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

Experience Skype WiFi

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

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

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

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

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

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

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

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

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

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

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

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

The new Skype Access provider partners include:

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

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

Related articles

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

Over the past couple of days I have had the opportunity to complete calls using Skype for iPhone 2.0 over 3G to contacts in the U.K., the U.S. and Spain, not only while staying in one location but also at 100 km/hr crossing through several mobile phone cells along Canada’s busiest freeway that recently was equipped with a 3G/HSPA+ service by Rogers. Some of the outcomes:

Launching the application

First, we are still dealing with an iPhone that does not allow multi-tasking but Skype for iPhone only serves to build the anticipation of iPhone OS 4.0 and its multi-tasking feature. As a result you currently must be logged into the application to receive a call; not only that, each time you log in, it can take 30 – 45 seconds for your Contacts’ current “presence” status to appear. (And you need to ensure your own status is set to “Online”.)

“Near CD-quality voice”

Once the presence information is current, however, select a contact, make a call, get an answer and start the conversation. What follows is a recording of one of my first calls where Voxygen’s Dean Elwood set up a three party conference call via Skype for Windows on a PC. (Skype for iPhone itself cannot set up a multi=party conference call.) Pamela’s Call Recorder was used to make the recording. Listen for yourself.

Dean makes an important point during the call about how Skype’s SILK-based superwideband audio makes it much easier for him to understand all the various and several English accents he needs to deal with in the normal course of his business activity.

Note that, in order to maintain the audio integrity of the recording, no audio editors were used to filter out “ah’s” and “eh’s”, etc.

Moving Along the Freeway with Skype

First, for all those concerned safety advocates, I was not driving my car during these calls.

From Ontario’s 401 freeway (the main route between Toronto and Ottawa/Montreal) between Trenton and Cobourg, Ontario I made a 25 minute call to Andy Abramson who was on the I-5 in and around San Diego, California. At one point both sides had speakerphones going such that we had a four-party car-to-car conversation.

While providing the same crystal clear voice quality reported yesterday, the call also was sustained as we both passed through several cells of our respective networks (I could see the cell towers alongside the freeway). Let’s just say we were both traveling at or near the legal limit and there was no degradation of voice quality.

There was one point where we noticed a bit of fuzziness (along with an appropriate warning on the call quality indicator) but it recovered very quickly and the call connection was not lost. The other issue was not really a Skype issue but the volume had to be turned up a bit to overcome the automobile’s inherent background noise.

Battery Life

It’s still an issue. I found that leaving Skype for iPhone open continuously for over three to four hours would drain the battery. A significant challenge for iPhone OS 4.0 will continue to be battery life. It’s the one significant shortcoming I find with respect to overall iPhone performance.

Data Use

From initial observation, it would appear that about 2 minutes of a voice call will take up 1MB of data transfer. Simply a guideline but it can start to get a handle on what your data costs will be. I still would only recommend using Skype for iPhone over WiFi when roaming outside your home network.

Bluetooth

Andy Abramson reports that his attempts to use a Bluetooth adapter while making a Skype for iPhone call have failed. More investigation and feedback required.

Bottom line: Skype for iPhone 2.0 has brings new performance benchmarks to the mobile voice calling experience, especially when it comes to voice quality. However, lack of background processing and improved battery life management still make it questionable as to whether one would rely totally on Skype for iPhone for all one’s mobile calling.

But it’s impeccable for making outbound calls to all your Skype contacts where you as the user have total control of the calling activity. And, of course, the call cost is also right.

It’s an Always-On Life

But the most difficult aspect to become accustomed to, especially as I was driving along the freeway today, was to be aware that one could always be connected to Skype whether via a WiFi access point or a wireless carrier, provided the battery had not been drained. I could follow Skype chat conversations, see others’ presence information and mood messages and, if appropriate, make a (currently free) voice call. There’s a psychological shift in thinking that has to be made.

Note:: Ontario has recently introduced laws that prohibit texting while driving as well as making voice calls other than handsfree calls. And the stats showed that texting while driving can be as dangerous as impaired driving. Pull over to the side of the road or turn over the driving to another party if you absolutely have to engage in or continue “that conversation”.

What have been your experiences with Skype for iPhone 2.0? Put them in the Comments and join the discussion.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

So what measures can I recommend?

