During my recent interview with Russ Shaw, Skype’s VP and GM for Mobile, he emphasized Skype’s focus on having a true Skype user experience when it comes to supporting Skype on mobile devices.

What is meant by a “true Skype user experience” on a mobile device? Some examples, based largely on my own experience with several applications that support Skype via a mobile device:

• Find a person in an address book; press the “Green” Call button on the device and have the option to call via Skype or SkypeOut with a single click.
• Ensure access to ALL your Skype contacts with no limitation on the number of contacts displayed on the device
• Search for, and add, new contacts
• Support for Skype Contact groups
• Access and manage Skype voicemails
• Ensure that Group Chat threads are maintained on a mobile device; whereas many attempts at supporting Skype on mobile result in losing the “group thread” aspect of a Group Chat.
• Easily sign up for a new Skype account and manage Skype Credits
• Support for call forwarding (to three Skype ID’s and/or numbers)
• Chat history and call history log
• A consistent call quality
• and many more

Now that Skype is becoming mainstream on mobile via Skype for iPhone, Skype mobile^TM over Verizon and the recently released Skype for Symbian where these and many other Skype features are fully supported, Skype has decided to remove download access for two older Skype on mobile offerings: Skype Lite and Skype for Windows Mobile.

So what happened? According to Skype’s FAQ on Skype for Windows Mobile their crime was “…. Skype Lite and Skype for Windows phones were not offering the best possible Skype experience”.

• Skype Lite served as a beta product for building expertise with the architecture and user experience that is now about to be implemented by Skype mobile over Verizon. But Skype Lite, as offered, had no formal carrier support. However, a key business aspect of this architecture is how it can be used to allow Skype to be adopted by carriers such that both Skype and a carrier partner win. And, frankly, I doubt many were using Skype Lite as it really requires:
  • carrier support at the Skype-PSTN gateway inherent to this architecture to provide the robustness and scalability required to ensure consistency of both call completion and call quality.
  • the hardware and intelligence resources of a smartphone to run reliably
• Skype for Windows Mobile – dropping support here is simply a reflection of the market statistics where iPhone, BlackBerry and Android have become the major players in the smartphone market, especially in North America. Its operation over carrier networks were a gamble; it was a battery hog and did not offer a consistently reliable voice calling experience. And the drain on Skype developer resources to continue support simply would take away talent required to support platforms with broader market acceptance. Maybe a review of this decision is in order once the recently announced Windows Mobile 7 becomes available down the road.
• As for Nokia, still the world leader in smartphone devices sold, Skype recently released Skype for Symbian where one gets a complete Skype voice, Instant Messaging (presence and chat), SMS and file transfer experience over both 3G and WiFi using a VoIP client on the device. (Warning, when using Skype for Symbian over 3G, ensure you have a data plan that will not clean out your wallet in one or two calls. )

Going Forward: So what are the options for Skype on mobile:

To further enhance the user experience, three other factors come into play:

• Ideally a Skype application on a mobile device allows multitasking such that IM activities (presence and chat) are being handled in real time in the background while using other applications on the smartphone. Skype for Symbian provides this experience while it has been highlighted as one of the key features of the forthcoming BlackBerry and Android Skype clients for Skype mobile over Verizon.
• Battery Life: while providing higher speed data services both 3G and WiFi have tendency to drain batteries more rapidly. These are issues that are also being addressed in Skype over Verizon client; this is especially easy to execute on BlackBerry with its API’s that facilitate battery management.
• Use of superwideband Skype SILK codec: this really requires a full VoIP client that supports SILK. The first mobile Skype client to support SILK will be the next release of Skype for iPhone.

Bottom line: Skype has set new performance and user experience standards for its supported use on mobile smartphones and handsets. Recall that Skype’s initial adoption on PC’s resulted largely from its straight forward ease of installation and configuration; they are now looking to replicate and enhance that ease-of-use experience in the rapidly expanding mobile smartphone space. And, finally, it appears that we can look forward to additional carrier agreements, modeled on the 3 and Verizon experience.

Update: Skype Journal’s Phil Wolff, Orphaning Skype for Windows Mobile users shows Leadership:

Practicing product management sometimes feels like raising livestock. We have great hopes, spend time nurturing them, and get the most out of them during their productive life. When that productive life is over? Take them to the slaughterhouse and kill them. Make room for the next generation.

Update, March 3, 2010: Say hello to Skype for Symbian – now available via the web or the Nokia Ovi store. Includes video interview with Mark Douglas, Product Manager for Skype Mobile.

