As Andy notes, you can talk for free on WiFi when you’re travelling, versus whatever the outrageous roaming rate that your carrier might charge. Savvy travelers use products like Truphone and Skype to avoid roaming charges.

Bottom line: users will continue to look for the combination of access and cost that serves their immediate need. While in Canada, I never run over 1GB of data on my BlackBerry Bold and have a reasonable cost voice subscription for voice calls; thus my mobile carrier costs are not a particular concern. But when I leave Canada, I will look to use any wireless service that avoids the last bastion of excessively high mobile calling costs: roaming charges.

Rumors New iPod Touch Won’t Be Huge For Teens, VoIP (phoneboy.com)
Truphone Improves WiFi Calling on iPod Touch (cultofmac.com)
Skype for iPhone: The Response and Coverage (voiceontheweb.biz)
Accessing Skype on the iPhone and BlackBerry (voiceontheweb.biz)
Canadian Experience with Skype Access and Boingo WiFi (voiceontheweb.biz)
Skype Without a Personal Computer (voiceontheweb.biz)
WiFi: The Real Threat to the Mobile Carriers (voiceontheweb.biz)
Skype 101 for Carriers: A “Voice On The Web Primer” (voiceontheweb.biz)

Skype for SIP vs Skype for Asterisk: IfByPhone’s Irv Shapiro Nails It!

Jim Courtney — Mon, 30 Mar 2009 12:33:30 +0000

Following a link from Dan York’s update to his post outlining technical details of Skype for SIP, I found a link to this post from IfByPhone’s Irv Shapiro: Why Skype for Asterisk is more important than Skype for SIP.

First, Irv has done perhaps the best articulation yet differentiating Skype for Asterisk from Skype for SIP:

Skype for Asterisk, which is still in closed beta, is a true Asterisk channel driver. This allows Asterisk based solutions to make, receive and transfer Skype calls. A significant capability of the SFA solution is its support for terminating a call to a Skype user name, for example a PC based user of the Skype client.

Skype for SIP is a very different animal. This service provides VOIP trunk support for existing SIP based PBX systems, which may include Asterisk. Unlike SFA where calls may be placed to any Skype user, SFS calls may only be terminated to PSTN end points.

Irv goes on to provide his view on how this plays in the Voice/Telco 2.0 marketplace. Then he provides an example of where he sees the benefit of SFA for hosted services:

From our perspective as a cloud telephony company, providing hosted telephone applications, SFA is much more interesting. While either service would allow us to provide IVR services to Skype users, the SFA Asterisk channel driver architecture allows us to terminate calls into call centers with no PSTN transport. Each call center Agent would just utilize a headset connected to a computer running the traditional Skype application. Customers calls would be able to originate from either a PSTN device or a Skype client, then route through the Ifbyphone IVR infrastructure and terminate to a call center via Skype’s computer to computer transport. This has the potential to change the cost structure associated with supporting call centers. A Skype based call center would not require a PBX or for even any centralized telephony components. The call center agents could be virtually located anywhere in the world on high quality Internet connections.

Keep in mind that calls terminated on Skype, as demonstrated on the 3 Skypehone service, have no associated termination charges. Long time Skype-based call center provider OnState has already demonstrated this business model; their hosted OnState Call Center service eliminates the need for a call center PBX. While a (prospective) customer can call in via several modes (Skype Online number, DID numbers, 800 numbers, Skype or click-to-call from a website), all the calls are terminated on Skype via their agent client.

Andy Abramson at VoIP Watch has, in a reverse manner, demonstrated this cost advantage also in his post, All Google Voice Needs Is a Little More SIP and Skype’s Game Changes, where he points out that, if Skype for SIP did terminate calls on a Skype client (i.e. – supported SIP—>Skype), then one could terminate Google Voice calls at a Skype client. But, as I have commented on that post and included in Skype for SIP: Sorting Through the Issues, Skype for SIP supports three types of connections and “SIP—>Skype” is not one of them.

Irv demonstrates that Skype for Asterisk has some interesting potential; it’s simply going to require more creative innovation that goes beyond simply making call connections through a SIP interface. It’s a matter of invoking Alec Saunders Voice 2.0 Manifesto which points out that the value lies in the applications.

eComm 2009: Final WrapUp and Thoughts

Jim Courtney — Mon, 09 Mar 2009 10:19:48 +0000

A few final notes on eComm 2009.

First, conference organizer Lee Dryburgh and the Comunicano team need to be commended and thanked.

With the termination of the eTel conference two years ago, Lee took it upon himself to organize an Emerging Communications conference that would serve to keep a broad audience of communications specialists and evangelists updated on topics that demonstrated the benefits of IP-based communications. Lee did this at his own personal risk; in fact, I believe he took a bit of a loss last year. While he passed break-even this year with a 20% increase in registrations at a new venue, I don’t think his surplus was anything that could come close to appropriately rewarding the time and effort he has put into this event.

Andy Abramson’s Comunicano team provided marketing communications support at no charge to Lee. Many of his team members provided support at the conference; many of his clients made presentations (iotum, Voxbone, Global IP Solutions, Mobivox, Fonolo, IfByPhone). These presentations either outlined an evolving technology or were case studies demonstrating Voice 2.0 in action; none could have been considered as being close to “commercials”. And therein lies the value of eComm; it is an educational and networking forum.

About three months ago Lee, who lives in Europe, sent an email to the eComm Facebook group members asking for suggestions for a Bay Area charity to whom he would present a donation covering 10% of any surplus. I had submitted Shelter Network, providing housing support services for distressed families in Silicon Valley, as a candidate; a few days later Lee sent me an email saying he wanted to support Shelter Network. On Thursday, Amy Wright, a Shelter Network manager, accepted a check for $2,000, a number which Lee had, in the interim, guaranteed as a minimum donation.

Check out Duncan Davidson’s entire eComm 2009 Flickr photostream; the photo above is included.

Lee will continue to post information about content availability on the eCommConf Twitter feed.

Mr. Mashup, Thomas Howe, Executes on His Passion

Jim Courtney — Wed, 04 Mar 2009 05:54:59 +0000

Thomas Howe has long been noted for his expertise in developing “Communications Enhanced Business Processes” (“CEBP”). Fundamentally this involves embedding communications facilitation into a legacy business process such as to reduce operating overheads and/or increase employee productivity. From many of the examples I have seen, I would call it eliminating the “intrinsically mundane” from any requirements for human intervention or participation at a given stage in a business process.

Enriched with his unique sense of humor Thomas has spent the past three years evangelizing CEBP through consulting contracts, speaking at seminars and forums and his personal weblog. Today, Jaduka, a provider of business process optimization through “blending real-time communications into critical workflows”, announced that Thomas has been appointed as CEO of Jaduka. Through this appointment Thomas gets to execute on his passion by seeing his vision implemented across a wide range of enterprises of all sizes.

In a Calliflower conference call this morning Thomas provided more details about where he sees Jaduka heading:

“My focus will be on helping our enterprise software partners and customers employ communications to improve efficiency, employee productivity and customer experience. With an API accessed by companies a million times daily and a platform with 1 billion user accounts, Jaduka is well positioned to serve both the $250 billion BPO and $350 billion Telco 2.0 marketplaces.”

Jaduka is focused on embedding voice into existing enterprise applications; they are NOT a provider of voice applications (see Voxeo for these)
the Jaduka API is already called upon over one million times per day demonstrating that it is a solid, tested, robust service
Jaduka has solved the problem of scalability; this is perhaps Jaduka’s leading differentiation from any competitors
Jaduka is looking to launch a new service that will make it radically easy to integrate voice into current enterprise applications
Jaduka focuses its marketing efforts on enterprise developers (and not telephony or voice developers); they look to partner opportunities with enterprise software vendors such as Oracle and SAP as well as system integrators.

Thomas was another of Andy Abramson’s “draft picks” for leading change in the conversation and communications space. From my own personal experience interacting with Thomas over the past eighteen months, Jaduka has a winner at the top who can now deliver cost savings and productivity enhancements to many, many enterprises in these economically challenging times.

