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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Last week Skype announced some changes to their developer program. In that post I mentioned that the only application to date where one could experience SkypeKit Desktop in action was a beta version of Trillian for Windows. Earlier this week Trillian released version 5.1 to the Skype Apps Directory.

Trillian aspires to become a single client for all your conversation, messaging and social networking activity, whether on Skype, Google, Facebook, Live Messenger, Four Square, several email services and many others. And there are versions for Windows, Mac, iPhone, Android, BlackBerry and the Web. Ideally it would replace several individual clients and be accessible across multiple platforms.

Having set up an account that has been active for about a week here are some observations:

• While it allows you to track and converse with several applications and services, each one remains siloed with respect to exchanging communications. In other words, Facebook converses with Facebook on any device but not with, say, a Google application. Skype conversations are established with other Skype contacts only.
• It is the first application that demonstrates the use of SkypeKit in a desktop application; as a result it not only supports chat conversations and voice calls but also provides support for Skype’s SILK codec providing crystal clear voice quality, file transfer and access to select audio devices.
• At the moment it does not support video calling but that is simply because Skype only released the appropriate Skype video API’s last week; there is no technical reason that video calling should not appear in a future release of Trillian.
• Voice call quality experience reflected the crispness and clarity expected of the SILK codec. On a Trillian to Skype for Windows call, the Call Technical Info confirmed use of the SILK codec.
• Trillian offers a “Pro” service where all your activity is stored in the cloud on their servers; cost is almost a “nobrainer” at $12 per year.

Trillian is well along the path of providing a single client for multiple applications and services. It runs on not only PC’s but also iOS5 and Android devices. Its Pro service allows you to track all your conversations on any of these devices. However, Trillian for Mac does not yet have any Skype support (even in a beta version) yet the SkypeKit API’s are available. One cannot expect Skype support any time soon on iOS5 and Android devices as Skype has yet to release any API’s for working with these devices.

Some screen shots:

Trillian for Windows 5.1 Preferences | Accounts screen provides an overview of how it may be set up:

The main Trillian menu showing all the applications and services to which I have logged in along with an example of my Twitter feed:

All the “Contacts” menus were compressed to demonstrate the various options available for messaging. Double clicking on any of the social networking accounts brings up the relevant feed in a separate window as shown.

As shown in the menu at the right Trillian is a good way to find a Contact’s “current” status on all their social networking and messaging applications. Simply filter down with a (partial) name and you get this. In this example Boston is online in Skype, GTalk and GMail and Facebook while Alex is offline in both.

Note that, while logged in, a Contact appears under the appropriate messaging application but once logged out the Contacts are all relegated to the Offline Contacts category. Also note the icon beside each Contact name to identify the relevant messaging application.

With Google applications, logging in and out can result is some strange identification such as “gmail.51AC27DE”. It simply indicates, in this case, that the contact can be accessed via GTalk or GMail simply when s/he is logged into either. In fact, this also happened with someone who contacted me through the new Google+ chat feature where the identification under Google Talk starts with “TalkGadetC85….”.

With Trillian open or running in background you also have the option to receive small notification windows at a designated corner of your desktop as a feed is updated or an IM message is received. This can be annoying and distracting; it requires some discipline to ignore it. There are options in the preferences for turning these notifications off.

During a Skype voice call the user interface contains all the features associated with Skype calls:

One final observation: when you go to Task Manager | Processes you see this when SkypeKit is being used:

Small footprint relative to Skype (which was also open when this screen capture happened). As a matter of interest trillian.exe is using about 29,000K of memory. But this is without any video support; it will be interesting to see any change once Skype video can be accessed via Trillian.

Bottom line: Trillian is certainly well down the road to becoming a universal messaging and social networking client. And it gives an initial feel for how SkypeKit can be deployed in a desktop application. For those who use multiple applications it can become the default IM/social networking client; in fact, “Boston” in the example above has done so as he follows both Skype and Facebook for chat. Currently he still needs to open Skype for video calls.

Check out the Skype App Directory to download.

The Big Brother feel: And if you were wondering where Dan York is active as I write this (he had Google+ open in two browser windows):

Related articles

• Is Skype Soon To Release New APIs? Skype Renames Public API And Extends “Plugged into Skype” Partner Program (disruptivetelephony.com)
• Whither Skype Extras III? On the Skype Store Apps Page (voiceontheweb.biz)
• Skype desktop SDK to bring video calling to third-party apps (arstechnica.com)

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

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

Other notable features include:

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

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

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

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

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

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

Yesterday Skype released the “Gold” or “user” version of Skype 5.5 for Windows. Many of the features, including the Facebook integration, were discussed in Skype for Windows 5.5 beta: First Impressions with Facebook Integration and Skype for Windows 5.5 beta: The Call Bar. In the final release these have been enhanced; at the same time Skype introduced some amusing new emoticons – some in the emoticon table for the chat message; others are “hidden”.

As for the complete new feature set, according to Raul Liive, Skype’s Beta Program Manager, it includes:

• Skype to Facebook instant messaging (enhanced from beta)
• New and updated emoticons (new)
• New login experience
• Improved call controls (modified from beta)
• Improved video calling reliability (yes!)
• Simplified installer flow (only three splash screens)
• Avatar selection improved
• Video snapshot capture improvements
• Changed group conversations profile area:
• 
• Plus several bug fixes

Facebook Enhancements: In the beta there was little to identify whether you were in a chat session with a Contact’s Skype chat or Facebook chat. With this release, the Facebook icon appears at the top of the conversation pane. However, confusion can still arise. In the Contacts pane “Recent” tab there is no way to identify whether one would be communicating with the Skype chat or Facebook chat. Product management is probably conflicted because they also want to show the contact’s presence information … maybe a blue icon for Facebook chat presence would help.

Notice also that if you are in the Contacts Facebook chat conversation, the call bar only allows you to call PSTN numbers (via SkypeOut) but not place a Skype-to-Skype call, as would be expected. You can still set up a conference call and monitor your hardware and network conditions via the call bar.

Finally the Facebook news feed content has been moved to the Skype client Home Page tab (no longer a separate tab) but still continues to show the profile pictures (avatars) for the most contacted Contacts (either through calls or chat sessions).

• When you enter a Mood Message on the Home Page tab, there is an option to share the message on your Facebook news feed.
• Running your cursor over any of the Skype profile pictures along the top row or a Facebook message will bring up a Call button which can launch either a Skype-to-Skype call or a SkypeOut call with the Contact.
• You can “Like” a Facebook message and/or add a Comment

It will be interesting to see how the various calling services evolve in both the Skype client and Facebook itself as Skype’s integration into Facebook deepens beyond the initial Facebook Video Calling introduced three weeks ago. Dan York adds his comments on the implications of the Facebook Chat integration in Skype Opens Its Walls A Bit? Lets You IM Facebook Users Just Like Skype Users.

Emoticons: not something I used a lot but I can see using them more often; when appropriate in the context of a chat session I might use only a few of the emoticons. However, today Skype introduced several new emoticons as shown on the right. Most amusing is the “wfh”, a hidden icon that I can see many users in today’s virtual commuting world having an association with (although more often in their Skype Mood Message).

Skype has several hidden icons, as shown on the left – sometimes called “Easter eggs”. I’ll not give the shortcodes but many of them can be implied from the name. “Working from Home” is very dynamic rotating between the two images shown in this graphic. For those who are totally puzzled and frustrated there is a hidden “wtf” button.

Suffice it to say that these icons have created much discussion and amusement today. Skype for Mac’s Chief Whining Officer, Dan York made himself heard arising out of our musings earlier today when the release was first announced. Let’s hope they appear in a forthcoming Skype for Mac release. Actually both sides of the conversation need to have Skype for Windows 5.5 “Gold” release in order to see these emoticons properly.

The Call Control Bar (or Call Navigation Bar) has been modified slightly. Most importantly it continues to offer the Call Quality Info feature – perhaps its most useful feature where you want to monitor and modify conditions during a call. Also very useful is the PopOut window during a video call which allows you to watch the video image while using other applications during a call.

And, talking about Video, over the past two weeks I have done a few Skype Group Video Calls with up to eight parties. Where this group had previously used a service where only the speaker’s video appeared (it was really a “push-to-talk” service) the dynamics of the group call change entirely when you have the many “ad hoc” features of a Skype Group Video call – chat window, identification of who is speaking, monitoring the network conditions .. even the network connection recovery feature has helped a few times. And, as it should, the technology stayed in the background relative to the conversation. (The call resulted in at least one Skype Premium subscription being picked up.)

Oh, and there’s lots of flexibility in sizing and placing the various participants’ images. As Raul noted in his post reference above:

In this version we have made numerous ‘under the hood’ updates to our video engine to improve its reliability. We have reduced the amount of graphic card resources needed for video calls and improved support for older cards, especially for users with SiS graphics cards.

Full disclosure: the Skype Group Chat is being hosted on a quad core PC with a 1.7 Mbps upload speed on the Internet connection.

Bottom line: Skype for Windows 5.5 “user release is a winner, most importantly because the client and technology is almost totally transparent to the conversation. The Facebook integration remains optional as to whether you use it (you simply can either not log into Facebook or log out of it if you find it not satisfactory). It still needs a bit of User Interface work to more readily identify whether you are chatting via Skype or Facebook. The emoticons can add some fun and excitement to the conversation (an picture is worth a thousand words sometimes) and have some amusing new additions. But experiencing the robustness of Skype Group Video Calling is perhaps it most innovative feature in terms of user benefit (even if Skype for Windows is still awaiting inclusion of the screen sharing feature recently introduced in Skype 5.2 for Mac).

Being the “Gold” or “ user” release, Skype for Windows will probably auto-update at some point. However, if it does not or you want to try it out now go to Help | Check for Updates or click here to access the download.

By the way notice that the Help Menu now includes a link to Skype’s Heartbeat page – not sure if this is new but worth drawing attention to, as one qick check on the service status. Don’t know if this arose out of the comments re Phil Wolff’s “Heartbeat” suggestion reference by Tony Bates in the Skype Journal interview at CES last January.

Release notes.

Related articles

• Skype for Windows version 5.5 update adds more Facebook features (digitaltrends.com)
• Facebook Video Chat – Powered by Skype: First Impressions (Voice On The Web)

While visiting relatives a few weeks ago I had the chance to participate in a Skype call with a remote family member. While they were using Skype for Windows, this suggestion applies to Skype for Mac also.

Basically both parties had Skype open during a video call when I hear one party say, “I’d like to put some information in the chat but I guess I can only do that after the call.”

They did not realize that you can carry on a chat during a call since the default is for the conversation pane to bring down that big blue-black blind that covers the text dialogue with participants’ avatars. Here’s a visual:

During a Group Video Call yesterday, once again the participants did not realize that one could click on the Chat icon to expose the text portion of the conversation pane. It’s even more challenging with Skype for Mac 5.x since the icon is a barely visible up arrow (second icon from left in the image). One more reason to have a call bar on Skype for Mac 5.x that is consistent with the call bar in Skype for Windows 5.x.

Looking forward to what comes forth with Skype for Mac 5.x now that that the Skype for Mac style contest is near closing. But a modification to Skype for Windows 5.x that addresses this issue would also be helpful.

Related articles

• Skype for Mac 5 – From Ecstasy to Agony (voiceontheweb.biz)
• Skype for Mac 5: Returning to Ecstasy – Step 1 – Consistent Terminology (voiceontheweb.biz)

With today’s announcement of Microsoft’s intention to acquire Skype, subject to regulatory approvals, Skype has received the endorsement required to be considered a long term, viable and stable service addressing both consumer and enterprise markets.

From the press conference and press release:

• Skype will continue as a brand and an independent business unit within Microsoft. There is significant value when your brand name has become a verb in the English language (and one that translates readily to all other languages).
• Skype will continue to support “Skype Everywhere” on Mac’s, Linux, iPhones/iPads, Android phones, TV and other devices – a key requirement to maintaining and growing its current base of over 170 million active users. (This was one condition of closing the deal but execution is key; the first test will be the revamp of the Skype for Mac 5 user interface.)
• Skype has a strong basic revenue generating business; at this point it should be profitable but certainly has had good EBIDTA.
• Skype now has 170 million active users (in the past quarter), as many as 30 million online concurrently at its daily peak and growing the accounts at a rate of over 600,000 per day.
• Outlook is a key initial application for integration into current Microsoft products; Microsoft Lync will be taking advantage of Skype’s underlying technology where appropriate and feasible.

My initial thoughts:

• Keep in mind that Microsoft has bought a communications software company; one of the biggest challenges will be the integration of the software development activities across what has to be at least two different product management and software development cultures.
• Microsoft brings to the table a new level of business process and product management expertise from which Skype will benefit significantly.
• Only Microsoft has the resources – technical, product and business – that can be leveraged to justify an $8.5B buyout price (and give the current investors ~150% return on their investment over 18 months). With opportunities to enhance Office products, add technology to Microsoft Lync and complement other collaboration product such as the Sharepoint platform, they can readily get their investment back within a few years.
• Skype has found a permanent home.
• Skype can now focus totally on product and service development without the distraction of seeking financing (and the associated endorsement).

Some questions:

• How will the two companies’ instant messaging services be brought together? Skype chat offers a richer chat experience, especially given the ability to rapidly escalate to a superior voice and video conversation and to provide complements such as file transfer.
• What will happen to the Skype Store and associated hardware? While Skype has supported and sold products from several hardware vendors, Microsoft’s limited hardware offering (of mice and keyboards) is sold via traditional PC hardware retail distribution channels. Yet much of the hardware has been designed, with assistance from the Skype-certified program, to take full advantage of Skype’s inherent technology.
• Skype has been attempting  to address the large enterprise market with its Skype Connect program; yet we have heard of no successes. Microsoft Lync is a large enterprise product that can probably take advantage of Skype’s inherent technology while delivering an offering that meets the concerns of enterprise communications managers. However, what will Skype be doing to support the small to medium business market – where over 35% of its users say they are using Skype in business?
• What impact will the time required to deal with regulatory issues be on the development and launch of upgrades and new products ? We were told at the press conference no road map will become available until these regulatory issues have been addressed such that the acquisition can be completed. Yet innovation, business development and product releases must continue during this period.
• What direction will the developer program take? Will Skykit survive its rather long birthing process or can Microsoft bring in developer program expertise that would finally get Skype an active developer program from which we can see results? (and from which third party developers can benefit.)
• Can we still expect to see evolution of the Facebook relationship in some way that supports real time conversations via Facebook?
• Since Steve Ballmer showed up on stage at RIM’s BlackBerry World event last week and is now deeply associated with Skype, can we expect to see a carrier-agnostic Skype client on BlackBerry devices? Or would that be too much conflict with Windows Phone?

Bottom line: while there have been overlapping products (such as Live Messenger and Skype Chat) there is so much synergy here that it’s going to be interesting to see what product evolution occurs over the next year and how Microsoft integrates an acquisition with what has become a brand onto itself. Steve Ballmer can be thankful that there was no Yahoo acquisition and that the Skype opportunity has come about with so many more obvious benefits.

One other benefit for Canadians: the Canada Pension Plan Investment Board cleared about $500MM on the deal above their initial $300MM investment 18 months ago.

Other thoughts:

• Dan York: The End of the “Skype as Bandit” Era where Dan provides an interesting  commentary on the barriers Skype has overcome, the Skype experience and the people behind Skype. Dan has blogged more about Skype than any other topic; his employer, Voxeo, lives and dies by Skype, especially the Skype chat.
• Alec Saunders: Does Microsoft’s acquisition of Skype change anything? where he talks about the impact on carrier relationships, video calling and handset manufacturers.
• Alec Saunders: Why is Steve Ballmer excited about Skype? where he provides an excellent overview of today’s Microsoft-Skype press conference and his conclusions as to why this is an excellent deal. (Recall Alec worked for several years at Microsoft.)
• Tidbits, Apple News for the Rest of Us: Microsoft to Buy Skype for $8.5 Billion “… Microsoft says it will continue to invest in and support Skype clients for non-Microsoft platforms. If Microsoft really loves us, they’ll throw out the Skype 5 interface as an initial gesture of goodwill.”
• Phil Wolff, Skype Journal: What Skype’s partners can expect from the deal and Why did Microsoft buy Skype?
• GigaOm: Steve Ballmer & Tony Bates Talk About Skype-Microsoft …

Related articles

• Done Deal: Microsoft to Buy Skype for $8.5 Billion in Cash (kara.allthingsd.com)
• Microsoft to Acquire Skype (online.wsj.com)
• Microsoft targets video-calling with Skype (theglobeandmail.com)
• Microsoft’s Plans for an Office-Flavored Skype (blogs.wsj.com)
• It’s official: Microsoft to buy Skype for $8.5 billion (seattlepi.com)
• Why Microsoft Plus Skype Is An Enterprising Idea (informationweek.com)
• Microsoft Brings Skype from Living Room to Board Room (pcworld.com)

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

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

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

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

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

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

The implications:

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

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

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

The Questions:

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

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

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

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

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

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

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• History Making Smartphone Skype Call During LeWeb Closing Session (voiceontheweb.biz)
• Traveling in a Bipolar Mobile Mode (voiceontheweb.biz)

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

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

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

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

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

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

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

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

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

The Service Architecture

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Related posts:

• Is Rogers Setting A Benchmark for Net Neutrality Policies?
• WiFi: The Real Threat to the Mobile Carriers
• Skype Everywhere: Nokia and Skype Announce Ongoing Partnership
• 3 Pushes the Envelope Once Again: Offers Obligation-Free Skype Mobile Services
• iSkoot – Providing Carrier Friendly Access for Skype Calls

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• On iPhone, Apple Still Not Allowing VoIP Calls over 3G (gigaom.com)
• AT&T has change of heart about VoIP over 3G for the iPhone (arstechnica.com)

Jaanus Kase, pictured right at eBay Developer Conference 2006, was a member of the Talinn-based Skype engineering team at the time, back in 2004, when Skype decided that they needed to create a unique Skype chat user experience. He subsequently become Skype’s most public face through his Skype blogging activity but left Skype in the summer of 2007 to pursue a degree related to human interactions with digital technology at Cargnie-Mellon.

Today he posted on his personal blog, “On Google Wave, and how we made Skype Chat”, outlining the Skype chat design exercise and many of the decisions they had to make in coming up with the instant messaging service that is available on Skype today.

So, it was somewhere in 2004 and Skype realized they need to revamp their text chat/conversation system. Skype actually had one from the very beginning, but it was one-to-one and not very nice. It did support the basic concept of queuing messages that is extensively used today as well; that is, you could write a message to someone regardless of whether they were online or not, and it would be delivered the next time you would both be online. True to Skype’s serverless architecture, the message would simply be queued in your computer.

Jaanus was tasked with leading the project. In the post he recognizes others who made a contribution and discusses the evolution under four headings:

• The Goal: “We set out to ‘fix the email problem’, and provide a convenient group collaboration tool that would first and foremost support our own organization of many ad hoc groups coming and going.”
• What’s the content model vis-a-vis people coming and going? What happens when you close the window? “I chose to make chats persistent because that is how teams work in an organization. A team tends to be consistent over time, and it is in the interest of the team that everybody is constantly filled in and knows the same information.”
• Are chats public or invite-only? How do you get in a chat and what do you see then? Answering questions such as “If you are added to a chat, do you see the whole history or only from that point onwards?” (And here he explains a major difference from Google Wave.)
• How will multiple devices/computers work?
  

  Skype’s architecture, though, was more complex than simple client-server. Everybody was a client and a server at the same time. What would “one client at a time” even mean? It would have created more problems than it would have solved. So, we realized that what were dealing with was not a messaging problem, but more of a distributed database problem. And through some brilliant engineering by Indrek, we created a system based on “synchronizing”. That is, each device signed in with a particular username has a local database of all chats, and when (re)connected to the Skype network, synchronizes the chats with the “Skype cloud”, posting messages created locally, and retrieves new ones from the cloud.

His overall conclusions:

I have not looked at Wave protocol guts, but it feels that our design and implementation was/is fairly similar to the gist of Wave federation, except that Wave is more complex, spanning multiple servers, networks and who knows what else. But all in all, you have a collection of waves, and in those, you post messages locally and retrieve remote ones, and it works quite nicely already today, e.g across multiple browsers.

One important thing that Skype and Wave do right, but that’s completely broken in Twitter, is the distribution of metadata, and in particular read/unread states. In Skype, we synchronize not only message content, but also the read/unread state, and Wave does the same. But in Twitter, it highly annoys me that there is no facility to synchronize read/unread state, and I have to read the same tweets ten times across different clients and devices.

Bottom line – especially if you are a heavy user of Skype chat – read the entire post to learn more about the thinking behind Skype chat, how it differentiates from other instant messaging products and how he feels it compares to Google Wave. And the post certainly explains the behavior I observe when logged into multiple devices.

Full disclosure: Skype Chat and the associated File Transfer probably constitutes over 80% of the author’s use of Skype. And is often logged into multiple devices (PC’s and iPhone being the most common).

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• Should Skype put Wave inside? Skype inside of Wave? (skypejournal.com)
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Last week Skype announced Skype for Linux desktop 2.1 Beta, the first new release of Skype for Linux in over two years. As a result it’s a huge “catch-up” release bringing to Skype for Linux many features that have been introduced on Skype for Windows and Skype for Mac over the past two years:

• Incorporation of Skype’s SILK codec which not only improves call quality for Skype-to-Skype calls but minimizes bandwidth usage
• High Quality Video support: VGA-standard video calling at 30 frames-per-second over a broadband Internet connection (minimum upload speed 384 Kbps)
• SMS send support (requires Skype credits)
• Chat: incorporates typing notification, message editing and other features into chat so we no longer get those “this person does not have a Skype client compatible with chat” type of messages.
• Contact groups
• Other “catch-up” details and improvements as listed on the Skype for Linux 2.1 Beta announcement post (link above) and in the release notes (link below).

Note that this is still a Beta release; it still has several “known issues”. Check out the release notes for details including details of how to make video work on Logitech Quickcam Manager and features that may result in crashes, such as accepting screen sharing from a Mac or Windows client.

The one recently introduced Skype for Mac/Windows feature that appears to be missing: initiation of a screen sharing session. The release notes indicate you may be able to receive a screen sharing session but you may also encounter a crash.

Bottom line: Finally a much awaited Skype for Linux that has most of the features of the current versions of Skype for Mac and Skype for Windows. if you’re a Skype for Linux user and have tried the 2.1 beta, please comment below on your experience. (Of course, Skype also appreciates having all bug details reported to Jira.)

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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In a story on VoIP Planet, Gerry Blackwell provides a case study of the implementation of OnState’s Virtual Call Center at CyberDefender Corp., an Internet security software and services firm.

CyberDefender’s new director of customer service, Jose Martinez, investigated a few solutions, including traditional Panasonic and Nortel automatic call distribution (ACD) systems. But in the end, Martinez chose a radical on-demand service from start-up OnState Communications, and coupled it with VoIP service from Skype.

“OnState was very competitive,” he says. “But not only was it priced right—and this was very important to us—they were able to implement very quickly.” It took barely a week to get agents up and running and trained.

Gerry goes on to talk about the cost savings over traditional premise-based and hosted call center solutions, the visibility and transparency of the call center activity in real time and the ability to rapidly scale the service as they add more staff. He then quotes OnState CEO Pat Kelly:

“Conversation management and knowing about people are the most important elements in our application,” says OnState CEO Pat Kelly. “We’re interested in phones, but the problems our customers come to us with are not really about phones.”

“We’re more concerned with understanding the business presence of employees. What can they do—what skills do they have, what kinds of calls can they answer? And what are they doing at this moment. Are they at work today? Are they free? Are they involved in a chat? Are they on a phone call?”

Read the entire article to learn more about how OnState handles calls, its integration with Skype and Google Talk, the competition (such as it is), costs and OnState’s DNA that underlies its legitimacy as a call center solution.

Bottom Line: A win for CyberDefender and a win for their customers with improved customer service and an ability to scale appropriately as demand varies over time. And a a Voice 2.0 world application where Skype is contributing to business model disruption.

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Voxeo has as its tagline “the fastest growing voice platform company”; however, with today’s acquisition of IMified, “the world’s largest hosted instant messaging application development and deployment platform”, Voxeo has become a more encompassing, “fastest growing” conversation platform company. Complementing Voxeo’s widely respected provisioning and support of hosted voice applications, this acquisition recognizes the increasing importance of Instant Messaging as both a personal and business conversation medium, especially when it comes to issues such as presence and asynchronous conversations where the conversing parties may not simultaneously be available.

Certainly Instant Messaging’s ability to combine presence and text chat has become not simply a more useful tool for personal conversations but is a more “immediate” productivity tool for informal business conversations with its ability to:

• carry on asynchronous conversations – all participants are not always available but messages are persistent
• deliver real time presence information
• in many cases, archive conversations for later reference (especially useful for URL’s, email addresses and contact information)
• eliminate the etiquette need for a courtesy “how are you?”, “how’s the weather” overhead that usually accompanies the start of any voice conversation

From the press release:

The acquisition of IMified is part of Voxeo’s strategy to enable Unified Self-Service and live Unified Communications applications that work across voice, video, SMS, USSD, IM and the mobile web. As consumer preferences drive interaction trends, IM has become a preferred communication mode, moving outside the personal realm to include business interactions. Businesses have found IM to be a low-cost, in-demand method to facilitate both customer-facing and internal communications. On average, an IM interaction is 1/10 the cost of Interactive Voice Response (IVR), and 1/100 the cost of a live agent phone calls.

I asked Voxeo’s Director of Conversations, Dan York, about whether IMified was analogous to Voxeo’s recent Tropo announcement for voice application development. He pointed out that, whereas Tropo applications are hosted on Voxeo servers, IMified applications need to be hosted on “premise-based” servers. Otherwise, with respect to issues such as programming languages supported, yes, IMified does for IM what Tropo provides for voice. Note that anyone can develop applications for free using Voxeo’s developer platforms.

Bottom Line: Combining IMified’s platform with Voxeo’s experience in supporting voice application development opens new opportunities for innovation in self-service applications. Will we see IIMR (or ICR) as an acronym parallel to IVR, for which Voxeo has built its reputation?

Other Posts:

• IMified Blog Post: Voxeo Acquires IMified
• Voxilla: Voxeo Buys IMified, Opening New Channels for Self-Service Interactivity

Yesterday’s post, SocialScope: for a Complete, But Managed, Twitter Experience, outlines why I have found SocialScope to be the most complete Twitter client on any platform offered to date. But it only runs on BlackBerry. Why? A recent interview with Ubiquitous Systems CEO Amit Kumar provided the answers.

As their initial goal the Ubiquitous team wanted to provide an application that was designed from the beginning as a mobile application. Amit described how they attempted to write an application for the iPhone but, as a result of their prototyping experience, they quickly turned to BlackBerry for one primary reason: background processing. Basically they needed an application that could continue to monitor and report Twitter feeds while using other applications on the platform. However, as they progressed Amit outlined how they uncovered additional advantages to supporting BlackBerry:

• Fundamentally full background processing changes the user experience, including how a user will interact with the application. Read your email, do some browsing, check the hockey, baseball and soccer scores; in the meantime all your Twitter and Facebook status messages, including those from makeitseven, are being pulled in for viewing the next time you switch back to SocialScope.
• BlackBerry is fundamentally a messaging device – combine a QWERTY keyboard with the vibrant half-VGA (480 x 320) display to provide a complete two way communications device.
• Immediacy: in their market research the Ubiquitous team found that users wanted no delays in getting to their Twitter messages – just switch to SocialScope and the most recent messages are there. No need to leave the application open to receive messages (as required for similar applications on the iPhone), no need to re-login. It’s just there when you want it. While the BlackBerry inherently provides “immediacy” the team also found they needed to address scaling and latency issues to ensure messages could be delivered as quickly as possible.
• Integration: SocialScope has been integrated with the BlackBerry Address book to allow instant viewing of Twitter messages from a contact’s page. There is additional integration with the BlackBerry browser and camera that allows the user to quickly post a Twitter and/or Facebook status update incorporating a URL or Twitpic picture.
• Compression: SocialScope uses compression algorithms to reduce the data transmission load by 20% to 30%.
• Battery Life: going forward their primary goal is to reduce battery drain using the recently released “push” API’s available for BlackBerry developers. Currently, when using SocialScope continuously, I do find I need to recharge my battery overnight.

In closing our interview Amit paid complements to the support received from the BlackBerry Developer program personnel as SocialScope development has evolved. This support has contributed to, amongst other results, the deeper integration referenced above.

Selecting BlackBerry as their platform of choice allowed the Ubiquitous team to deliver a unique and productive user experience which, in practice, allows one to both readily and completely manage our individual social media messaging activities.

Bottom Line:  When following any conversation application that supports Instant Messaging services such as Twitter, Facebook or Skype (via iSkoot, for example):

• the most appropriate platform, from the “immediacy” perspective, is a wireless mobile device
• full support of background processing is a prerequisite in order to deliver a real time, “it’s just there”, user messaging experience.
• the client’s user interface on the device, such as SocialScope’s tabbed UI, is critical to an “always on”, “immediate” user experience
• deep integration with the device’s basic feature set delivers extra value

SocialScope provides an excellent  demonstration of the value of managed “immediacy” when following your personal and business acquaintances in today’s “always on” world.

Question: will these messaging services eventually replace current SMS messaging services or simply contribute to a decline in the usage of SMS?

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When it comes to organizing and following my Twitter activity, I have found that SocialScope – currently in a closed beta and only available on BlackBerry – provides the most complete and most satisfying Twitter user experience. A recent interview with Ubiquitous Systems CEO Amit Kumar provided some additional background on how SocialScope evolved and their plans going forward.

Twitter started out as a way to broadcast messages of up to 140 characters via SMS to “approved” followers; however, its popularity has driven it to become a key social media tool whose messages can be followed on a desktop PC, via a web browser or on a mobile device such as smartphones. When one starts following several hundred Twitter users the challenge for the individual has become one of “how can I effectively manage my Twitter activities to my benefit?”. An ecosystem of Twitter clients has evolved in an attempt not only to provide access to Twitter on multiple platforms but also to bring some order and prioritization to one’s Twitter experiences.

Over the past few months I have been experimenting with various Twitter clients on PC’s (TweetDeck, Seesmic Desktop), iPhone (Twitterific) and the BlackBerry (TwitterBerry, SocialScope). I came to the conclusion that I wanted a client that:

• allows me to see all my Twitter messages as one viewing option
  • with minimum delay after sent
• is available on a mobile platform
• receives messages while using other applications on the platform
• supports multiple Twitter accounts
• supports Facebook status messages
• is capable of organizing my “Following” Twitter contacts into groups
• provides a search capability
  • including searches for #hashtags
• has a tabbed UI for accessing:
  • all messages, direct messages, @ replies,
  • individual Twitter and Facebook account messages
  • user-defined groups, search results
• provides a complete Profile of a Twitter User:
  • user description and website
  • view all the user’s recent messages
  • select Twitter accounts on which to follow/unfollow
  • search for all Tweets referencing the user
  • see who the user is Following
  • see who is Following the user (Followers)
• allows easy insertion of pictures (via Twitpic) and URL’s into Status Updates
• quickly moves amongst the various tabs, user profiles and searches

About three weeks ago SocialScope delivered a major upgrade to their beta version that built it out to include all the features described above. While attending a social networking workshop two weeks ago I suddenly found myself using SocialScope on my BlackBerry Bold to track all my Twitter activity as I made new acquaintances, followed the event’s hashtag and did searches on various speakers and related topics. It handled both my Twitter accounts, allowed me to organize those I was following, had a neat Search capability, provided a complete user profile for any Twitter user and eliminated the tediousness of performing key operations on a PC.

I then realized that, considering all the Twitter clients I had trialed, SocialScope provided the most complete, yet user friendly, experience. Social media messages basically have the same “immediacy” as a phone call or an email received on the BlackBerry.The convenience of having it on a a QWERTY-keyboard mobile platform with a vibrant half-VGA display had become a significant factor in coming to this conclusion.

Most importantly, however, recall that Twitter’s original ambition was to drive messages through SMS messaging; thus, the 140 character limit. This had become a huge cost factor for Twitter to the point where, for instance, SMS messaging to Canadian users was cut off until Twitter made special arrangements with at least one local carrier. (And now all Canadian wireless carriers plan to charge for inbound SMS messages.) However, SocialScope provides a much more user friendly user interface than dealing with SMS messages; a major benefit is that it eliminates the need for any SMS subscription (but will make “light” use of your wireless data plan) to access Twitter or FaceBook messaging activity on a BlackBerry.

SocialScope was the evolution of the founders’ goal to provide a client that aggregated, yet organized, a user’s social networking activity. Founder Amit Kumar and his colleagues (today they still only have a team of four plus an intern) saw lots of web-based social networking activity on the web but felt that browsers put too much overhead on the overall Twitter (and Facebook) user experience as well as on mobile device resources.

While their original prototypes were developed for the iPhone, they quickly realized they needed the full background processing capability of the BlackBerry (8xxx or 9xxx) to handle social media messaging seriously. Key to their overall design approach was the recognition that, while they are delivering a dedicated client, Twitter itself is a dynamically evolving web page which requires special handling on mobile platforms. To this end they have developed compression algorithms and are working on battery consumption issues. (More details on “SocialScope: Why BlackBerry”will be the subject of a second post.)

SocialScope alpha launched in December 2007; the Ubiquitous team suddenly found they had to limit their alpha subscribers while they dealt with initial scaling and usability issues. Their most important feedback for user interface design came from looking at usage patterns. The most common feedback they obtained was the need for messages to be delivered “immediately”. In response they dealt not only with scaling issues but also latency and connectivity issues.

At the same time they have been developing deeper links into BlackBerry features such as the address book from which one can view a Contact’s most recent Twitter and Facebook updates. When viewing a web page in the BlackBerry browser, a “Send to SocialScope” command is available to insert the web page’s URL into a Twitter Status Update window.

Currently they are working on improving group management, de-duping messages (such that messages sent to multiple accounts only show up once) and deeper integration with Facebook. They also want to add support for showing Twitter “trends” information.

SocialScope is still in closed beta with, apparently, a very long waiting list. However, the wait should not be too long; they expect to release a publicly available version at some time during the summer.

Bottom line: SocialScope sets the bar for all Twitter clients in terms of feature set and performance. It demonstrates that social media messaging and message management is best handled, from a user experience perspective, on a mobile platform. It also demonstrates the importance of having background processing for messaging activities on a mobile handset (did I say their next platform of choice would probably be Android?).

To follow: SocialScope: Why BlackBerry?