Update, March 6, 2010: Jason Harris over at TechCraver has been making multi-party Skype calls from his Nokia N900

Related articles by Zemanta

• Why Skype Just Hung Up On Windows Mobile (jkontherun.com)
• Skype Pulls Its Windows Mobile Apps (mashable.com)
• History Making Smartphone Skype Call During LeWeb Closing Session (voiceontheweb.biz)
• Traveling in a Bipolar Mobile Mode (voiceontheweb.biz)

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)

Related articles by Zemanta

• Skype & Verizon's Fear of the iPhone (gigaom.com)
• Verizon to allow unlimited Skype calling over 3G starting next month (engadget.com)
• Deal brings Skype to Verizon 3G phones (news.cnet.com)
• Skype Over 3G Now Ringing on Verizon Wireless (jkontherun.com)
• Verizon Swallows Hard And Embraces Skype (techcrunch.com)
• A Conversation with Skype CEO Josh Silverman (voiceontheweb.biz)
• Skype for Mobile: An Interview with Skype's Russ Shaw (voiceontheweb.biz)
• Reprise: Is WiFi Becoming the Unregulated Stealth Carrier of the Future? (voiceontheweb.biz)
• 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.

Related articles by Zemanta

• 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)

Yesterday Rogers launched the first Android phones available in Canada with two devices: the HTC Magic (touch screen only) and HTC Dream (touchscreen and slide-out keyboard). Rogers is the first carrier worldwide offering both these devices and also the first North American carrier to offer the HTC Magic.

Over two years ago, in a post Precursor to GPhone? On My Blackberry?, I had predicted any Google-powered phone would include all the Google features found on the BlackBerry (or iPhone).  In this regard today’s demonstration and presentation did not disappoint. Search, Maps with Latitude, GTalk, GMail, News, Google Docs, Sync, Calendar, were all included in the demonstration with the same Google features as found on any BlackBerry or iPhone. However, there were some differentiating features:

• both phones run on Rogers recently launched 3.5G 7.2 Mbps HSPA network, which Rogers claims to approach broadband DSL speeds and to be 3x faster than any other Canadian wireless data network
• there are over 3,200 applications available in the Android Market. Currently these applications are free; however, Google is expected to add a payment system in a few months.
• both phones have a touchscreen with haptic keyboard which, on a brief trial, was definitely impressive (the Dream also has a physical slide-out keyboard)

A few comments:

• While the Skype Lite beta client was seen on the demonstration devices, it does not work at the moment on Rogers. See my upcoming post about Rogers’ position on supporting Skype for more details; suffice it to say it is a Skype issue that needs to be addressed at this point.
• They are currently targeting the consumer market. With a launch involving “Fringe” actor Joshua Jackson (a native Canadian), the entire presentation centered on drawing attention through his promotional tour of the past few days.
• Pricing for these devices are C$149 when purchased with a three year plan. The voice and data plans are the same pricing as for BlackBerry and iPhone but with an one month introductory offering of C$30 for 6GB data usage per month. Interestingly, according to a salesperson in the Rogers Retail Store at their headquarters, the same offer is being made for iPhone purchases during June.
• Rogers continues to demonstrate an ability to outperform AT&T in the U.S. when it comes to fully supporting 3G, and now 3.5G, networks.
• In Om Malik’s post today, With 2M Downloads, Where Is Right on Track, it appears that ”Where” is the most popular Android application. However, for Rogers’ customers the question would be the extent of the Canadian content in this application.
• Yesterday T-Mobile USA’s CTO reported that over 1 million G1 phones have been sold in the U.S. over the first six months in the market. According to mocoNews.net, it appears that T-Mobile USA is going ahead with new Android models and forsaking Nokia’s new N97 offering:
  

  [CTO] Brodman said they are not very interested in Nokia’s flagship N97 device, which hits the market this month. Brodman: “Some of the Nokia/Symbian devices have a lot of functionality, but they are quite expensive and Symbian does not have a lot of traction in the U.S. While Nokia (NYSE: NOK) is a strong partner, we haven’t had a lot of demand for N-series products to date.”

Bottom line: Android opens up new user choices in the Canadian consumer smartphone market. Frankly, the key attraction and differentiator will be the variety of applications available on Android Market along with the overall touchscreen user experience. As a representative application, at yesterday’s launch they mentioned Savvy Shopper that allows price comparisons, using the camera as a bar code reader, for any product in their database.

Related articles by Zemanta

• Google phone aims twin barrels at Apple, RIM (financialpost.com)
• Google: Expect 18 Android Phones By Year’s End (bits.blogs.nytimes.com)
• T-Mobile USA sells 1 million Android phones (phonemag.com)

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.

Related articles by Zemanta

• Skype for iPhone: What’s the point? (news.cnet.com)
• Skype is Coming to the iPhone. For Real. (mashable.com)

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.

Related articles by Zemanta

• Skype to Storm the iPhone (markevanstech.com)
• Access Your Skype Contacts via Truphone (voiceontheweb.biz)
• Bold Twittering: When is a SmartPhone Truly a Mobile Microcomputer? (voiceontheweb.biz)
• Skype Coming for the iPhone? Little Birdie Says Yes (jkontherun.com)
• Truphone Guns For The All-in-one iPhone App – Adds Skype, Twitter And Other IM (uk.techcrunch.com)
• