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

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

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

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

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

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

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

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

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

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

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

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

and concludes with…….

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

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

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

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Ok so I’m the last to write about Google’s announcement this morning on its acquisition of Global IP Solutions, a major provider of IP-based communications infrastructure with not only its voice and video codecs but also voice and video engines that mean simply “supply me with an Internet connection, a microphone and a set of speakers” and we’ll handle the conversation on your PC or smartphone.

Combine this acquisition with Google’s experience with Google Talk and Google Video Chat, its acquisition of Grand Central to become Google Voice, of On2 for its video codec (used by Skype amongst others) and of Gizmo, Google now has a full set of the underlying tools required to bring out some interesting communications offerings. Can Google integrate these tools, and overcome the inherent management and organization integration issues, to deliver a coherent and effective communications offering? What will we see as end user offerings? And how will Google work with the competition?

After all four weeks ago I had a demonstration at GIPS of a video call received on an iPad (notice I only said “to”). And, as I reported at the time, they basically affirmed that we should be seeing video calling supported on mobile smartphones before year end. Perhaps with a GIPS mobile video engine. Will this now simply be an Android offering or will their offerings also involve smartphone video calling support for Apple’s iPhone/iPad and, say, RIM’s BlackBerry?

It’s interesting to note that I’m already observing the Skype – Google competition in my GMail window. Hover your cursor over the appropriate location at a sender’s name and I get one of two “click-to-call” options: to converse with a contact using Google Talk/Video or to converse directly with the same contact in Skype voice, chat or video:

Google has long been a customer of GIPS for its voice technology and more recently for its video technology on Android. As have Nortel, Cisco (Webex), Communigate (one of the world’s largest suppliers of enterprise email services), Yahoo, IBM/Lotus and many others for both its voice and video technology. It will make for an interesting world of co-opetition.

Other bloggers have made some interesting points:

Thomas Howe, Voyces.com in Tick, Tock, Core, Edge implies that, with the pendulum swinging from the core to the edge, IP-communications infrastructure is going to be supported primarily by two players, Skype and Google:

More important, though, is what these battle lines say about the other players. Which is to say, these guys aren’t even on the battlefield. If fellow Cape Codder David Isenberg is right, and we are in the era of the dumb network, then anyone not-Skype and not-Google is not in the running. Although I agree, appreciate and applaud Orange’s work with their core (in particular, the API program), where are they in this battle? Where is AT&T? Now, doesn’t Verizon’s deal with Skype seem much smarter? To me, it does.

Voxeo’s Dan York, in Google buys GIPS for $68 million – to take on Skype? Apple? Microsoft? gives a short course in IP Communications 101 to explain Google’s motives for this acquisition by pointing out where the real battleground lies:

The issue is that while the control channel is increasingly around the open standard of SIP, which anyone can implement, the “codecs” used in sending media from one endpoint to another have long been a proprietary battleground, particularly with regard to wideband (or “HD audio” as some call it). Yes, there have been and are standards, but usually there have been intellectual property or licensing issues. Now, there is work within the IETF to create a standard wideband codec (and as I wrote earlier, Skype is involved with this effort) but that may take some time and the outcome is not known right now.

But there’s one aspect to this acquisition that can tend to get overlooked – cross licensing. When I worked in the NMR spectroscopy industry during its early evolution in the 1970’s, the two major players (Varian and Bruker) would be filing and acquiring patents and then suing each other. But the final outcome was that both players set up cross licensing arrangements such that the entire NMR spectrometer market benefited by always being able to benefit from the best of both companies’ innovation. And it all subsequently contributed to the rise of Magnetic Resonance imaging that plays such an important role in today’s medical imaging space across six or seven vendors. Will we see Google and Skype cross-licensing their technologies so that overall IP-based communications offerings can ultimately provide best-of-breed services to both their customer bases?

Bottom line: What I see emerging is a communications market where each of Google and Skype will continue to bring forth unique communications offerings that may appear somewhat competitive to their respective customers. Recall the final value add is in the customer benefits exposed by the user interface, not the underlying technology. As a result we can expect a world of co-opetition and cross licensing such that customer offerings by either party are not held back by some intellectual property dispute that really relates to technology and infrastructure in which the customer has no interest. In the end its about growing a bigger market for the benefit of all.

Other posts:

• Alec Saunders on Voyces.com: Google Targets Skype
• Alec Saunders on Saunderslog: GIPS acquired by Google. How does Abramson pick them?
• Rich Tehrani on TMCNet: Google Buys GIPS – Here’s Why where he provides a short history of GIPS and then analyzes some interesting reasons behind what may have motivated Google.
• Garrett Smith on Smith on VoIP: Google the service provider

Update: Andy has written Congrats to The Great Team At GIPS – it’s his 18th client who has been acquired and the second acquisition by Google. He has also given me credit for the small role I played in introducing him to GIPS:

And with this acquisition, for me and my agency, Comunicano, the number of companies to “exit” or in this case “get bought” in the last 8 years now has hit 18. Alec Saunders referenced that feat in his very well written post yesterday. GIPS came to my agency and I in the same way the other 17 had. We were asked to work with them. In this case the door opener was trusted friend and colleague, Jim Courtney, who has known Emerick Woods for longer than most dating back to their days at Quarterdeck. Jim always said that Emerick is the consummate professional, and someone who knows how to win. Looks like Jim’s matchmaking ability came through.

Full disclosure: GIPS CEO Emerick Woods was the Vice-President, Internet of Quarterdeck Corporation in the mid-1990’s who became a mentor to the author on several business development projects at Quarterdeck involving partnerships with ISP’s of the time. Over the past 14 years, Emerick, in his capacity as CEO of several startups, which have gone on to be sold, has hired the author at various times for his business development services. The author, however, has no business relationship with Global IP Sound.

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Three weeks ago Skype made available the “Gold” release of Skype 4.2 for Windows. In the interim I have had the opportunity to experience many of its new features, several of which I have found improve the call experience in somewhat subtle but very beneficial ways.

Call Quality Indicator

This is what I have found the most useful new feature; it simply provides quick access to determine the conditions under which a call is being made. Before a call you can check your audio/video setup; click on “Check Settings” to bring up the device bar; click on a device to check that each of the mic, speakers, webcam (only if the Contact has a webcam) and computer speed are appropriately configured for making a call.

During a call you can continue to track call quality in the Call Bar; the network quality indicator on the right will also become active:

Should network connection conditions change the network quality indicator will turn orange or red and the number of bars will reduce. If you get a red exclamation mark you have a serious issue with your setup that most likely needs to be addressed. (The call in this case was to Skype Test Call; thus the gray “video” icon as Skype Test Call does not have a webcam.)

Note also that, at the end of every call, there is an opportunity presented to report on call quality. Responding, especially with less than best quality calls, certainly helps Skype to get a statistical handle on their performance.

But there’s one other unannounced feature associated with the Call Quality Indicator; click on the drop-down arrow to the right of the volume control in the Call Bar and you’ll find a menu that can lead to assistance with call diagnostics.  Select “Call Technical Info” and a separate window will open up with a wide range of diagnostic information including the other party’s SkypeID, codec being used, jitter, packet loss information and, for some calls, the version of Skype being used by the other party. Some of this information has been readily available in previous 3.x versions of Skype; however, in earlier versions of Skype 4.x it always operated in a “flicker” mode which made it difficult to read. Only a portion of the information available is shown here; the “24000” sample rate means the call is taking full advantage of the 12KHz audio bandwidth supported by Skype’s SILK codec.

Skype Access

Skype Access was first introduced on Skype for Mac 2.8; now it’s available in Skype for Windows 4.2. When you enter a WiFi zone supported by Boingo (there are over 100,000 125,000¹ worldwide with the SSID’s shown at this link), a window will pop up indicating that Skype Access is available (simply by having the appropriate client on your laptop). While it’s not exactly the least expensive way to connect to the Internet (including Skype) via a WiFi access point, it does come in handy for those 15 to 30 free minutes during airport stopovers or in “urgent” situations where there is no other alternative.

(Full disclosure: the author has a Boingo account which is available at the same locations as Skype Access as it has proven to be a cost saver at hotels that have the alternative of an expensive daily fee or using Boingo. On the other hand even at these locations, the Skype Access window will pop open.)

From time-to-time Skype has a Skype Access promotion; one is occurring the weekend during which this post was published; the promotion offers free Skype Access from 00:01 GMT Saturday, March 20 to 23:59 GMT Sunday, March 21, 2010 (extended to 23:59 Monday, March 22 in the U.K. to assist travelers stranded by the British Airways labor disruption).

Ready for HD Video

Ready, yes, but we’re not there yet; the HD webcams equipped for this feature will not be available until later this spring. However, I have received some test calls demonstrating that Skype 4.2 for Windows does support HD Video calling using appropriately compliant Skype-certified HD video cameras from FreeTalk and faceVsion. To the right is captured a frame from a test call using a faceVsion camera; below is the call diagnostic information from a recent test call using a prototype FreeTalk webcam – 1280 x 720 is the key parameter indicating HD Video support. (Once again, these webcams will only be available later this spring on the Skype Store). That we are all going to love the experience of these HD Video calls is all I can say at the moment. Note the reference to the H.264 video codec that is embedded in the webcam; the associated video compression is done on the webcam itself to reduce the load on the host PC’s CPU during a call and the associated network bandwidth requirements.

Update: While the FreeTalk webcam call reported above was made Tuesday, March 16, Jason Harris reports on an HD Video call from Andy two days later using the same webcam in Coming Soon: High Quality Skype Video Calls With Everyman HD. (I did not want to embarrass Andy by showing the details of his facial stubble in the one frame that I captured during our call; recall that many actresses were wary of HD video when first introduced as it could show intimate details of facial blemishes. I’m sure the make-up industry has compensated by now.)

Call Transfer: Simply stated, Call Transfer, a popular feature of many Skype 3.x versions, has finally re-appeared in Skype 4.2 for Windows.