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OnState Communications provides hosted communications services that allow any size of business to operate a call center or PBX with low cost worldwide access via Skype, Skype Online numbers or the PSTN, including toll-free and DID numbers. Low monthly fees and service charges (covering inbound numbers and outbound PSTN calling) along with zero capital expenditures are the selling points that have driven evaluation and adoption across a range of businesses.

During early May OnState will be upgrading their services to add:

• a “My Account” dashboard that tracks credits and charges for services such as toll-free numbers and SkypeOut charges in real time
• OnState Mobile allows employees to use their mobile phones (such as iPhone and BlackBerry) to participate as part of a call center operation, either directly receiving customer calls, transferring to another employee in the company, or acting as a secondary support resource to a business’s core sales and support teams
• Warm Transfer and Conferencing for OnState Anywhere — A warm transfer allows an agent to speak with a new caller before transferring the original caller to provide a better calling experience.
• Outbound calling with Caller ID in OnState Anywhere. Enables calling from any device (Skype, SIP soft phone, etc) with a unique Caller ID displayed to your customers.
• Support for SIP Phones. While most calls are handled via softphones, such as the Skype client, OnState services now support selected Polycomm and Grandstream SIP phone sets.
• Several other service tweeks and modifications; check out the OnState blog post for the details.

OnState will be upgrading services to all their current clients over the first ten days of May. As with many other players in the economically challenged Voice 2.0 world, I confirmed in a recent interview with OnState CEO Pat Kelly that they are finding increasing demand in the small-to-medium business market for their SaaS-based services. The key selling point remains offering a disruptively cost effective way to communicate across an enterprise ecosystem comprising employees, customers and suppliers.

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Hutchison-Whampoa’s 3 service in the UK has been the pioneer in offering Skype access and other data-based services, such as SlingPlayer, at low cost. For as little as £10 per month, one could have almost unlimited Skype calling and text messaging on the Skypephone and other selected mobile smartphones. Already 3 has said they are delivering over 1.5 million minutes of Skype-to-Skype calling per day. However, earlier this week 3 announced they were pushing the envelope for free Skype calling even further.

Effective May 1, 3 subscribers will be able to purchase a special 3G SIM card which will allow the user to download Skype software and start making calls to Skype users worldwide with no minimum monthly payment obligations. Come summer 2009, 3 will expand the availability of this offer; from the same press release:

During the summer, 3 will expand its offer making it possible for anyone with a compatible unlocked 3G handset in the UK, to take advantage of free Skype calls, whether or not their phone is from 3. Anyone that wants to talk on a mobile for free will be able to use a Skype-enabled 3 SIM to make and receive totally free Skype-to-Skype calls and to use Skype’s instant messaging (IM).

Basic cost of the SIM will be £1.99; revenue will be generated via associated pay-as-you-go or 3’s other mobile phone services contract offerings. In addition new subscribers will have to purchase one of the supported phones, such as a Skypephone 2 (or, later this year, a new Skypephone 3 which is speculated to have a QWERTY keyboard).

According to 3’s website, their focus from the beginning has been to provide services built around their purpose-built data network using the HSDPA protocol. And, of course, any VoIP-based service requires a high speed data network. However, questions remain:

• What will be the impact on handset battery life? This has been a major factor hindering the provisioning of VoIP over 3G networks.
• Will this service be available to 3’s UK customers when they are roaming in other 3 countries, such as Austria, Denmark, Italy, Sweden and Ireland?
• Which smartphones will be able to take advantage of the expanded offer coming in the summer? Does this mean i can bring my BlackBerry to the UK, buy the 3 SIM, and have free Skype-to-Skype calling while in the UK (or even other 3 countries) and using 3’s service for other calling, messaging, email and browsing requirements?

A hint of 3’s business reasoning is given further down the press release where they provide some information on existing services:

3 UK has found that regular Skype users:

• Are less likely to churn than non-Skype users
• Use more traditional voice minutes than non-Skype users in addition to calling their Skype contacts
• Use Skype IM, but also send more SMS than non-Skype users
• Are more likely to browse the internet on their mobile
• Are higher margin customers
• Are twice as likely to access social networking sites as non-Skype customers

In addition, with the support of SkypeOut calling from 3’s various Skype-enabled phones, one can expect that 3 will share with Skype revenues resulting from SkypeOut minutes generated by this change in services.

3 is also lobbying within the EU for reduced termination charges and “fair pricing for roaming”. In practice they are really pointing out, very pragmatically, that a wireless carrier can generate significant customer recruitment levels, satisfactory revenues and improved ARPU when adopting Skype support with properly structured services.

Which raises a cost advantage of 3’s obligation-free Skype-to-Skype calls and chat messaging: there are no termination charges involved. Skype’s secure peer-to-peer technology has essentially eliminated the need for termination charges along with the associated business development, call record tracking and billing infrastructure costs.

At last fall’s Mobilize 08 Conference organized by GigaOm, 3’s Frank Meehan, Director & GM, 3G Handset and Application Group, stated (hat tip to Om for the reminder):

The Skype phone makes us more margin than any other phone in pre-paid with the exception of the iPhone. About 65 percent of the UK market is prepaid and only 5 percent of those are using data. Smartphones are not as relevant. We also have a massive churn in prepaid in all markets where prepaid exists. So we basically told people, if you spend 10 pounds a month and top it off every month, you get Skype for free. That’s driven incredible loyalty to the device. We have a huge level of top-offs and we’re seeing growth on voice and text on those devices.

3 is certainly providing wireless carrier leadership in the adoption of Skype as a mobile accessible service, demonstrating that there is a business model for the wireless carrier that not only drives subscriber recruitment but also can generate increased ARPU (and revenues) while lowering the overhead costs associated with supporting international calling. Would it be fair to also say that it has the potential to drive down international roaming charges?