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

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

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

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

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

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

So here is where I use each device:

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

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

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

A few comments:

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

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

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

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

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

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

And where does he see the disruptive uptake?

…. Within two key categories:

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

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

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

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

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

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

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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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Having just come out from behind the rocks of West Virginia and spent all yesterday traveling, I arrived home to find that it has been confirmed that Skype will be launching an application on the iPhone tomorrow. The major point coming out of the announcement, aside from the conversation feature set, is that Skype for iPhone will require WiFi access to the Internet. A masterful stroke on Skype’s part, especially after my experience over the past ten days that involved 3200 km of driving, mostly on U.S. Interstates, and nine nights of lodging. Some key bullets to back this up:

• AT&T is just not a reliable 3G wireless network – full stop. I have reported on this previously involving trips to California and Nevada; Om confirmed it recently when he switched from iPhone and BlackBerry Bold on AT&T to Blackberry 8900 Curve on T-Mobile.
• When the best I can find is one bar (and not always) at a major tourist destination with over 2 million visitors per year, Skype could not rely on AT&T to deliver anything close to the current experience Skype and iSkoot are having on the 3 networks in nine countries.
• T-Mobile actually had more bars than AT&T on Hilton Head Island but only two at best; of course an iPhone will not work over T-Mobile.
• AT&T coverage along the Interstates varied from zero to full 3G, but with the latter only near major cities (as to be expected). It was the intermittent 2G/EDGE coverage along the Interstates that was very frustrating. (I can drive along Ontario’s major freeways with no service interruptions, whether 2G or 3G.)
• WiFi access points are becoming pervasive. Every hotel along the route was advertising high speed Internet connectivity (usually WiFi); most restaurants also had WiFi access, including one at a New York State Thruway rest stop. Our primary lodging had individual access points for each unit.
• I used my Boingo account at one overnight hotel for access without a hotel WiFi charge.

My WiFi experiences during the week (all at no additional cost):

• the major connection for both my Windows laptop and MacBook at our accommodation
• Making Skype video and voice calls from the Mac Book
• Downloading and installing the final release of SlingPlayer Mobile for BlackBerry
• Updating iPhone applications
• Following an NHL hockey game of interest via SlingPlayer on my BlackBerry Bold using my NHL Center Ice cable subscription
• Making Skype calls and PSTN calls via Truphone for iPhone (but with echo cancellation issues on the Skype call and termination issues when calling the PSTN).
• With Boingo, avoiding additional WiFi charges at one of our overnight stops during the trip down.

Not only did WiFi make these applications possible; there were no (Rogers) roaming charges for a Canadian traveling in the U.S. At $6/MB (and when I had an AT&T signal), I limited my use on wireless GSM networks to checking GMail headers, following Twitter via SocialScope and, during our trip home, finalizing a hotel reservation as we neared our overnight destination (and this exercise involved waiting for coverage at some points as we traveled along the I-79 through West Virginia’s mountains).

Boingo will be a major benefactor of this trend; their relationships with major hotel chains, airports and restaurants contribute to this trend and provide an account that minimizes charges. Having clients on Macs, Windows PC’s, Nokia smartphones and, currently in alpha phase, BlackBerry again improves the user experience making the technology transparent to the calling protocol.

One difficulty continues with WiFi: access at high usage locations such as conventions where capacity limitations come into play.  Ultimately it reinforces that WiFi still needs to address scalability issues.

Bottom line: WiFi is stealthing its way significantly into the wireless picture for fixed point access to the Internet by road warriors. Of course its speed and robustness features are additional benefits.

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Yesterday Om put up a GigaOm post, Skype on iPhone to be released as early as next week. While it’s still an unconfirmed “exclusive” rumor (and you can safely bet the eBay PR hounds are looking for any leak source if this is a leak), it does raise the issue of what we should expect the Skype experience to be if Skype for iPhone is released (even as a beta). It also raises the question of what is happening with the overall Skype on Mobile strategy outlined earlier this year by Skype COO Scott Durchslag in a blog post.

What I can confirm is that at the CES press conference back in January, Skype COO Scott Durchslag did say in an interview that Skype was looking to have Skype for iPhone at some future unannounced date. And I did meet the Skype for iPhone product manager at Skype’s CES 2009 reception; he was relieved that he could now at least give out his title, if not details. At the same CES press conference, Skype demonstrated calls made using its Java-based Skype Lite which has been in various forms of beta since last spring.

We’ve seen several attempts at accessing Skype on an iPhone(Truphone, Nimbuzz, Fring). I have also been using iSkoot on the BlackBerry (and at times Nokia N-series) smartphones as well as IM+ for Skype on various devices. Recently I have been able to check out the Skype IM feature of Skype Lite. Using and trialing these services have provided lots of details about feature set requirements for a fully-featured Skype user experience. As a result I have established some criteria for an acceptable “Skype on Mobile” experience.

1. Skype Contacts: bring up a user’s complete list of Skype contacts (regardless of number of contacts); be able to find a contact by typing in the first few letters of a name, see the appropriate real time presence information; launch a Skype chat session or Skype voice call.
2. User interface: I want to look at my Skype contacts, with presence information, and be able to hit the “green” call button on the device to initiate a call to a Skype contact. Hit the red “end call” button to terminate a call. (iSkoot on BlackBerry does this.)
3. Chat messages: I want the device to be able to monitor my Skype IM activity in background, notify me of activity and bring it up at my convenience. (iSkoot on BlackBerry does this.) I also want Skype Public Chat threads maintained as a single session; Nimbuzz treats each participant in a Public Chat as separate “contact” sessions.
4. Receiving calls; I want to be able to receive Skype calls whether I am in the “Skype-enabled” application or using another smartphone application. Receiving calls on the BlackBerry or Nokia smartphone is an option with iSkoot; with any iPhone application you must be in the application to receive a Skype call.
5. Native address book integration: I want to be able to find a contact in the device’s native address book and be able to make a SkypeOut call to a selected Home/Business/Mobile/Other phone number. Truphone has always been diligent about including native address book access; iSkoot also provides this in its more recent releases.
6. Mood message update: while not critical, it is definitely desirable to be consistent with a fully featured Skype service.
7. Battery life management: I want to have minimal battery use; iSkoot demonstrates that handling all the chat and call signaling activity can drain a battery quite quickly, especially if on a WiFi connection. Using BlackBerry’s “push” API’s is one means of addressing this issue. Battery lifetime will be even more important on any potential iPhone application; battery management, including lifetime, has been one of iPhone’s weaker points.
8. Call quality. While certainly limited by the mobile networks’ and smartphones’ inherent audio bandwidth, issues such as echo cancellation and call break-up have arisen with some services. Once again this has not been an issue on iSkoot for BlackBerry calls; however, I have found these issues to occur on calls to Skype contacts via Fring and Truphone on the iPhone.
9. Network quality: I have yet to have a good 3G network experience with AT&T; I have mentioned this in the past during recent trips to California and Nevada. Om has written about it to the point where he switched to using a 8900 Curve on T-Mobile after giving up on Bold and iPhone on AT&T. My vacation location this week only has AT&T 2G service available and, even then, it is minimal reliability. (T-Mobile 2G definitely has “more bars” here.) My only recommendation here can be, if you wish great 3G reliability and reception on a BlackBerry Bold or iPhone, move to Canada and use Rogers where 3G network availability and quality has never been an issue for me.

Here is my current Skype access on mobile situation:

• iSkoot provides excellent call quality as well as chat sessions in background (including content from sessions over the previous day or two). iSkoot’s major technical downside relates to battery drain, an issue that is correctable via newer “push” API’s. Costs will vary by my smartphone location:
  • Within the Toronto local calling area: no charge for voice or data.
  • Within Canada: long distance charges (~$0.25/minute) for voice; no charge for data. It’s still cost effective to use iSkoot.
  • Outside Canada: roaming charges ($0.95/minute in U.S.; much more in Europe) plus long distance charges make iSkoot a very expensive service. Only Skype services on 3 have partially addressed this issue in all the countries served by 3.
• Truphone’s Skype access:
  • Voice: Truphone for iPhone provides unacceptable Skype call quality (serious echo cancellation issues) but can complete calls to Skype contacts over a WiFi access point. The Truphone client must be open to receive Skype voice calls. Truphone Anywhere, which requires access to the carrier’s network for voice, has the same cost considerations as listed for iSkoot above. (To give due credit, a Truphone call over WiFi this afternoon directly to one of my iPhone contacts did not have echo issues.)
  • Chat: The Truphone client can only support IM chat sessions when the Truphone client is open. The content seen comprises only those messages exchanged while in the “current” chat session; all chat sessions are closed when you leave the Truphone application; previous content is not recallable.
• Skype for Mobile (aka Skype Lite) on Nokia E71:
  • As making Skype voice calls is reliant on having carrier relationships, I can only access Skype chat activity via WiFi; in this case previous Skype chat sessions can be recalled. Skype has announced they are working with carriers in ten named countries but no other details have been provided.

While I would expect any Skype on iPhone offering would use the “Skype Lite”/iSkoot /Truphone Anywhere architecture involving use of the data channel for chat and call signaling but the inherent carrier voice channel for voice, recall that Skype Lite is basically a Java application that has been in beta for some time whereas iPhone on Skype would require a relatively new and yet-to-be-beta-tested Apple OS/X application. On the other hand, iPhone 3.0 will address some of these issues.

Bottom line – there are many issues to be addressed to have Skype on the iPhone  maintain Skype’s reputation for providing an easy-to-use, reliable, scalable consumer service. While I won’t totally discount the rumors of Skype on iPhone, my prediction for what Skype may announce next week at CTIA Wireless: carrier agreements related to using Skype Lite:

• First announced last April (as Skype for Mobile), Skype Lite is at the point where Skype needs to announce some carrier agreements to demonstrate that Skype Lite actually has carrier adoption.
• Carrier adoption is critical to the business model for generating revenue from Skype Lite.
• It would be consistent with the Skype for Mobile strategy about which Scott Durchslag blogged during the Mobile World Conference in February.
• This is a major international conference where wireless carriers and vendors do business.

We’ll be looking forward to seeing what announcements do come out next week.

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

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

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

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

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

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

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

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

Other issues:

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

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

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

As for the infrastructure behind this service:

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

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

Update: Jon Arnold: Truphone Launches Local Anywhere Service

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While returning to the home office from my workout yesterday morning, before I started driving, I pulled out my Blackberry 8820, selected the iSkoot icon to open iSkoot (which auto logs into Skype), selected a Skype contact in the U.K., clicked on Call, heard a message asking me to “please wait while the call is completed” and within seconds I was talking to my contact in the U.K.

We talked for 15 minutes (over my nXZen Bluetooth headset for obvious safety reasons). A simple, straight forward, familiar user experience — total cost was a 15 minute charge against my Rogers wireless monthly subscription for a local call (from iSkoot’s Toronto POP to my phone). Even the callback operation itself was transparent to the user. In fact, it meets my “Truphone test” for user experience: Look up a contact in a device address book, select which phone number, press the Call button and the call is connected with no further user action.

If this sounds similar to the 3 Skypephone experience, it is. In my case the Skype button is replaced by the iSkoot icon on the Blackberry. Bottom line is that whether via 3 Skypephone or my Blackberry over Rogers a connection is readily made and there are minimal, if any, charges. And it is a very familiar user experience, comparable to making wireless calls via the service provider’s native (GSM) voice network. (Photo above: Blackberry 8820 running iSkoot and Skypephone together at Fall VON session on Goin’ Mobile with Skype.)

Since the introduction of the 3 Skypephone two weeks ago I have seen many commentaries attempting to find issues with the offering. Very simply stated the 3 Skypephone offers:

• Free Skype-to-Skype calling worldwide, reducing or eliminating international long distance charges, provided your contact is also on Skype (on any platform)¹.
• Free Skype IM (presence and chat)
• Unlimited Internet browsing

provided you contract to purchase a monthly minimum of £12 of traditional voice and SMS text messaging services from Hutchison Whampoa’s 3 Service. on an 18 month contract; the phone itself is then free. Alternatively you can purchase the Skypephone for £49.95 and do a minimum £10 monthly Pay-As-You-Go top up.

The Skypephone hardware is a quad-band GSM/UMTS² phone over GSM/EDGE 2G and GSM/UMTS 3G networks. It includes a 2MP camera and video camera along with music services including a (MP3) media player as well as a voice recorder. Think of the additional Skype button as an iSkoot icon on any other iSkoot-supported device such as the Blackberry 8xxx’s and Nokia N-series phones.

Fundamentally, the 3 Skypephone is a promotion to encourage generation of traditional mobile voice business over the 3 network. As a result there is no SkypeOut included whereas with iSkoot I can access SkypeOut numbers. In fact the lack of SkypeOut on the 3 Skypephone service will virally encourage Skype adoption by users’ contacts who are outside the 3 network service areas.

A key benefit of the 3 Skypephone to the rest of the mobile user world is that it is a pioneering carrier-supported service that threatens to be another crack in a disruption of the traditional mobile voice service business models.

Using my Blackberry I get my equivalent voice service with only the requirement to have a Rogers wireless subscription for a set number of minutes per month (I am not on contract at the moment), which I need anyway.

But there are some other comments in the blogosphere that also can affect the user experience³:

1. Having the Skype client on a server (and not on the Skypephone) means longer battery charge lifetimes for the mobile device and a more robust, carrier grade overall platform for connecting to Skype.⁴
2. Roaming on other networks is expensive regardless of your carrier. In fact, this was the number one issue discussed at a recent blogger dinner at Fall VON.
3. Should you have a Blackberry 8xxx or Nokia N-Series phone you can install iSkoot and have a similar user experience on any GSM network worldwide. In fact, 3 itself encourages the use of Skype for their X-Series customers using any of the Nokia: N73, E65, 6120 and N95; Sony Ericsson: W950i; or LG Shine U970 smartphones.
4. UMA/GAN provides an alternative path to low cost, familiar voice calling through its seamless transition of voice calls and data between GSM/2G/3G wireless and WiFi access hotspots.
5. Whether using VoIP or UMA/GAN carriers will still want to have some revenue generating plan, even if it is fixed rate. Both 3′s Skypephone offering with the promotion described above and T-Moible USA’s Hotspot @ Home unlimited use, but fixed rate, service represent the type of plan we can expect to see going forward.

There are three advantages to using the Blackberry 8820 and iSkoot:

• Having a QWERTY keyboard makes it a much easier to enter text messages, whether in Skype IM or SMS
• The WiFi inherent to the 8820 (or 8320 Curve) can significantly reduce carrier data plan usage, especially important when your carrier has no “unlimited” data plan.
• Blackberries inherently have the best battery management and charge lifetime of any mobile devices.

The only issue I cannot fully address is the Skypephone’s voice quality. Certainly the Blackberry-based call I made was limited to the <~3 kHz audio bandwidth of a cell phone and did not inhibit the conversation. Until I know the voice engine within the Skypephone and with no experience using it, I cannot comment. (Link to an experience using Skype on a mobile device with a wideband voice engine.) However, the reviews linked below speak favorably of the voice quality.

Bottom line: it’s the user experience that matters. In architecting the service its goal has to be ease-of-use, robustness and reliability along with a service plan that will be very attractive to generating customers. Using my criteria for evaluating mobile Skype services, it stands up quite well in both in terms of features, especially Skype features, and the user experience. And may it contribute to driving lower mobile user costs for both voice calls and mobile web activities.

Related posts:

• Time Online: On test: the 3 Skypephone

The other great feature of the phone is the ease of use. You sign in on the handset with your Skype account details at the outset. This takes less than a minute. Once signed on, you press a single Skype key and the screen shows all your contacts and their status, exactly as you would see on your computer. You can use Skype to chat or call them. Pretty simple.

• Technical Itch: 3 Skypephone Review

The Skype phone is all about free phone calls, and opening Skype to a whole new mobile audience, and for that purpose it does a good job. With a sub £50 price tag on PAYG it represents great value for money.

• A Primer for Skype’s Direction: Mobile Conversations

¹ Note there is a cap of 10,000 IM messages per month (333 messages/day) and 4,000 Skype minutes per month (2 hour 20 minutes/day). With a T9 keyboard you would be hard pressed to generate 100 chat messages per day.

² 900 MHz, 1800 Mhz, 1900 MHz GSM and 2100 MHz UMTS. Without the 850 MHz band, it is not suitable for North American GSM use. Yes, as evidenced by the photo above, I saw a Skypephone running on AT&T while at Fall VON.

³ Normally I would refer to a press release received by many bloggers in the past couple of days but in this case the release was quite pretentious and misinformed with the result that I don’t want to give it any publicity that it really does not deserve.

⁴ Today a very significant portion of all long distance calls use VoIP at some stage in the connection between end points; the carriers just don’t want to announce that they too have figured out how VoIP can reduce their service costs. The key here is that the VoIP interface does not have to be on the end point device to achieve a cost saving, whether for the user or the carrier.