Brower Toolbars: Since the release of Skype for Windows 3.0 a Skype Toolbar icon for Firefox was available; concurrently there has also been available a Skype Toolbar for Internet Explorer. Basically it uses a Phone Number Recognition algorithm to locate phone numbers within a web page and Skype-enable them (essentially a Click-to-Call using Skype or SkypeOut). With Skype for Windows 4.2 this feature has finally become stable within Firefox (full disclosure – the author has been an external beta tester for this toolbar). In a subsequent post I’ll discuss how it can also be used to Skype-enable Skype contact names within a web page. Suffice it to say it has become a very handy tool, especially with telephone directory services.

Additional features: The release notes for Skype 4.2 also list several less significant but helpful changes that assist with the user call experience. For instance:

• The video call button remains available even if there is no webcam detected
• Improvements in video quality in low bandwidth conditions
• Improved contact importers, including from GMail, Facebook, Hotmail and Outlook

But it’s still not “perfect”. The Release Notes and Release Notes Document include details of not only improvements and bug fixes but also a list of known issues that the Developer team continues to assess and track down. But there’s one 3.x feature for which I still would like to see support in 4.x – namely Skype Public Chats.

Bottom Line: With three weeks of usage, Skype 4.2 for Windows definitely brings an enhanced user experience, especially with respect to providing diagnostic information to help with call quality issues. Skype Access opens up one more option for road warriors to have Internet access for short sessions at airports or ‘’urgent” situations where no other option is available. And we still have to wait a few weeks for the webcams that will support HD Video support, setting new standards for video calling, but the final outcome will be well worth the wait.

Of course, now that I have a MacBook Pro as my primary laptop, I have joined those asking when the equivalent features (Call Quality Indicator and HD Video calling) will be available in Skype for Mac².

¹Shortly after publishing this post I received my monthly email advising me that Boingo is now supporting 125000 access points worldwide.
² I can continue to use Skype for Windows on my desktop PC or via Windows 7 running as a virtual PC on Parallels for Mac.

Full disclosure: In Store Solutions, producer of the FreeTalk HD Video webcams, has become a client of Denali InterConneXions, publisher of Voice On The Web, building on the author’s previous business development experience with establishing partnerships that can assist with the promotion of a primary vendor’s offerings. A more complete statement will follow shortly.

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At eComm Spring 2009, Skype executive Jonathan Christensen announced that their recently released SILK codec would be available to third parties royalty-free. Two weeks ago at eComm Europe phonefromhere.com’s Tim Panton gave a presentation “Deploying the SILK codec, How and Why” where he discussed two projects where he was involved in embedding Skype’s SILK codec into a voice-enabled service under projects managed by Dean Elwood’s Voxygen product and services deployment company. From the overview for the presentation:

SILK’s royalty free licensing combined with it’s non-TDM heritage allow us to focus on the user and what they have available instead of obsessing about attempting to manage the network.

Last week came a press release announcing the beta release of Blabbelon, the first browser-based voice chat and push-to-talk tool targeted initially at the Internet gaming market.

As communication companies continue to look for new ways to generate revenue with VoIP applications, keep current customers and lure new ones, Blabbelon enters the market and completely changes the rules of the VoIP game. The first browser-based VoIP chat tool using Skype’s SILK super wideband audio codec, as well as one of the first massively multi-user VoIP services, Blabbelon can handle thousands of simultaneous users at a fraction of the cost per user of other traditional services. Blabbelon provides a platform for a wide variety of users such as: gamers securely competing in team-based quests; businesses running 7,000 person global conference calls; or grandparents taunting grandkids over a game of Facebook Scrabble.

I spent some time yesterday in a Blabbelon session with Dean to experience the service in action. Out of this session came the following points:

• Push-to-talk voice sessions comprise a common feature of Internet gaming sessions; however, Blabbelon brings a new level of ease-of-implementation and ease-of-use, with the goal of having a simplicity of adoption similar to what Skype experienced because you simply installed it and started calling and talking.
• In fact, being browser-based means there is no download required. Once a session leader has launched a Blabbelon session s/he simply needs to distribute a URL to other participants in a game to allow them to join the session.
• It’s push-to-talk but there is a hierarchy established to manage who has “talking” rights. The entire experience of having a discussion is very similar to CB Radio or a “direct connect” two-way radio service where, with the simple push of a button, one can speak instantly to a designated team of participants in an activity, such as a construction project.
• Blabbelon sessions can scale up to more than 7,000 users in a low cost business model. In fact their press release talks about its being ideal for online auctions. Is this the style of voice service that Meg Whitman should have acquired for eBay instead of Skype?
• Use of the SILK codec certainly supplies a crystal clear sound while using a minimal amount of bandwidth – very important for gaming sessions that can become very CPU intensive. Again from the press release:
  

  Users can run Blabbelon in their Web browser, while simultaneously using other online applications – with no impact on their overall network performance, since Skype’s SILK codec was designed to use approximately 50 percent less network bandwidth than previously required, while delivering improved richness in audio quality.”

• As for the initial target market:
  

  Blabbelon will initially focus on a core audience of the millions of online gamers and players of Massively Multiplayer Online (MMO) games such as World of Warcraft (WoW). The combination of Blabbelon’s technology and features and the SILK codec provides a perfect tool for this market, which, because of the cooperative nature of games, needs a no-download, high-quality, secure, reliable and scalable voice chat.

More background from the press release:

Blabbelon was created by a team led by CEO Ed Ikeguchi, former co-founder of Medidata Solutions (Nasdaq: MDSO); Dean Elwood, CEO of telecom provider Voxygen Limited and chief technology strategist of Blabbelon; and Rowena Rubio, CMO and former systems analyst.

Available immediately [as a beta offering] from www.blabbelon.com, Blabbelon is hosted by Rackspace, ensuring the highest levels of chat stability, quality, security and reliability. Blabbelon offers 100 percent uptime through Rackspace’s worldwide network and zero downtime guarantees.

Bottom Line: Blabbelon opens new directions for the application of VoIP technology and the SILK codec. It’s not a voice conversation service along the lines of traditional telephony. Yet it brings new ease-of-use and voice quality to a market that has been poorly served by current offerings. Of course listening to Dean on Blabbelon using a FreeTalk Everyman for Skype headset with its inherent support of the SILK codec ensured that the full benefit of the voice quality available from SILK was experienced.

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When Martin Geddes started out his eComm Europe launch keynote talking about real customer pains and how they needed to be addressed from a user interaction viewpoint, I had hope that maybe we would be hearing more about real business cases in the emerging communications world. What we have learned from the subsequent presentations include:

• Carriers and operators are gradually figuring out they need to be in the “Internet pipes” business (as a channel simply for transporting IP packets) OR the service provider business (acting as a retailer providing specific services as basic as email or as complex as multi-currency transaction processing engines). Those that don’t get it will fade away.
• We’re a long way from having LTE accepted, let alone available, as an ultra high speed wireless protocol. The business case, from both a technology and financial perspective, has yet to be made.
• Value add is through “wow” user experiences; value your customer’s time when handling voice communications and the issue of cost goes away.
  • Calliflower detects callerID to eliminate need for PIN numbers
  • Time Warner will auto-confirm that a service person is coming.
  • Voxygen’s “revolutionary callerID” demonstrates a “rich callerID” experience for both the customer and the merchant in completing an online sales transaction.
• The most promising and innovative application: Layar – an “augmented reality” web browser that sets new levels of performance for location-based services; they won the eComm Application award. Available at the Android Market and the iPhone App Store. Watch for Layar to spawn a network of location-based services application developer partners such as Winvolve.
• Small but important facts that came out:
• GIPS Video engine is using the H.264 SVC codec to allow the viewing experience at the end points of a video conference call to reflect the quality of connection at the end points.
• Skype’s SILK codec is the first voice codec that has not evolved from a TDM codec which has implications from an engineering and development viewpoint (noted by Tim Panton of phonefromhere.com in his presentation on deploying the SILK codec in a yet-to-be-announced project).
• Skype’s Sten Tamkivi pointing out that, whereas most carriers will have, on average, 2,000 calling corridors for completing calls internationally, Skype has over 40,000 calling corridors. Very significant as Skype for Business launches its new services. (A calling corridor determines that actual routing of an inter-carrier call from the caller end-point to the terminating end point.)
• Perhaps the most interesting prototype demonstration was Tim Panton’s Google Wave – Skype – Asterisk prototype demonstration. Phil Wolff at Skype Journal calls it a “Cool  Demo”.

But, I’m with Alec Saunders on a key point: we heard lots about the technology, the carrier and financing issues, “neat” applications. But we heard little, if any, about business implementation cases. We need to hear more about:

• • Who is using these offerings?
  • Where have the new paradigms for telecom allowed small businesses to take advantage of what were previously enterprise level services, such as call centers and voice as a service?
  • Where are the business case studies of implementations?

Alec sums it up best in his post, eComm: Time to Change the Station,:

It is, however, time to stop talking about the death of the incumbent. Let’s instead change the conversation – acknowledge that the carrier network is a platform, and that the carrier has a need for an application community, and begin the dialog between network partners and developers about the ability for those operators to help us get to market.

While we’re at it, let’s also change the channel, dial away from the conversation about “mash-ups”, and focus instead on user needs, the user experience of communications, and the economics associated with that user experience.  By focusing on the business value of the services being developed instead of the technology platform, we can all become better able to reach the customer with game changing new communications services.

Make sense?  It’s an idea who’s time has come.

Full disclosure: Why do I have this viewpoint? I have recently completed managing a project that takes advantage of cloud computing and software-as-a-service to develop a website for a vacation home condominium project where the primary hotel renting our units went under and closed due to Mr. Madoff’s impact on the owner’s finances. As a result we, as the condominium owners, had to implement our own reservation management and booking website with services that would have cost over $500,000 fifteen years ago but had an initial cost this  summer under $20,000. We replaced a telephone switchboard, an onsite reservation system and guest registration system with much more flexibility in the entire guest experience from initial reservation to final check-out. We incorporated WordPress, OnState (with Skype as a calling option), InnRoad, YouTube, Google Maps and Twitter.The entire story will be in another post but you can check out the website here.

There must be many similar stories building up these days; eComm needs to find and tell these types of stories. (And, Lee, you have your first submission for eComm America 2010.)

However, to end on a positive note, eComm Europe 2009 was still the learning experience I was looking for. How important was eComm? My own home carrier, Rogers Communications, had two attendees – one of the few carrier companies at this most important industry-altering event.

Acknowledgment and disclosure: The author’s attendance at eComm Europe 2009 was supported by In Store Solutions, vendor of the FreeTalk Everyman Headset for Skype. In Store Solutions provided an Everyman headset to all eComm Europe 2009 attendees. The author provides business development services to In Store Solutions due to his previous experience with distribution channels and partner programs.

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Canadian iPhone and iPod Touch users will be able to celebrate all 9’s day (today is 09-09-09) by participating in Skype conversations from their iPhone. At 12:01 a.m. the Canadian Apple App store will be making Skype for iPhone available.

Breaking news (12:04 a.m. Sept. 9): I have just successfully downloaded Skype for iPhone from the Canadian Apple App store and sent my first chat message to the Skype 5.x Public Chat session.

When Canadians woke up on the March 31 worldwide launch date of Skype for iPhone they learned they could not be amongst the over 6 million iPhone users who have since downloaded Skype for iPhone from Apple App stores worldwide, except, of course, in Canada. A shock to the country where Alexander Graham Bell made the world’s first long distance call to Brantford, Ontario across a six kilometre wire from a nearby telegraph station back in 1876.

The Canadian launch of the Skype for iPhone was delayed while Skype and Apple Canada’s licensing teams worked out “ambiguity” issues related to Skype for iPhone’s use of the G729 codec in Canada. In an interview with Skype personnel yesterday I was advised these issues are now resolved with the Canadian launch set for 12:01 a.m. Sept. 9, 2009 when they will be able to download the recently released Skype for iPhone 1.2.

From the press release:

“We are delighted to bring the Skype for iPhone application to Canadian iPhone and iPod touch users as it opens up new ways for them to stay connected with family, friends and colleagues for free or minimal cost,” said Tom Yeung, Skype’s director of market development, Americas. “With more than 6 million downloads from the App Store so far, the Skype for iPhone application is one of our most popular mobile offerings so we’re delighted to say that Canadians can now also carry their Skype conversations with them wherever they go.”

Where can it be used: All Skype for iPhone features are available at any WiFi access point on both the iPhone and iPod Touch; however, when an iPhone is on a 3G wireless carrier the voice application is not available to be in compliance with the terms of Apple’s Software Development Kit licensing agreement. However, chat and presence activity can continue over a 3G carrier’s network.

To review Skype for iPhone’s feature set:

• What’s free:
  • Skype-to-Skype calls (only via a WiFi access point)
  • Skype IM: presence information and chat sessions between individuals or across groups
• What’s requires payments:
  • Calls to landline or mobile phones using either a Skype Calling Plan subscription or “pay-as-you-go” Skype Credits (requires WiFi access; connection fees may also apply)
  • Receiving calls at a Skype Online number (requires WiFi access)
  • Voicemail retrieval
  • Call Forwarding: (new in version 1.2) when the Skype for iPhone is not open on the iPhone, calls will be forwarded to the iPhone’s mobile number under the same terms as calls to landline or mobile phones.
  • SMS outbound messaging (new in version 1.2)

How useful is Skype for iPhone? when I was at a business meeting in Spain in early July, I found two North Americans using their Skype for iPhone as a “walkie-talkie” to communicate with each other while on the hotel property using its WiFi connection. Neat actually. With the rapid spread of WiFi access points as an alternative to using wireless carriers iPhone users should find many public and private (home, office) locations where they can use Skype for iPhone.

Rogers is ready to run Skype for iPhone’s voice calling over their 3G network whenever Apple removes their licensing restriction on VoIP applications employing 3G protocols. (But AT&T in the U.S. is probably nowhere near being able to handle the data traffic load that would result from lifting this restriction.)

Skype for iPhone suffers from one limitation of the iPhone: the lack of background processing. You must have the application open, not only to send and receive voice calls, but also to follow chat sessions. Hopefully the previously announced Skype for BlackBerry will address this issue where the BlackBerry supports background processing.

Bottom line: with Skype chat as over 80% of my Skype activity I look forward to being able to track chat sessions while riding buses and commuter trains (but not while driving a vehicle – text messaging while driving becomes illegal in Ontario this month). And making Skype voice calls from my home as well as hotels, restaurants and other myriad of locations with a WiFi access point.

P.S. – Is it coincidence that Skype for iPhone became legally available to Canadians so soon after the announcement that 17 million Canadians will have a shareholder interest in Skype? Probably not.

• Globe and Mail: Canadians, rejoice: Skype for iPhone is here
• CBC.ca: Skype finally hits iPhones in Canada includes a more detailed discussion about the licensing issue.

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So why would Skype announce support for, and In Store Solutions develop and launch, the FREETALK^® Everyman headset in a seemingly crowded market? Let’s step back a bit and look at some issues related to headsets:

• Skype’s research has found that a Skype user’s “end point” configuration is one of the main contributors to churn. A major component of the end user configuration is the PC’s audio chip; they have found evidence pointing to a lack of consistent audio quality across the various PC audio chip sets.
• The recent introduction of Skype’s “superwideband” SILK audio codec, supporting a 12KHz audio bandwidth, has set new bars for incorporating HD Voice performance into a headset – both the speakers and the mic.
• Headsets have always been an issue for road warriors trying to fit them into their briefcase or PC carrying case. Speakers that are at right angles to the main headband suddenly demand a space with about 3 to 5 inches of width. Breakage and loss are often the result. (Full disclosure: I have never found a headset that was suitable for easy insertion into my multiple PC carrying cases over the years.)
• Complementary to the PC has been the widespread adoption of (smartphone) media players such as iPod, iPhone and BlackBerry; standard earbuds are not capable of adequate overall audio quality, especially for bass tones.
• Cost: try to find a good quality headset for under $30 or $40. A “no brainer” impulse purchase is certainly assisted by keeping the cost low.
• Finally, in this age of online e-commerce, why do the devices that are shipped as a result of an online purchase need plastic clamshell packaging that goes straight to landfill (and generates emergency room visits when cutting the packaging open)? The sale has been completed; there’s no need for the packaging to be a “sell piece”.

Since late 2007 In Store Solutions’ wireless stereo headset has been a top seller on the Skype store. It has been my PC headset of choice ever since I received one in December 2007.

When Skype recognized the need for a headset that provided both consistent audio quality across all PC models (desktop and laptop) while also fully supporting the audio bandwidth demands of their SILK codec, they approached In Store Solutions about producing a new basic headset that addressed Skype’s audio quality concerns. But with In Store Solutions’ previous retail distribution and audio hardware experience they designed a product that also addressed the other issues outlined above.

The result of this partnership was the recently launched FREETALK Everyman Headset. It’s a USB headset incorporating an audio chip in the USB dongle. But on the headset side the USB dongle has a 3.5 mm speaker jack into which is plugged the removable speaker wire coming from the headset.

The physical headset itself comprises a unidirectional microphone to reduce background noise along with neodymium speakers supporting 20 Hz to 20 KHz stereo audio. Weighing in at 124g/4.3 oz, the headband and microphone are adjustable. (Hint: headset microphones work best when the microphone is positioned near a corner of your mouth.)

Compatible with both Windows 2000® / XP® / Vista™ and Mac OS 10.22 or later, the only other requirement is a USB port on the PC.

FREETALK^® Everyman incorporates:

• HD Voice support within the audio chip via its support for the SILK codec used in Skype for Windows 4.1 and Skype for Mac 2.8 (or later) and an overall 20Hz to 20KHz audio bandwidth.
• Plug & Play such that Skype immediately recognizes and acknowledges the headset as the default audio device for Skype (no need to go to Skype audio settings; no driver installation required)
• A flat fold-down design that compresses the entire headset to a thickness less than 3 cm or 1.25 inches; it readily fits into your PC carrying case.
• A removable speaker plug such that, when not using the headset with your PC, you can plug the speaker plug into any media player with a 3.5 mm audio jack, such as the iPod, iPhone (3G and 3G S) and BlackBerry.
• Eco-friendly “brown box” recycled cardboard packaging that not only eliminates sending plastic clamshells to landfill but also helps to reduce shipping costs.

And, to encourage “no-brainer” adoption, it’s available at the Skype Store at US$22.88/£19.88/€19.88 – including delivery (and VAT in Europe).

But the most important feature of any headset is the user experience. Several bloggers and columnists are currently reviewing the FREETALK Everyman; links to their posts will be incorporated into a forthcoming post summarizing the feedback as they become available. But two initial posts for more information and feedback:

• Skype’s Andrew Brennan: Skype Gear Road Test: The FREETALK Everyman Headset
• TMC’s Tom Keating: FREETALK Everyman Skype Headset Review where he concludes:

I made some test Skype calls and the audio quality was excellent. I also connected my iPhone using the 3.5mm jack and was able to play music using the iPod application on the iPhone. Slightly better bass response than my iPhone ear buds due to the larger speakers. All in all, a pretty good Skype headset.

Earlier today, Alec Saunders interviewed me on SquawkBox; with about twenty participants including both ISS’s Product Manager and Skype’s Hardware Product Manager contributing to the discussion. I’ll be adding a post covering this interview and incorporating a player for the recording shortly. (Update Aug. 25: you can now access the conference call recording on Saunderslog at SquawkBox August 13 – FREETALK Everyman.)

Hints (based on some initial user feedback): when you receive your FREETALK Everyman headset, ensure you plug the speaker plug into the speaker jack on the USB dongle for listening to your Skype calls or any multimedia playback from the PC. And to keep the cost down the volume control is carried out via the volume control slider in the Skype clients.

Bottom Line: Addressing the audio quality issue is only one aspect of the Skype user’s end point configuration that can affect the overall Skype call quality. The PC processor, active software programs, operating system (Windows or Mac) and user’s Internet connection can also contribute to the finalSkype call experience. However, the FREETALK Everyman headset optimizes the audio configuration of the PC and its associated audio hardware such that it consistently meet the standards required to support Skype’s SILK codec and its contribution to the overall calling experience.

Earlier posts related to Skype’s approach to call quality issues:

• At his talk to VON Canada in April 2006, Skype Goal: “Better than a phone”, Stefan Oberg outlined many user issues that Skype still needed to address at that time. During that talk Stefan mentioned Skype’s frustration with the fact “terrible user experience” when the user could not readily locate the audio jacks on the rear of (older) PC’s.
• In April 2007 Skype 3.2 was launched incorporating echo cancellation – which allowed users to use their basic PC mic and speaker for Skype calls without having to deal with echo feedback from the speakers back into the microphone.

Full disclosure: In Store Solutions has become a client of Denali InterConneXions, publisher of Voice On The Web, building on the author’s previous business development experience with establishing partnerships that can assist with the promotion of a primary vendor’s offerings. A more complete statement will follow shortly.

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Earlier this week Skype released Skype 4.1 Beta bringing back a few features lost in Skype 4.0 and introducing screen sharing (previously available with Skype for Mac 2.8 beta). From Raul Liive’s introduction post:

Skype 4.1 Beta for Windows brings to you long hours of work from our audio and video team. They have introduced screen sharing functionality into Skype for Windows and in addition to that they have also worked hard on audio and video quality and reliability.

In addition to the updates to the audio and video engines (incorporating the SILK codec) , Skype 4.1 restores birthday reminders (if you want to keep your birthday private, simply don’t enter it into your Skype profile) and exchanging Skype contacts. One other feature: it embeds Skype’s browser toolbars for Firefox and Internet Explorer.

But to put some more perspective on screen sharing (shown below is a screen shared from a MacBook using Skype for Mac 2.8 beta):

Desktop sharing is simply an additional communication mode that complements voice and chat conversation:

• It’s a complementary communications mode to chat and voice conversations
• It uses the Skype video stream; as a result you can either send video or display your screen but not both concurrently. Clicking on the video camera icon while sharing your screen will terminate the desktop sharing; click on the video icon again and video will commence.
• It allows either full screen sharing or a selected region (but not specific windows)
• The viewing party can see either a window view or a full screen view
• It is a one-to-one collaboration tool for one-to-one conversations; recall that video calling only supports one-to-one calls
• It provides an excellent way to enhance a conversation when editing documents, making a PowerPoint presentation or demonstrating a design or support issue.
• Updates are almost instantaneous and “snappy”
• It is the only screen sharing that allows sharing of full video activity such as showing a YouTube video. This capability results from its use of the Skype video channel which can handle up to 30 fps.
• It is NOT a moderator-managed conferencing collaboration service for multi-participant discussions and presentations.

Having been a beta tester for the browser toolbars, I’ll discuss them in a separate post.

Recall that this is beta software; you can find the Release Notes outlining features, improvements and bugfixes in Raul’s post. Take heed; there may still be bugs; I have already reported one. To quote Raul again:

which means that it might sometimes not follow your orders, but instead act on it’s own. In case this happens, please let us know by commenting on [his] blog [post], posting on the forum or reporting issues on our public issue tracker.

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I first met iotum CEO Alec Saunders as a competitor in the Canadian PC software market back in 1994. I was Canadian Country Manager for Quarterdeck whose QEMM-386 memory manager had been the tops-selling utility for DOS-based PC’s; Alec was Microsoft’s Canada’s Product Manager for DOS where they were introducing some memory management techniques into DOS 5 and DOS 6. (All to deal with the violation of the Bill Gates’-attributed memory maximum statement “640K is more memory than anyone will ever need.”)

But Quarterdeck’s development team kept coming up with ingenious ways to move drivers and other small utility programs outside the “640K” limit. QEMM-386 allowed users to, say, connect to networks while running multiple programs in this memory constrained environment using Quarterdeck’s DESQview. With the introduction of DOS 5 in 1991 and DOS 6 in 1993, QEMM-386 sales actually increased as awareness of memory management as a resource issue increased. Of course the introduction of Window 95 in August 1995 killed the need for a memory management utility altogether. But the point here is that Alec and I participated in a competitive environment that was actually mutually beneficial to us both; thus defining “co-opetition”.

We both moved on – Alec to Microsoft headquarters to become the original Internet Explorer Product Manager, myself to Los Angeles to work with a restructuring team at Quarterdeck. We would meet at conventions (usually Comdex) and occasionally exchange emails and phone calls for whatever business reasons. Alec returned to Ottawa in 2001 to take up product management and marketing positions with a couple of startups.

In April, 2004 I received a phone call from Howard Thaw, another acquaintance from my days involved with distribution of PC hardware and software in Canada, asking me to have a coffee with him during one of my trips to Ottawa on another project. He presented me with documents supporting his and Alec’s proposal to start up a new venture involving “applications that take advantage of the opportunities opened up by the emerging IP-based communications space”. The philosophy behind this goal is summed up in Alec’s Voice 2.0 Manifesto, pointing out that the value-add going forward in the communications space will be the applications.

After several iterations and developing some unique software, as well as winning a DEMO God award in 2006 iotum launched in the fall 2o07, initially as a Facebook application, Free Conference Call, a multi-party conference calling service which evolved over time into supporting the complete conference call process; the outcome then relaunched as CalliFlower in June, 2008. Through all this time I have also been privy to many of the financing trials and tribulations Alec and Howard have encountered as a startup.

Fast forward to the fall of 2008. iotum had decided there was an business opportunity in making an iPhone application for participants in CalliFlower conference calls.

Update, April 22, 2009: The posts previously linked here related to an issue that has subsequently been resolved satisfactorily with the developer who was the subject of the posts; the posts have been removed. However, I leave the remaining content in this post as it does make a point about how any outsourced service or outside contractor needs to be viewed as a team member even though they don’t have full “employee” status.

However, Alec sums up the situation very succinctly in the third post:

The lesson to be learned here is pretty simple.  When you bring a contractor into your organization you’re adding that person, albeit temporarily, to your team.  You expect to be able to work with them, through good and bad. To do that demands a certain generosity of spirit from all members of the team.

All across America, businesses are waking up to the reality that in this economic environment, team work is the key to getting through this crisis.  Whether it’s GM and their unions, the banks and their mortgagees, or the tech start-ups in Silicon Valley, businesses are learning that accommodation, flexibility, and sacrifice, not egos, are the formula for success.

When [a contract developer] failed on his first deliverable as part of our team, we simply worked through it with him.  But when we asked him to return the favour, he refused.   That’s why, in my opinion, he [was] not [at the time] much of a team player.

And that’s the reason I couldn’t [at the time] recommend [developer name] to my friend.

We had a similar experience at Quarterdeck when developing a Voice Over IP application called WebTalk in 1995. We needed additional resources beyond our internal development team, including a developer company to develop the codecs. Part way through the project, they tried an “extortionist” play. They quickly learned that, if you take on a development contract, it’s not about just delivering code; it’s also about demonstrating that you have the business smarts to realize that, even when you’re not an employee, you – as a contracted developer – better be prepared to play as a member of the team contracting your development expertise. And, as a team member, you work through the problems, including the financial issues, with from the perspective of being a team member.

There are many opportunities arising for developers in today’s communications markets, not only in the smartphone app store space (Apple, BlackBerry,etc.) but also with other platforms such as Skype and WordPress. If you’re a contract developer with this expertise, ensure you are comfortable, not only with the thrill of technical development but also the ride of working with startups who may be otherwise resource challenged, including financially – especially in today’s economic environment. You never know when your co-operation may result in having been a participant in that breakthrough “brass ring” opportunity.

In my thirteen years of running a consulting business, my clients have occasionally been challenged financially. Yet, in all circumstances, they brought their issues to me, we worked out a payment or compensation plan and I eventually was paid. (Some careers died in the process where a management change was involved.) But without that flexibility, I would never have received in one case, about two years later, funds that I needed to help my oldest son complete his medical degree at Stanford.

In today’s environment, rife with both opportunities yet significant economic challenges and barriers, it’s about building relationships for the long term, not burning bridges for short term gain.

Skype’s superwideband audio SILK codec is finally available for beta testing on Skype 2.8 for Mac Beta 2 released yesterday. I did a test call with Dan York yesterday where I was on a Windows PC with Skype for Windows 4.0 which supports SILK while Dan was using the new Skype for Mac 2.8 beta version. His subsequent Tweet, shown above on the right, says it all. I still cringe politely when not on a call with SILK support.

Otherwise the beta fixes a long list of bugs; the release notes document (Adobe Acrobat Reader required) outlines Known Issues as well as Fixed Issues. Two other changes:

• The My Account window is now embedded in the client itself (comes up for editing when you first install and log into the client)
• There is now a spectator window for screen sharing. Basically there is now an option to select a resizable portion of your Mac desktop to share as opposed to the entire desktop. (It still does not allow to you to select a specific window to share as is common with more fully featured web conferencing sharing¹.)

Desktop sharing (selection mode) as viewed on a Windows PC using Skype for Windows 4.0  sharing a selected portion of a MacBook desktop using Skype for Mac 2.8 beta 2. Note the SILK audio codec mentioned in the Technical Call Info.

Anxiously waiting to see Desktop Sharing as an additional communications mode in Skype for Windows… (along with full support for Skype Public Chat restored…)

Download Skype for Mac 2.8 beta 2 here. Full set of Release Notes.

¹ Recall that Skype’s desktop sharing is simply another conversation mode which can be activated across basic two party calls through the “Skype video” channel. It is not a full web conferencing service at all. Its one unique feature is the ability to handle share up to 640 x 480 video streams at 30 fps.

The Voice On The Web public chat has continued to be lively through the week. Not only has Skype’s Senior Product Manager responsible for Skype for SIP, Chris Moore, participated but a couple of other guests have joined the discussion to clarify some issues.

First to summarize Chris’ comments:

• He is sorting through the overwhelming number of beta program applications with the intent to make accepted accounts live early next week
• G.711 codec support is in the late stages of development and may be available as early as next week; this will be accompanied by a list of countries where G.711 is supported.
• Chris has been taking input from participants with respect to SIP header information that would make Skype for SIP more broadly applicable. This, of course, leads into a discussion of going outside the “box” of SIP header standards. (SIP headers basically provide information that is transferred across a SIP connection.) More information from Jason Goecke at Adhearsion; Dan York at Voxeo has made an initial suggestion over at Github.

However, more significant have the the responses from Digium about their perspective on where Skype for Asterisk is positioned and the participation of David Tang, Vice President, Global Marketing at VoSKY in the Public Chat discussion.

Steve Sokol at Digium put up a post, “The Rumors Of Our Death” where he outlines key differentiators of Skype for Asterisk from Skype for SIP (slightly revised by Steve after feedback from Skype and chat participants):

• SFA can handle incoming Skype calls directly from any user on the Skype network.  SFS can receive incoming calls from Skype users names that are statically mapped to a Skype name to a SIP account.
• SFA can place calls to any user on the Skype network.  SFS cannot place calls to Skype users.
• SFA includes support for Skype presence information.  SFS has no support for presence.
• SFA includes buddy list management.  SFS has no buddy list management features.
• SFA calls are encrypted from end-to-end while SFS calls are delivered to the SFS endpoint devices (PBX) as unencrypted RTP streams.
• SFA supports multiple media codecs including G.711 aLaw and uLaw as well as G.729.  Wide-band audio will be available in a near-term revision.  SFS supports only compressed telephony-grade G.729 media streams.

Ultimately, the key differentiator is that SFA is designed to allow developers to build rich applications that are deeply integrated with the Skype network, while the SFS offering is a trunking solution for legacy IP-PBX systems that support SIP. Both have their place and neither is specifically competitive with the other. Both Digium and Skype are dedicated to Skype For Asterisk and both are working hard to make sure that when released it exceeds expectations.

Steve then goes on to discuss the current status of Skype for Asterisk, why it is taking so long to come out of beta and makes this important point about changes in the Skype Business Control Panel:

Enter the Skype Business Control Panel (BCP).  Skype’s Skype For Business division has launched an all-out effort to make business customers a corporate priority. Currently the BCP is simply a way to aggregate and share Skype credit.  As business services like SFA and SFS are rolled out it will take on a much more prominent role as the administrative interface for commercial customers.

The next update to the BCP will allow business customers to create master accounts that are owned and managed by companies rather than individuals.  With the BCP, Bob’s account would have belonged to AGI rather than to Bob, much like his AGI email account and company credit card.  If Bob went in search of greener pastures the system administrator could simply redirect his calls to another sales guy.

Jason Goecke has then put up his second post on Skype for SIP, Skype for Asterisk DOA; long live Skype for Asterisk, clarifying his positioning of the two offerings and concludes with:

The point is not to declare SFA dead, but to highlight these points in the hopes that the opportunities for deeper integration and the associated benefits are clear. For SFA to overshadow the SFS announcement, I contend these features are needed:

• Two-way chat via the Manager API
• Extended presence support
• SILK-codec support, which would require end-points (ie – SIP soft phones/hardware phones) embedding SILK

I understand that Digium and Skype need to get SFA to market, but a clear roadmap of what comes next and the timing would be immensely useful as developers look to place their bets. I applaud the work that Skype and Digium have been doing and the opening of the Skype network on multiple fronts. I just hope this is an opportunity to open the Skype network that little bit more.

David Tang at VoSKY has also contributed to the discussion; his main point:

We have our fair share of scars from being an early pioneer working with Skype.  Digium is just beginning to experience it.

From the tone of a few comments re VoSKY in the chat and considering their long experience with Skype implementations in businesses, a large reseller network and their creative ingenuity, we can expect that VoSKY will figure out a way to  go beyond simply continuing to be a “Skype trunking” solution for legacy PBX’s lacking SIP support (non-SIP PBX’s).

Back to the Business Control Panel (“BCP”) and its role. To date it has simply been a means for an administrator to manage Skype accounts in terms of handling Skype credits and implementing Skype on PC’s within an enterprise. Going forward Chris Moore has made the following comment:

I think I’ve chatted about the BCP in some interviews, yes the BCP will take a larger role in administration for small business of existing and new services. It will be the central portal for an SMB to use Skype.

Seems that there are many of the Voice On The Web Public Chat who are ready to start experimenting and developing with Skype for SIP; I look forward to monitoring the feedback as they finally get their hands-on experiences. Bottom line: from these developers, Digium, VoSKY and others, Skype has launched a significant opportunity to see innovation at work solving real business communications issues.

Overall Skype is starting to execute on their Business strategy through the new Business marketing group. The Business Control Panel is central to this strategy. We now have seen three activities in that direction: Skype for SIP, Skype for Asterisk and the Lotus Live support.

Update: Chris Moore has confirmed that the first beta account acceptances have gone out today; login details and passwords will be issued Monday/Tuesday next week.

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Yesterday’s announcement of the Skype for SIP beta created lots of commentary in the blogosphere; it remained the leading topic on Techmeme for several hours.

• Phil Wolff over at Skype Journal, in “Skype For SIP: Big Money, Skypeless, Brand Destroyer”, outlines some of the positioning with respect to Skype for Asterisk, channel schism issues and worries that it abandons Skype’s central tenants and could undermine the brand.
• Alec Saunders, in “Skype embraces SIP; announces beta service for business users”, talks about the impact on businesses using legacy PBX’s, the increased pressure on international long distance markets and a reminder that about 1/3 of all current Skype traffic is business related.
• Jason Goecke at Ahearsion, a Skype for Asterisk beta developer, worries about the impact on the market for Skype for Asterisk in “Skype for SIP = Skype for Asterisk DOA?”

But most interesting was the Voice On The Web Public Chat session that ensued. Being on a vacation I was away from my laptop for about seven hours (yes, it was a great day to be golfing) but when I returned I found a session that not only provided the flavor of the vibrant debate going on but also many answers. The key – Chris Moore, Skype’s Senior Product Manager responsible for Skype for SIP joined into the discussion to make several points:

• Most importantly – this is Skype for SIP beta; his team is looking for feedback from a range of beta testers, not only third party developers but also the IP PBX vendors themselves. To quote Chris:
  

  Yep, whole idea is to get feedback, see what people want/don’t want to help prioritize development of new features. Our group, Skype For Business, is getting a lot of focus and its a key strategic focal point for Skype now. We’ll never get it completely right at the start, but a start is still a start

• To qualify as a beta tester you need to have some experience with configuring IP PBX’s that are currently in the market. For instance, “you must have, and be able to configure, your own SIP Enabled PBX that supports G.729 codec.”
• Beta testers will need to create a temporary Skype name to use in the beta program; the issue of a separate SkypeID and how it was handled was hotly debated.
  One point to clarify:

  Skype for SIP actually can allow multiple Skype IDs to be mapped through to a single SIP identity. However, during the beta period, we are only supporting a 1 to 1 mapping due to the fact that Skype’s advanced Business Control Panel (BCP) configuration portal is not yet available at this time. If a company wishes to configure multiple Skype ID’s mapped to a SIP identity, we can accommodate this for a subset of the beta trial participants.

• The key connections made by Skype for SIP are:
  

  - PBX –> SkypeOut (PSTN)
  - SkypeIn/Online numbers (PSTN) –> PBX
  - Skype Clients –> PBX

• The business model, including pricing, has yet to be worked out. It will require Skype to determine a means to separate out business users from “consumer” users on both Skype for SIP and Skype for Asterisk. The principle here is that business benefits from the various features of these offerings; where such significant value-add exists there is a market for the services. But any pricing for either offering is yet to be determined, keeping in mind that both offerings’ desire to make significant market penetration will be a key moderator on pricing. Again quoting Chris:
  

  no new road is easy and enhancing our focus so Skype can support business users as a distinct group differently from consumers takes some work

• Differentiation from Skype for Asterisk will be an ongoing challenge. Initially Skype for Asterisk, which will be an Asterisk channel, includes handling SIP—>Skype calls, Skype-to-Skype calls and will incorporate presence information. (My comments on an ignored aspect differentiating these are below.)
• While SFS may incorporate some “Skype trunking” capability, SFS also offers the handling of inbound calling from Skype Online numbers.
• As for the current status of SFS, Chris says the focus at the moment is on getting voice connections right as this is the feature most demanded in the market:
  

  and this is baby steps for Skype, there are many more UC services to come, voice for SIP is the biggest ask from customers. Video/presence etc only make  sense when codecs are common between skype clients and SIP endpoints.Some work left there!

• Codecs are an issue. The initially supported G.729 codec requires licensing. The Skype for Business team is working on incorporation of G.711 within a few weeks but eventually hopes to assist with the adoption of the SILK codec across the industry by supporting SILK. But this also requires SILK support at the end points. Bottom line: codecs have both a technology and business issues to be resolved.
• Security is an issue that will probably provide one of the major challenges as Skype opens up access to its cloud from both Skype for Business offerings.

My own observations, not having been around for the discussion:

• Skype for SIP and Skype for Asterisk: the discussion yesterday centered on technical issues but totally ignored the market channel issues.
• Skype for SIP requires working with the various IP PBX vendors who have their own distribution channels; Skype for Asterisk is a partnering project with Digium who has its own unique distribution channels. These channels are both looking for innovation that keeps them in business. Yes, the common issue is that SFS and SFA both threaten the long distance market, but the VAR’s and System Integrators in these channels will need new offerings that meet this challenge.
• A significant challenge for both SFA and SFS will be the User Interface. How much will either of these products make the installation,  configuration and operational aspects so user friendly that outside support requirements are minimized or eliminated. This is a huge challenge in the SMB market as many small business owners will simply not want to be involved with such issues; they have their own business specialty to focus on. The value-add of VAR’s and SI’s serving any business market comes in making business communications low cost, seamless to the business operation and five 9’s uptime for their customers.
• There is not one solution that will meet the complete world of business needs. Currently in this SMB space we have several vendors: Cisco, Microsoft Response Point, Avaya, Siemens, etc. The world would be up in arms if there were only one offering for providing the disruptive innovation for which Skype can provide support to these channels.
• The issue of addressing consumer users vs business issues recalls the PC market twenty years ago when PC hardware vendors, initially Compaq, finally figured out how to differentiate and address these markets. This was a major issue I had to deal with in setting up a PC reseller network at the time. Today we see Dell addressing these various markets as soon as you launch into their website.

The Skype-enabled world is only healthy if there are alternative offerings and channels. Recall the theme of Skype President Josh Silverman’s reminder to the analysts last week: “Skype is a software company but we plan to be everywhere”. The Skype for Business group is focusing on making the software required to support these offerings; this software will leverage the IP PBX vendors and Digium distribution channels to drive adoption through into the various regional business market channels worldwide.

Update: While Om’s post, Skype Now Means Business, Friends the SIP World, demonstrates that he has not been following very closely the strategy being laid out by Skype’s new executive team over the past few months, the comment stream it triggered  is well worth reading. For instance, check out SFA developer Tim Panton’s comment about the opportunity for innovation he has found in SFA:

That aside, I’m a huge fan of S4A and our experience to date has been positive. We leverage the improved identity management (vs PSTN or SIP) and low costs of Skype to do some very cool integration with business processes and web applications by routing Skype calls through the extensible and scriptable platform of Asterisk. [author’s bold]

Next Post: Why Skype needs to get Skype Public Chat back into the latest release of Skype for Windows 4.0. The discussion referenced above demonstrates that this is the major failing of this version.

Update: Andy Abramson at VoIP Watch: Skype and SIP Equals A Takeaway of Toll Free

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Last week Skype announced that their new superwideband SILK voice codec would be made available royalty-free to any vendor who wants to incorporate it into their calling infrastructure. So how does this impact a voice engine supplier such as Global IP Solutions?

Very simply Global IP Solutions focuses on selling “engines” – voice engines for voice calling, mobile voice engines for mobile devices (initially iPhone) and video engines for video calling and messaging. These engines are then embedded in customer applications developed by IBM Lotus Live, Yahoo, Oracle and many other software publishers.

A voice or video codec is one component of these “engines”. The value-add and differentiation comes with the feature set of the entire “engine” which will address issues such as:

• bandwidth management (adapting to network and end point conditions)
• jitter and packet loss (addressing packet errors and synchronization)
• establishing a connection between parties (with GIPS this will be a SIP connection)
• user’s audio environment: echo cancellation, background noise
• battery life (for voice engine on mobile devices)

Bottom line for the GIPS customer is to supply a bidirectional Internet connection as well as a speaker and microphone connection. GIPS then worries about all the digital signal processing and related voice quality management issues. From the GIPS “Implementing Voice and Video over IP for the iPhone and Smartphones” White Paper (registration required):

While GIPS developed the highly respected  iSAC codec several years ago (and which was used in Skype clients for the first few years), their voice “engine” architecture allows for the use of any codec within the overall voice engine. Speaking with Global IP Solutions CEO Emerick Woods last week he welcomed the availability of Skype’s SILK codec and, being customer driven, said it would be available within a GIPS voice engine for any customer who requested it.

Recall that Jonathan Christensen, is his announcement at eComm 2009 last week, pointed out that the SILK codec is not only available to any vendor but also its use will not require any association with a Skype offering. Skype basically wants the voice communications industry to have available an HD Voice capability that will lead to clearer voice calls, reducing confusion due to low audio bandwidth, accents, speech inflections, expressive intonations, etc. Recall that studies have shown that HD Voice, such as offered on many Polycomm products, will lead to more productive call centers and customer support operations for this reason alone.

Following an “engine” vendor such as Global IP Solutions will provide us with a view into how readily accepted the SILK codec becomes as its availability and feature set awareness increases across the voice communications market space.

Sometimes an industry is more about co-opetition than competition delivering a win-win-win for all parties, especially the end user.

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With the launch of Skype for Windows 4.0, Skype delivered its first client incorporating Skype’s new superwideband SILK codec providing a new user experience in voice calling. For example, Alec Saunders in “Skype 4.0 audio: smooth as SILK”:

Perhaps the biggest improvement, though, is audio quality.  We all thought that Skype audio was great, right?  Skype’s internally developed SILK codec slipped into the final release, despite not having been in prior betas. A wideband codec that delivers the goods at half the bitrate of prior codecs, SILK makes talking on Skype a pure pleasure.

The SILK codec will be rolled out with the final release of Skype for Mac 2.8 (currently in beta but without the SILK codec) in April and in the next Linux release (no date given). The coding was designed to allow easy embedding into hardware devices, such as sound cards, headphones and Skype phones. But this still limits the SILK experience to Skype-to-Skype calls. So they looked at the question of how can Skype most readily advance the deployment of this high quality codec  and the resulting user experience at billions of additional voice conversation end points?

At eComm 2009 this afternoon Skype announced, during Jonathan Christensen’s keynote presentation, that the SILK codec will be licensable, royalty-free, to device manufacturers and others; it has been designed independent from Skype signaling protocols such that it can be used in voice streams incorporating the SIP protocol. Jonathan mentioned that there is no requirement to use the SILK codec in conjunction with a Skype implementation.

From an interview with Jonathan Christensen, Skype’s GM for Audio and Video, with Alec Saunders in Skype’s SILKen bear hug: “Further, SILK media streams pass unchanged across Skype’s own media gateways, meaning that SIP endpoints have suddenly become much more compelling in the Skype world”.  Alec goes on to discuss two reasons for Skype’s strategy: (i) to spread superwideband audio everywhere and (ii) to give existing carriers a bear hug. Read the post for details.

In his post on this announcement, Jonathan pointed out what the three year Skype SILK development process focused on:

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

I have watched as a wireless carrier attempts at new video calling services are introduced and subsequently fail due to a lack of adoption – the primary reason being there are too few devices out there supporting video calling and thus, there’s nobody to whom one can make a wireless video call. Skype’s announcement today overcomes a major barrier to allowing a much broader user base to take advantage of superwideband audio. It’s a first, but key, step towards a broader goal than “Skype Everywhere”, namely, superwideband audio on all voice calling.

Finally, this afternoon I had a chance to meet many members of the SILK development team who attended Jonathan’s presentation. They deserve kudos and congratulations for all their ground breaking efforts and success in setting new standards in voice call quality.

Developers can find more information at Skype’s SILK website.

Phil Wolff, Skype Journal comments on the SILK performance slides shown at the presentation: SILK performs better

Update: The transcript of Jonathan Christensen’s Codec Evolution and Industry Proposal presentation.

At last fall’s AstriCon, Stefan Oberg, Skype’s Vice-President for Business, announced the launch of a development program with Digium leading to Skype for Asterisk. Today Digium posted a progress update outlining the current status of the beta program along with more details of the Skype for Asterisk feature set.

Digium claims to have logged “tens of thousands of hours of Skype-to-Asterisk communication”. They’ve also learned a lot about “the art of connecting Asterisk to with the Skype global network”. The post then goes on to provide more details of the forthcoming offering:

The SFA product will be the only solution that integrates Asterisk directly with Skype. This is not a “proxy” solution and the call quality will be superior to anything else on the market. Customers will have the ability to make, receive and transfer Skype calls from within Asterisk phone systems, using existing hardware and existing Asterisk configurations: Skype calls become just another Asterisk call.

Some of the features that will be supported in the market release are:

1. SkypeIn: Receive calls from the public telephone network using standard phone numbers

2. SkypeOut: Make calls to landline and mobile numbers at incredibly low rates

3. Standard phone features: Incoming/outgoing digits (DTMF), Caller ID

4. Smart call routing based on called Skype Name, Caller ID, country of the caller, language they have chosen in their Skype client and etc.

5. Retrieve Skype credit balance information

6. Store and call PSTN and Skype contacts

7. Retrieve and set Skype user presence information

8. Support for G.711 and G.729 voice codecs

9. Each Skype channel license includes a Digium G.729 codec license

Accomplishments to date have been with a very small pilot group of testers; this week they opened up testing to a second larger group. The next stage will be a public beta but no timetable is provided. What I can say is that I have been requested by a beta tester earlier this week to be added as a contact on their Skype for Asterisk test platform.

One interesting statement: “This is not a “proxy” solution and the call quality will be superior to anything else on the market.” Yet the feature set only shows support for narrowband audio G.711 and G.729 codecs. Will there be support of Skype’s SILK super wideband audio for calls routed through Skype for Asterisk that are effectively Skype-to-Skype calls once the end points are connected?

With over 3,000 applications for participation in the public beta, it looks like there is great interest; however, the final proof comes only with a successful launch.

Hat tip to Dan York for his Twitter retweet.

Update: Jason Goecke reports: Experience with the Skype for Asterisk Beta.

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• Skype for Asterisk (stateless.geek.nz)

Last day to register today for Regular Pricing; Late pricing applies for registrations after Feb.17, 2009. Enter “one touch” for a 20% discount.

Two weeks ago eComm 2009 organizer Lee Dryburgh observed that:

With the heavy backdrop of economic doom and gloom everywhere I’d been finding it ever more strange that virtually every company I was dealing with in relation to the 2009 conference, was reporting accelerating business let alone [as opposed to] flat or declining business.

Via a Skype multi-party call he held a virtual panel discussion involving:

• Jonathan Christensen (Skype)
• Irv Shaprio (IfByPhone)
• Rodrigue Ullens (Voxbone)
• Graham Brierton (Voicesage)on this topic.

When asked about today’s economy he repeatedly found eComm 2009’s sponsors saying “Oh no, we’re actually doing better, due to the downturn”. So he asked each of the panelists what their offering was doing such as to accelerate their business.

Graham Brierton (VoiceSage):

For example, we had a company that the key thing they wanted to do was bring in their debts cheaper and quicker, instead of reminding people to pay their bills.  Part of the paying the bill process was transferring them back into a call center to actually collect the money.  What we noticed when we analyzed the data was they were getting a hell of a lot of people that were wanting to pay between 3:55 p.m. and 4:05 p.m.  We still don’t know the reason why there is a peak at that point, but there is a peak at that point.

One of the issues that these guys had was that they couldn’t actually take all of those calls because they had a shift change at 4:00 p.m.  They were unaware that because they had a shift change there were a lot of people that wanted to engage in a process with them but they weren’t allowing it because of their internal business processes.  They actually changed that.  That came as a direct result of simply looking at the data generated from the interactions that their customers were having with us, and us trying to collect money from them.

Irv Shapiro (IfByPhone):

Batteries Plus is a franchise-based business in the United States and Canada that has hundreds of retail stores that sell only batteries.  If you need a battery for anything, you go into Batteries Plus or you go to their website and you can purchase a battery.

In many, many cases, people need a battery right away so they want to go to a store.  Batteries Plus was finding that they were fielding hundreds and hundreds of phone calls to stores asking for routine information such as “What are your hours of operation; which is the closest store to my address…?”  We automated that process for them.

In fact, they automated it themselves by going to our website, provisioning a toll-free number, putting in a IVR on the front end that asked a couple of very simple questions to determine whether the customer was looking for information about batteries.  In that case, the call was transferred to a central call center corporate.  Were they looking for the closest location, in which a geo-coded application automatically provided them with the closest location and driving information.  If they were looking for store hours of operation, same geo-code process except in this case we retrieved the hours of operation.

They found a dramatic increase in the productivity of their in-store personnel because now those personnel could concentrate on spending time with customers in the store.  The side effect of that is they sell more batteries.

Rod Ullens (Voxbone), who reported business growing at 15% per month:

At some point, they [cloud based services such as VoiceSage and IfByPhone] need to reach the PSTN.  Most of them actually need a telephone number to be activated.  The bigger they get, the bigger we get.  That’s already one reason.  It’s not necessarily because of us, but because of our customers that have services that are interesting, and we grow with them.

If you look at the way numbers were used in the past, where you had a telephone number that was just linked to a physical location, that’s all you can do with it.  The cost to dial such a number is pretty expensive.  What we’ve done is to just completely take away the geographical link.  Now a number is just a software-based identifier that people can use to call you on.  It’s very flexible.  You can just build up a service.

First of all, that service can be completely Internet based.  You can just use telephone numbers from Voxbone to make it reachable from traditional phone networks, from mobile phones and so on.  Basically, you can be a company and have a virtual presence in a lot of countries.  From day one, you can start a service provider, in forty-five countries.  I think that’s one major reason why we’ve grown, especially now.

Jonathan Christensen (GM Audio and Video Platforms, Skype), in response to Lee’s question: “What do you think is driving these minutes?  Is it businesses using Skype, for a change, in order to save money, for example?”

We’re seeing two things.  One is just consumer migration to value; people want to avoid long distance, but we also see in the consumer space a network effect around your friends being there, the quality being great, it being convenient and easy.  We have a large constituency of people where it is the convenience, free, and easy factor.

On the business side, Gartner, for example, recently said they kind of backed off their position that Skype is dangerous, evil, and will introduce Trojans into your network, and so on.  We hear; we have a bunch of case studies and we hear more and more from corporate IT, these commandments to their workforce saying, “When you’re travelling, when you’re making long distance calls, when you’re going to be faced with insane roaming charges, please try to use Skype.  It works, it’s easy, you can download it, it’s free”.  We are seeing acceleration in that sector, as well.

These are snippets from the discussion; Lee has transcribed the entire session in a eComm 2009 blog post.

Note that while all the participants in this call will be presenting, Jonathan Christensen will be delivering a keynote presentation: “Codec Evolution and Industry Proposal” along with a Skype announcement.

Bottom line: if you’re looking for value in communications services that drive business decisions, if you want to be a player in the emerging communications space, eComm 2009 provides the best opportunity to get a three day education in how the Voice 2.0 world will evolve. It’s an opportunity to network with the thinkers and business leaders who will be providing services for that market space. That’s why I’ve convinced a friend who is a 34-year veteran in the Canadian telecomm market to come; he wants his new consultancy to have relevance going forward.

Register here; enter “one touch” to get a 20% discount. Speakers. Schedule.

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Columnist David Pogue in a New York Time article reviewing Skype 4.0 starts with the AT&T video phone demonstrated at the 1964 New York World’s Fair and user experience from then. Not a lot of calls due to technical and psychological issues. He talks about why Skype has been so widely accepted (did he remind us it was “free”?) and why Skype has been a survivor when up against iChat, MSN Messenger, SightSpeed and others.

He goes on to mention several issues that have inhibited video calling in the past but then says:

The video quality still varies when you use Skype. Fast Internet connections and fast computers still work better than slow ones. But if you do have a good setup — wow. With certain Logitech or Philips webcam models, Skype 4.0 can deliver a picture that’s as big and sharp and smooth as a TV picture (30 frames a second, 640 by 480 pixels), with almost no delay.

In my test calls to friends in California, New York and Virginia, we were amazed at what a difference it makes when the delay goes away. (Maybe, for its next trick, Skype can lend its technology to the world’s cellphone carriers.)

He then went on to make calls using iChat, ooVoo and SightSpeed: “None of them matched Skype’s immediacy or video and audio quality.” He discusses Skype’s new level of audio quality (with the SILK codec) and reduced network bandwidth speed requirement. He mentions some features that he would still like to see and mentions what differentiates services such as SightSpeed. His closing comment places Skype video calling into a historical perspective:

….. Will we one day adjust to the idea of being on camera every time someone calls?

Nah.

In the end, video chatting isn’t a replacement for phone calls, but a supplement to them, a perfect way to check out someone’s new place, check in with distant family and friends or show off a new talent (or baby). They saw the possibilities back in 1964 — they just didn’t realize that we wouldn’t always want to use them.

Go read David’s post (free registration may be required); it’s an excellent yet objective review of the personal video calling space from the end user perspective. I guess David doesn’t watch Oprah; she seems to be using Skype High Quality Video almost daily according to reports from my wife.

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The most recent hotfix release of Skype for Windows 4 Beta 3 had one key new feature:

• feature: Super Wideband audio codec

The associated Skype Garage post went on to say:

… Starting from this version we’ve included the new Super Wideband Audio codec. This is our second in-house built audio codec especially designed for calls over the internet with superb quality. The Super Wideband Audio codec will help you most on lousy network conditions and when you have lower bandwidth available, although it also improves quality in normal conditions too.

Today Skype for Windows 4.0 Gold release will now allow the entire Skype for Windows user community to take advantage of the SILK codec’s features.

SILK is basically a significant improvement on Skype’s previously acclaimed HD Voice performance. I have now experienced a couple of calls where this SILK codec was available at both ends of the call; it certainly provides a clearer, crisper audio experience. (For those unfamiliar with the term “codec” they are algorithms engineered into the voice communications network for converting audio waveforms into digital streams for transmission over the communications network and then converting them back to an audio waveform at the receiving end.)

Last week I had the opportunity to interview Jonathan Christensen, Skype’s General Manager for Media Platform to learn more details about this “SILK” codec. This codec is the outcome of a three year development process with a focus on:

• improving the audio bandwidth out to 12,000 KHz
• providing bandwidth management to deal in real time with degraded  network conditions
• balancing the codec optimization between voice, music and background noise, each of which can have an impact on the overall user experience
• overall robustness to provide a more consistent user experience, regardless of network conditions and an individual caller’s voice signature.

While the human ear can hear sounds up to 22 KHz the actual sound produced by human vocal chords has a frequency range of 20 Hz to 14 KHz; however, sounds below 70Hz are not what you would call “pleasant” (as experienced with those “thump, thump” car speakers). Skype’s SILK codec is optimized for the transmission of audio between 70 Hz and 12 KHz. Compare this to the bandwidth of the PSTN’s standard G711 codec of 400 Hz to 3.4KHz; wider band codecs, such as AMR-WB and iSAC cover the range of 50 Hz to 7 or 8 KHz respectively. And, as indicated in both the AMR-WB and iSAC Wikipedia entries, there is a major licensing cost consideration:

AMR-WB has been standardized by a mobile phone manufacturer consortium for future usage in networks such as UMTS. Although its speech quality (similar to Skype, including glitches) makes it likely that older networks will have to gradually be transformed to support wide band, its high legal costs may limit its uptake.

However, in order to deliver on this audio bandwidth, Skype also had to consider getting the voice stream across the Internet. SILK interacts with Skype’s redeveloped (network) bandwidth manager that uses a feedback algorithm to provide “adaptive bandwidth management”. SILK is a “variable bitrate” codec that can scale the bitrate (amount of data being transmitted as voice packets) up and down as necessary. The key network parameters governing this adaptation are packet loss and jitter changes. Fundamentally, to the end user, this means incorporating a level of call robustness that results in improved consistency of call quality, especially for lower speed Internet connections (below 3Mbps) with no user intervention required.

Another factor to be considered are accommodations for differences in perception of audio quality depending on whether there is voice, music or random background noise involved in the audio signal. Suffice it to say that Skype’s engineers have been involved in a balancing act amongst these factors in the development of the SILK codec.

The bottom line is that Skype has set new barriers for voice call quality and and the associated user experience. Since there needs to be SILK at both ends of a call, the number of calls I have experienced with SILK has been limited but, as mentioned above, those I have made had a very crisp, clear audio quality. With Skype’s launch today of Skype for Windows 4 Gold release almost all my Skype-to-Skype calls will be able to achieve this performance level. Going forward expect to see SILK incorporated into ont only Skype for Mac. But the the SILK codec has been modularly designed for embedding into silicon; we can expect some future Skype-enabled hardware platforms to be able to take advantage of SILK’s performance.

And finally note that, in order to keep costs low while improving call quality, Skype has no licensing costs associated with their proprietary codec. Is there a potential for a new Skype revenue stream by licensing this codec to other communications service providers as well as hardware vendors?

Over the past eight months 1.2 million Skype users have participated in the Skype for Windows 4.0 beta program (stage 1, stage 2, stage 3). During this beta period, not only current user feedback was sought but also feedback from new users installing Skype for the first time. The goal was to provide a user interface that was more intuitive while encouraging users to go beyond simply voice calls to experience and use chat and video conversations.

Today Skype is announcing the Gold release of Skype 4.0 for Windows. From the download page:

We’ve built this brand new Skype so you can have the conversations that make a difference to you, every day. It’s easy to use, plus step-by-step guides help you get started.

While most of the new features have been revealed during the beta period, Skype’s marketing will focus on three key features:

• New user interface; with over 25% of Skype-to-Skype calls involving video this new release has been designed with a focus on improving the video call user experience.
• Improved call quality: Skype 4.0 for Windows incorporates Skype’s new SILK codec whose features are discussed in a separate post today. Bottom line is a crisp, crystal clear audio experience, yet only half the network bandwidth of other codecs is required to support a voice call.
• Bandwidth management: a new bandwidth manager has been developed with the goal of improving overall call performance by adapting, in real time, to degraded or low speed network conditions, such as those caused by excessive packet loss and/or jitter.

The new user interface also has taken into account factors that encourage users to explore Skype beyond voice calling. Incorporating beta user feedback Skype has found that the new UI is driving up adoption rates for Instant Messaging, file transfer and video. When you open a contact window launching a voice, chat or video conversation requires a single click on the respective voice (“Call”), chat or video button. The associated text pane tracks not only chat messages but also voice and video call detail information (launch time, end time) as well as file transfer information. And, as in the past with chat, the entire record is all archived on your local PC for future recall.

Other features: You can choose to view your Skype activity in one larger screen or in individual “conversation” windows. During a call a drop down menu on the “call audio control bar” provides quick access to making any necessary audio or video settings. Single click buttons allow you to quickly change oe add conversation modes to adapt to the context of the conversation. A wizard provides assistance with testing audio and video settings. During their testing they found that these features drove new users to more quickly experience chat and video while there was an increase in usage of these modes by legacy users.

On-the-fly the bandwidth manager can adjust both video and audio transmission by making real time adjustments to parameters such as video resolution, frames-per-second or audio bandwidth. to ensure an ability to maintain a basic level of communication while enduring these conditions. Once again the goal is to improve the overall user experience with no user intervention required.

Two changes;

• The SkypeMe! status button has been removed as a result of its tendency to be used for spamming and other forms of unwanted calls. (Of course you also still have the option to only allow callers in your Contact list to call you.). Along with this Skype has introduced “abuse reporting” which is monitored by Skype personnel for dealing with undesirable calling activity.
• While you can still participate in Public Chat sessions launched or joined from Skype 3.8, there is still no ability to launch or join a Public Chat from Skype 4.0 for Windows. This is my primary complaint about the new user interface. We have had a Skype 4.x Public Chat discussion ongoing since May, 2007; it has provided an interesting dialogue amongst Skype users and Skype personnel, including some feedback on features in Skype 4.0. And is has supported many other informal “water fountain” conversations amongst special interest communities of Skype users. Skype for Windows Product Manager Mike Bartlett claimed yesterday, during an interview, that Skype was reviewing how to embark on “public conversations” in today’s messaging world where services such as Twitter and Friend Feed also provide ongoing dialogues. However, Skype Public Chat has its own “space” in terms of user community; it needs to be brought back as soon as possible.

Over the next few weeks, with more experience using Skype 4.0 for Windows we may cover some features in more detail. In the meantime you can download it here. We look forward your feedback in the Comments. Release Notes are here.

Yesterday Skype went past 16 million concurrent users around 1830 GMT. It will be interesting to monitor both the concurrent user number and Hudson Barton’s “real user” indicator as Skype 4.0 for Windows installations grow over the next couple of weeks..

Of course, the best news is that Skype-to-Skype calls (including multi-party calls), chat and video calling remain free. And there are calling plan subscriptions available for low cost calling to landlines worldwide.

Other Posts:

• Mike Bartlett Discusses Skype 4.0 Beta on Squawk Box
• Skype’s videos about the 4.0 beta limited release
• Mike Bartlett Comments on Skype 4.0 User Feedback
• Mike Bartlett on Skype 4.0 Beta 1 Feedback

High Quality Video certainly places superior demands on technology resources; in testing yesterday evening with Phone Boy, Dameon Welch, we found superior performance for the user who has those resources.

In previous posts I have talked about doing a setup for High Quality Video and subsequently putting together the requirements, goals and benchmarks for High Quality Video. Working with a 1.6 GHz CoreDuo Laptop, Logitech 9000 webcam with version 11.5 drivers, Skype 3.6 for Windows and a 6Mbps download/800 kbps upload cable Internet connection at my end and a 2.6 GHz Core2Duo Desktop, and even faster Internet connection at Dameon’s end we did test video calls of both Skype’s High Quality Video and SightSpeed 6.0 to determine what constitutes the better user experience. In today’s post I will describe our High Quality Video results; tomorrow I will provide a summary comparison with SightSpeed. along with commentary on some other experiences that helped to define what to expect for High Quality Video.

As a preamble to our results, and building on my recent interview with Jonathan Christensen, Skype’s GM for Audio and Voice, their High Quality Video is the result of extensive co-operation between Logitech and Skype working together to optimize their codecs and drivers, often at some fairly basic levels to achieve a sustainable high quality video experience. Skype had set initial goals of having a sustainable user experience that could be achieved by a reasonably broad base of Skype users: 640 x 480 @ a sustainable 24-30 fps outcome over an entry level broadband connection (384 kbps). They tested out many webcams on the market to see if there was potential to meet this requirement; nothing worked.

Then Logitech provided a demonstration of a prototype QuickCam Pro 9000 while it was still in development; they had finally found a camera that had the potential to deliver the sustained quality and frame rate in a consistent and reliable way. At that point they launched a co-development effort involving Logitech, On2 and Skype to optimize the codecs along with the capture and rendering software required. They also found it necessary to specifically optimize for real time video conferencing scenarios involving mostly “stationary talking heads” in sustained lighting situations and perhaps people walking into and out of a frame as opposed to the requirements for full motion broadcast video such az YouTube movies. This allowed them to cut back significantly on CPU utilization amongst other modifications.

“The result is that we have certainly arrived at a state-of-the-art situation in terms of coding, capture at the sending side and rendering at the other side”, stated Christensen. Amongst other issues Skype and Logitech had to deal with CPU utilization management, low light conditions, image sharpness and intelligent adaptation to varying network conditions (especially at the end points) to deliver a service that could work at a minimum 384 kbps bandwidth. While the released service reduces the wide variability of outcomes seen with other webcam configurations and provides a fairly consistent result, they are still working on issues such as better and more intelligent network utilization but they feel they have the camera, driver and coding issues well under control.

The Complete High Quality Video Experience

Over the past few days I have tried out the High Quality Video with almost all my Skype calls, even if the other party did not have a webcam. While the sending (capture) end of the call requires relatively new hardware (Dual core processor, Logitech webcams with Carl-Zeiss optics) the receiving end can view High Qualty Video even with higher speed single core processors and have an excellent video viewing experience (based on comments of several viewers).

The real challenge was to find a situation where both parties met the requirements for High Quality Video; yesterday evening “Phone Bay” Dameon Welch (who normally uses a Mac) had finally put together a Windows configuration, using one of the Logitech Carl-Zeiss cameras where we could truly test bi-directional video calling over reliable network conditions. (In another post I’ll talk about how testing for High Quality Video is resulting in the exposure of underperforming DSL services.)

Display Options with High Quality Video

Launching a call: once connected the receiving party sees the window on the left in the active call tab of the Skype client; after about 30 seconds High Quality Video has been established. The promotional bar at the tope goes away after a minute or so. The white logo in the upper left appears when the frame rate exceeds 24 fps; why this particular number is a question we have put Skype. Using the “technical call info” we found that, while occasionally the frame rate would drop to, say, 12 – 15 fps, the picture quality did not deteriorate noticeably. Certainly a crisp, sharp picture, moving the head or hand across the viewing range would not result in “shadowing” or other artifacts, even below 24 fps. The “camera” icon on the left in the bottom frame allows you to capture the picture; in the resulting captured image window two mouse clicks trigger a “file transfer” of the captured image back to the other party while the image is also stored in your “My Skype Pictures” folder.

High Quality Video with Call Management Options

Above is a “Video in Window” image (reduced from 640 x 480 to accommodate the width available in this post). While not having the logo due to insufficient frame rate (~ 15 – 20 fps) it represents the quality of video image we saw. Most importantly we did not see any “shadowing” if he moved his head or put up his hand and raised his five fingers. On the other hand this image is an example of the “intelligent adaptation” inherent to the Skype software at work, where Skype will adjust to both CPU utilization and changing network conditions (jitter, return time, etc.) such as to maintain a high quality picture even when not working above 24 fps.

CPU utilization management is one feature of the new Skype video where the software is monitoring CPU usage such that Skype video does not consume all the CPU resources. In one situation where I found the video “capped” at sending 15 fps, simply turning off my SlingPlayer (which itself was using about 2.5 Mbps of bandwidth via an internal LAN connection to my SlingBox) allowed the frame rate to increase above 24 fps to invoke the High Quality Video logo on a sustainable basis.

Full screen video at 1650 x 1080 gave again a good picture, maybe with a bit of pixelation in going from 640 x 480. In the SightSpeed comparison tomorrow I will comment on the “intense” room light above Dameon’s head and how the Skype video adjusts for the saturation such an intense light can create.

Checking out the "close-up" focus with a High Quality Video webcam

Finally an image that demonstrates some of the optics of the camera: close-up of a Pokemon card showing both how the auto-focus feature adjusts and the quality obtained even when an object is only 4 to 6 inches from the camera. And in my image at the lower left I had reduced the room lighting to one 50-watt recessed “under-the-shelf” lamp above my work surface, yet Dameon was able to distinguish the stripes on my shirt. This is the Logitech “Right Light” sensing in operation where it can pick up images in very low lighting situations. (And the High Quality Video logo during this conversation had held at this point for over 15 minutes.)

Clearly Dameon and I agreed that Skype’s High Quality Video is a winner and provides, in hardware and software configurations meeting all the requirements, an excellent user video experience. The issues here include:

• Skype’s High Quality Video, as a free service, represents one more threat to the personal communications segment of business video conferencing, even at the enterprise level. Business model disruption at work again.
• Having enough Skype users using the Logitech webcam to take advantage of the Carl-Zeiss optics and driver optimization. Dual core processor PC’s have now been on the market for eighteen months and become the entry level standard; the new Logitech Carl-Zeiss optics cameras are priced at the same level as their previous generation webcams.
• Ensuring a good quality Internet connection at least meeting the minimum 384 kbps speed but, in subtle ways, High Quality Video works better (for instance ramps up to the desired frame rate faster) on higher speed connections.

Dameon’s post; (Link to come when available)

Tom Keating and Rich Tehrani have done some testing as well:

As always, Skype has over-delivered on their free offering, providing superior functionality at the bargain basement price of zero dollars. Obviously you will need a new video camera and possibly a new pc to take advantage of the highest quality Skype video yet but these seem like small sacrifices to make when you consider you will not have to pay a recurring service fee to videoconference at far superior resolution.

This new product is certainly a win for the world’s most popular IP communications software company and moreover for users of the popular software/service.

Tomorrow: the SightSpeed comparison, working with Macs, other experiences and a summary.

Tags: Skype, High Quality Video, Logitech, Skype 3.6, Dameon Welch, Phone Boy, Jonathan Christensen, QuickCam Pro 9000, On2 Technologies, Carl-Zeiss optics

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