Other posts:

• GigaOm: GigaOm: 3 of UK Marries Itself to Skype; Shakes Up the Mobile Market
• Andy Abramson, VoIP Watch: Skype Winning With 3? Actually It’s 3 Winning With Skype

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I follow several forums about Skype, for instance at LinkedIn and on eCademy. Recently I have noticed a thread on the LinkedIn Skype for Business Group asking about using Skype without a PC. While eventually I intend to have more detailed information in response to such a question in the reference content on this site, let me summarize what is available as of today. The sales channels for these products are largely through the Skype Store (which is country-specific). Unfortunately several players who had good offerings have abandoned their Skype hardware offerings over the couple of years; however, we are starting to see the emergence of new devices.

Mobile Phones

Update: March 1, 2010: Access to Skype on mobile smartphones has evolved to several platforms; there are several posts that provide an update to what is stated below:

• Skype for Mobile – Now Focusing on a True Skype User Experience includes a summary table of options, as of March 1, 2010, for running Skype on mobile smartphones.
• Skype for iPhone: Now Legally Available for Canadians

Update: May 30, 2010: Skype for iPhone now works over GSM 3G/HSPA+ networks:

• Skype for iPhone 2.0 Released: 3G Skype-to-Skype Calling to Require a Fee
• Skype for iPhone 2.0: The End User Experience
• Skype for iPhone 2.0: The Commentary and The Reality

Obviously the most popular is Skype for iPhone. With over 1 12 million downloads since its introduction in late March 2009 earlier this week, the major caveat is that you need either an iPod Touch (with a microphone accessory) or iPhone. In both cases you also need to be at a WiFi access point to take full advantage of Skype’s voice and IM features; however, you can also use Skype IM (presence and text chat) on the iPhone using a carrier’s 3G or 2G/EDGE data plan (but not voice). Currently Skype for iPhone is not available in Canada pending resolution of a patent licensing issue. Skype for iPhone does require that the application be open in order to received messages and Skype calls.

Skype Lite for Nokia has been replaced by Skype for Symbian.

Skype has also been developing Skype Lite for a wide range of Java-enabled phones, including the Nokia N- and E-series phones. Again one can use Skype IM (presence and text chat) for those phones that support a WiFi connection (such as many of the Nokia N- and E-series smartphones). But for voice, one needs a carrier for which Skype is setting up arrangements in ten countries. Skype announced earlier this week that a Skype Lite for BlackBerry will be available in May, 2009.

As mentioned in the first update post above, Skype for Windows Mobile has been withdrawn.

Skype for Windows Mobile has been available for several years, recently released version 2.5 and demonstrated the Skype for Windows Mobile 3.0 beta. They recommend its use via WiFi access points; however, its use on a Windows Mobile smartphone over 3G may have performance limitations, especially with respect to battery life.

If you are in one of the nine countries served by 3 as a carrier, you will find the Skypephone 2 available as well as a few other devices that supports Skype operation. Later this spring Skype will appear embedded into Sony Xperia X1 and new Nokia smartphones.

There are two third party solutions that I have used quite often: iSkoot (BlackBerry, several Nokia smartphones) and IM+ for Skype (BlackBerry, iPhone/iPod Touch, a few Nokia smartphones). On the BlackBerry they can take advantage of the inherent background processing to allow Skype chat sessions to remain active while executing other applications; they also require both a voice and data plan (2G or 3G GSM) in order to complete voice calls; chat sessions are supported over a WiFi connection.

There are several other third party offerings which provide Skype access, including Truphone (iPhone, BlackBerry, some Nokia models), Fring (iPhone, some Nokia) and Nimbuzz (iPhone). Suffice it to say that, while one can carry on conversations via these services while dealing with user interface, performance and/or call quality issues, the best service level is achieved from a service where Skype has full control of the software and network connections.

Skype’s strategy for mobile was recently outlined by Skype COO Scott Durchslag.

Dual Mode Phones

About two years ago several hardware vendors introduced dual mode PC-free phones that allow you to connect to both Skype via a broadband Internet connection and the PSTN. However, currently these devices are undergoing a transition as Skype restructures, the only phone that is readily available today is the Philips VOIP3211 which can be found for several countries via the Skype Store. Update, Fall 2009: The only dual mode phone that is readily available as of fall 2009 is the RTX 3088 Dualphone; feedback here. The one caveat for these phones is that they support voice and presence but have no chat capability.

IPEVO also offers their Skype Desktop Phone S0-10, which only provides Skype calling over an Ethernet connection into a router.

Skype Video Phone

I recently received an evaluation ASUS Eee Videophone AirGuru SV1, which provides support for both Skype voice and Skype video calling along with presence information (no chat). My few conversations with it have been quite satisfactory and the user interface provides easy setup of calls. Basically all operations are done via a five-way trackball where you have up/down/right/left to navigate and a central push button to perform an action. While it is basically a video speakerphone, there are headphone jacks on the rear.

To get started you simply plug it into an Ethernet port on a router or switch with a minimum broadband Internet service and enter the setup routine to provide your Skype account information. Optionally it also supports WiFi access if you are not attached via an Ethernet connection.

WiFi Phones

These are again available via the Skype Store with models provided by Netgear and Belkin that support voice and presence. I have never been a fan of the Skype WiFi phones, especially from a price/performance perspective, as they have very limited functionality and have found them to have battery life issues amongst other problems. But some people seem to like them. More recently IPEVO has offered their WiFi Phone for Skype S0-20.

Others

Skype can be found on the Nokia N800 and N810 N900 small tablet handsets; Sony Mylo and some Sony PSP models. However, these are examples of embedding Skype into a device as part of Skype’s “Skype Everywhere” strategy where conversations become one more feature of a specialty device.

Conclusion

“Skype without a Computer” is inherent in Skype’s new “Skype Everywhere” strategy recently outlined by the new Skype executive team. With the current restructuring of Skype where more mature business processes are being introduced to incorporate product marketing, build partnerships and spread the availability of Skype across many platforms, we can expect to see new “PC-free” Skype hardware coming out in the future. In their visioning statements, beyond mobile devices, they point out that we may see it attached to TV sets, automotive dashboards and embedded into other hardware.

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