Howe goes to Jaduka (saunderslog.com)

Truphone Proposes to Eliminate “Roaming Bill Shock”

Jim Courtney — Wed, 18 Feb 2009 06:30:00 +0000

Whenever I travel to the U.S. I am careful with usage of my BlackBerry Bold for voice calls; there’s a $0.95 per minute roaming charge for any use of it on the AT&T or T-Mobile network even before any long distance charges are considered. Calls back to Toronto from California will result in a total charge of $1.75 per minute. And, at $6.00/MB for data usage, I try to maximize my data activity via WiFi access points in hotel rooms, airports and conference press rooms. And, when I go to Mexico or Europe I look for any opportunity to make voice calls over Skype and access data services over WiFi; in fact, in Mexico, one is advised to turn off the BlackBerry. Roaming charges will easily clean out your wallet.

Recently a Los Angeles Times reporter was referred to me for more information about how he could avoid “roaming charges billing shock” in the future. He had just received a $400 roaming charge billing for using his iPhone over the Rogers network during a weekend trip to Vancouver, Canada.

At one of Andy Abramson’s famous Blogger dinners, held during a recent conference, roaming charges were identified as the number one cost issue and arbitrage opportunity existing in the wireless services market today.

Today Truphone, who has continuously demonstrated innovation in low cost wireless calling, announced their forthcoming Truphone Local Anywhere service at Mobile World Congress. From the press release:

The introduction of Truphone’s multi-country, single-SIM service will change the current experience of people with an international lifestyle. Their mobile experience is currently characterized by frustration, brought on by constantly having to juggle multiple SIM cards and mobile phones in order to minimize their mobile costs.

In an interview with Truphone CEO Geraldine Wilson, she highlighted four key benefits of this service. On a single handset a Truphone Local Anywhere subscriber can:

have a local number whenever travelling in a supported country
make calls anywhere in the territory of participating carriers at “local” rates
make international calls at reduced costs
eliminate or minimize ”roaming” charges at most destinations

But there is also a benefit to people calling to a Truphone Local Anywhere subscriber. Personal and business calls to the subscriber can be made via the subscriber’s “local” number for the location from which the call is being placed.

Other issues:

All numbers will be “mobile” numbers, capable of supporting SMS messaging and data activity
The default callerID seen by the called party will be the call destination’s “Local” number but the displayed callerID can be managed to display other numbers available to the subscriber
calls to other Truphone Local Anywhere customers will have the lowest calling rates

Geraldine was quite specific in stating that the target market includes mobile professionals, travel industry employees, expatriate workers who need a “local” number in both their home country and “on the job”, and international students. According to Geraldine, this “road warrior” market encompasses 300 million today, making over 700 million trips per year.

Why an announcement now at Mobile World Congress? While Truphone has already signed some carrier and service provider agreements for this program, they are seeking out additional carrier and MVNO partners to build out a worldwide network.

As for the infrastructure behind this service:

the customer will receive one SIM that supports service providers in all countries
it is a scalable, plug-and-play solution
a customer will be able to add another carrier or service provider to the SIM over-the-air
Truphone is seeking out non-traditional distribution channels
it will have full data compatibility

Bottom Line: if Truphone can pull off a sufficient number of service provider relationships worldwide, Truphone Local Anywhere will have the same friction-free impact for travellers’ mobile communications activities as the introduction of the Euro provided to European travelers, eliminating the need to stop by an “exchange counter” when arriving in every country.

Update: Jon Arnold: Truphone Launches Local Anywhere Service

Truphone Cuts Roaming Costs for International Jet Setters (gigaom.com)
Truphone offers local calling anywhere (news.cnet.com)

Skype at CES 2009, Part II: An Overview and Observations

Jim Courtney — Tue, 13 Jan 2009 19:24:01 +0000

There’s a “new sheriff in town” when it come to running Skype; CES 2009 was a “coming out” event for the new executive team.

CES 2009 provided an opportunity to catch up personally with many of the vendors we have covered in Skype Journal including Skype, Truphone, SlingMedia, Philips and Research in Motion (BlackBerry). I also had a chance to attend a most informative afternoon session of Jeff Pulver’s Social Media Jungle event. Unfortunately Palm closed their suite after only two days of CES; thus, I missed an opportunity to learn more about the Palm Pre on Saturday. As Palm had just been awarded a CES “Best of Show” award, that was a “Huh?” moment when there was only a security guard at the suite’s door.. I also wanted to catch iPevo and Nokia but did not have time to get to their booths.

With respect to Skype we had three activities: the Skype press conference, an interview with new COO Scott Durchslag and Skype’s first reception event Friday evening. It was our first opportunity to observe the new Skype executive team in action. While I will be providing some more detailed posts, here are a few observations:

For the first time, a senior C-level Skype executive personally acknowledged Skype Journal’s participation as a playing a significant role in the Skype ecosystem. Scott thanked us for our loyalty to Skype through all the challenges of the past two years. (That does not mean we’ll always be cheerleaders; it’s important that we maintain a skeptical and critical viewpoint within the context of the overall IP-based communications space.)

While we have had co-operation in the past, usually via Skype’s public relations agency, from many Skype employees at an operating level, it’s important for the media to be able to communicate regularly and openly with those at the C-level who are providing overall direction and developing high level strategy. Josh has initiated such openness through his blogging and interviews; now we are seeing it on a person-to-person basis..

On the other hand many times, last week in both the press conference and our discussions, Scott acknowledged the existence of several previous controversial issues, such as technical support, platform development, the role of partners and internal management structure issues as requiring attention by the new management team. The newly recruited management team will be introducing a new level of experience and maturity to address these issues; execution over the next few months now becomes critical.
One future post will cover Skype’s new operating and management structure focused on products and geographical markets.
Another will cover Skype’s overall focus as a software platform developer and the standards being set for these developments. Within this context I’ll provide my perspective on what is meant by “liquid communications”.
We’ll soon have a follow up post about our discussion with Scott of what Skype’s new executive team learned from the TOM-Skype privacy breach last fall and how it became a bonding exercise within Skype as well as establishing some new operating parameters to avoid a repeat.
Skype is NOT shoving its partners under the bus. The new executive team is determining what innovation Skype will drive and what innovation they can expect partners to drive. Andy Abramson articulates his perspective on the issue:

Most of all, Skype is not sitting back. The are pushing the envelope, but at the same time sending mixed messages externally to partners and developers. But that too will change. Some recent hires have brought maturity to the table.

We learned the answer to “Will There Be a Skype Client on the iPhone?”
Finally, for the first time since I have been writing about Skype, we can see some well-articulated high level vision for where Skype is heading, where they need to focus and how they want to play in the real time communications market space at a strategic level.

Looking forward to writing about the evolution of Skype as it grows from a $500MM per year operation with 500 employees into a business with a revenue level and valuation that finally justifies eBay’s initial investment in Skype.

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Truphone Breaks the Carrier Barrier

Jim Courtney — Mon, 15 Dec 2008 14:58:09 +0000

Truphone‘s announcements last week overcame a significant carrier resistance barrier to using VoIP-enabled services to reduce international calling costs. The key secret here was that it required the combination of Truphone’s iPhone and iPod Touch applications along with the Apple Application program that leverages Apple’s established carrier relationships to break this barrier.On Friday I was finally able to complete provisioning of Truphone on my iPhone. It happened at this time for three reasons:

The association of my original Truphone number and account with a Nokia N95 handset and the “416″ number I eventually transferred to my iPhone whose acquisition as an upgrade on my carrier account minimize my iPhone costs over the term of the three year contract.
The original iPhone application only supported outbound calling; I would have lost the Truphone inbound calling feature I had on the N95.
For this reason I left Truphone on my N95 (using a deactivated SIM and my home office WiFi access point) pending the arrival of a Truphone for iPhone application and service that supported both inbound and outbound calling.

Recall also that the original Truphone for iPhone only allowed calls over WiFi access points with no ability to pass them through the underlying 3G wireless carrier. Truphone’s two announcements last week addressed three issues:

Truphone for iPhone now supports both inbound and outbound calling
Truphone added the Truphone Anywhere service such that Truphone for iPhone calls could be made over the underlying 3G carrier as well as over WiFi.
Truphone for iPod Touch (2nd generation) invoked the Truphone Anywhere service allowing calls to be made from iPod Touch to any PSTN number.

Over the course of the past week it has become possible to make low cost international calls from any iPhone or iPod Touch mobile device worldwide. Truphone has demonstrated how the underlying service provider can can eliminate the need to have a multitude of individual “carrier-service provider agreements” with the 79 carriers currently offering the iPhone worldwide. Yet carriers still benefit through increased local minutes used to provide the connection to/from Truphone calls. To quote from Ted Wallingford’s “Heartburn Chuckle: The telecom industry can blame itself”:

The Carriers

The carriers are firms like AT&T, Windstream, Verizon, BT, and so on. Their obsession with the billing unit (the almighty minute) has made them helpless to see the possibilities of a software-rich, application-based global ecosystem. Consequently, the most successful apps to arrive on the carriers’ networks, the ones most embraced by the public, overwhelmingly have one purpose: to steal billable minutes from the carriers. The innovation disappeared and the scrappy new players in the market, the ones with the power to transform the public’s thinking about telecom, instead got stuck doing the same old thing the big telecoms do to put bread on the table: bill minutes. [Author's italics]

For instance, Canadians can now use Truphone for iPhone as their international calling service over Rogers without the need to subscribe to one of Rogers international calling plans but perhaps with an increase in their monthly “local” voice plan minutes. In this case, there is no cost for the actual application and you establish international call credits through a Truphone account. When Rogers’ iPhone customers travel to Europe, calling back to North America can be handled at a much lower cost through hotel, cafe and airport WiFi services, such as Boingo or iPass. (True roaming calls from outside the “home country” over a 3G carrier will still be expensive; Andy’s post linked here suggests RebelSIM provides a solution.)

It was the second part of this announcement that is most significant. Previously VoIP-enabled services, such as 3′s Skypephone, required working with individual carriers to establish the appropriate business and operating agreements. However, in one move, Truphone was able to leverage Apple’s relationships with 79 carriers worldwide to bring about commitment free international calling. Apple, through its Application Program has become a disintermediator, facilitating a business model disruption, once again.

As for the iPhone for iPod Touch application; this is why the most successful carriers need to offer both wireless and broadband Internet services. Calls via WiFi access points, including one’s broadband Internet service, go over the broadband connection and reduce carriers’ needs to build out the capital-intensive wireless network infrastructure, including backhaul.

In a future post, once I’ve had some more Truphone for iPhone experience, I’ll do a comparison of services available over Skype and over Truphone. But one obvious difference: Truphone is about voice conversations only; Skype is about voice and text conversations.

Tags: Truphone, iPhone, carriers, voip, Skypephone, iSkoot, international calling, service providers, WiFi

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Voxeo Grows Again: Voice Objects Acquisition Adds a Third Layer of Developer Resources

Jim Courtney — Tue, 09 Dec 2008 16:57:34 +0000

Over the past ten years Orlando, FL-based Voxeo Corporation has grown to become one of the largest hosts of enterprise Interactive Voice Response (“IVR”) applications, building not only tools for developing and hosting these applications but also a track record of twenty profitable quarters as a self-financed private company.

Historically Voxeo has provided, at no charge, resources for C++/Java and Web Developers to produce customized IVR applications that are then hosted at their network operations center. Their developer community has grown to over 31,000 participants. As their expertise has grown they have also developed their licensable Prophecy SIP platform for those enterprises that wish to host their own services using Voxeo’s tools.

Today Voxeo announced an expansion their development expertise, technology base and user community through the acquisition of Germany-based Voice Objects.

While acquiring ownership of Voice Objects’ technology assets, Voxeo CEO Jonathan Taylor emphasized in an interview with me yesterday that Voxeo’s first reason for making an acquisition is to acquire the expertise and professionalism of the employees. Contrary to the popular perception of making an acquisition and focusing on the technology assets, Voxeo looks for team players who can fit into Voxeo’s culture and then look at the technology synergies.

As a bonus the Voice Objects acquisition brings to the table as customers a new layer of developers; namely those who routinely develop “self-service” applications for service providers and enterprises as a full time occupation. Jonathan described Voxeo’s current developer resources as having two layers: API-based telephony libraries favored by C++/Java “low level” developers and XML-based telephony languages using Voxeo’s proprietary but simplified VoiceXML as well as other XML standards for web developers. The acquisition of Voice Ojbects introduces a higher level of object-based telephony tools, employing drag-and-drop and visual rapid development techniques.

Whereas Voxeo’s legacy tools facilitated people-to-people connections, Voice Ojbects’ toolkits facilitate the development of “self-service” applications where no human is involved in delivering or provisioning enterprise or carrier-based services. It is multimodal in that not only is voice involved but also SMS messaging and video can be brought into the application where appropriate. For example, T-Mobile Czech can easily program changes into their self-service applications reducing development times by an order of magnitude while dynamically addressing market needs.

Taylor described Voice Objects’ toolkits as having three major components: a rich development environment, unified self-service middleware – that connects customer information within an enterprise with customers who desire access to this information via voice, SMS or other modes – and, finally, extensive analytics. The analytics component gathers real customer usage data and provides justification for making application modifications based on user experiences as well as changing local market conditions. To quote Jonathan: “Business owners don’t want to build a bad experience; however, it is challenging and difficult to build applications that work well for customers.”

In closing our interview, Taylor mentioned that Voxeo, recognizing that the best way to recruit talent is through acquisitions of this nature, will be looking at three or four similar acquisitions in 2009 building up a team of “great people who understand the industry well”.

The acquisition of Voice Objects will not change Voxeo’s business model of making their developer resources available at no charge while charging either for hosting of applications or for platform licenses sold to enterprises that wish to host their own applications.

It appears that Voxeo continues to set a benchmark for operating a sustainably profitable business in the Voice 2.0 world. On a broader scale Jonathan has provided an overview of the various levels of developer segmentation and classes of tools available on the market today for creating Voice 2.0 applications.

Truphone for iPod Touch: Accessing Skype Contacts and Social Media

Jim Courtney — Fri, 05 Dec 2008 02:55:12 +0000

Over the past year one of the leading IP-based voice service offerings for low cost international calling from wireless smartphones has been Truphone whose service primarily runs over WiFi access points; Their more recently launched Truphone Anywhere service provides an option for making calls via 3G networks using a combination of the data channel and voice channel in a manner similar to iSkoot’s architecture where the caller’s VoIP client resides on the service provider’s server(s). When the Apple App store launched last summer Truphone launched an iPhone 3G application that once again offers the ability to make outbound calls over a WiFi access point.

One more user experience consideration: a key user friendly Truphone feature is its complete Address Book integration; when using Truphone on a N95 8GB I can simply go to my standard address book (synchronized with my Outlook Contacts), select a contact, select a phone number for the contact, press the green “Call” button and initiate a call over Truphone.

So it was not a total surprise, with this experience, that today Truphone announced a new Truphone application for the second generation iPod Touch, which supports a headset with a microphone. But it’s not simply about making low cost phone calls. Support for chat and social networking has also been included. From the press release:

Truphone for iPod Touch will become a one-stop-shop social hub with the following features coming soon:

Calling to landlines (PSTN) at low cost (simply set yourself up with a Truphone account);

Instant messaging to Skype and MSN (free);

Calling to Skype users (free);

Calling to MSN users (free);

Check and set facilities for Twitter (free);

Check and set facilities for Facebook (free).

Contrary to what many in the media are saying, the client that resides on the iPod Touch is a thin client, not a VoIP client. This client supplies a Truphone server with the information required to open and set up a VoIP client on the server which, in turn, completes the call via a VoIP connection.

What can we envision from this announcement for future releases of Truphone for Nokia, BlackBerry, iPhone 3G and Windows Mobile devices? Beyond the calling and SMS features currently available in their respective Truphone clients I expect we’ll be seeing:

Truphone access to Skype IM and calls to Skype contacts, as well as to Microsoft Live contacts
Facebook access, including possibly the ability to import Facebook contacts into your phone address book
Following Twitter messages

In addition, Truphone is a Voxbone iNum partner; initially Truphone for iPod Touch users will be assigned an iNum “883″ country code number. I have also recently observed use of iNum “883″ numbers on iotum’s Calliflower conferencing service and at Mobivox. Using Skype today, I confirmed that placing a Skype call to an iNum “883″ number results in a SkypeOut call with the appropriate charges.

Looks like we’re about to see some interesting innovation coming from Truphone over the next few months.

Andy Abramson at VoIP Watch talks about some of the broader implications of the technology behind this announcement.

Update: Pat Phelan does not think an iPod Touch is a phone device; it’s not simply a case of “because you can do it”.

Tags: Truphone, Skype, iPod Touch, iNum

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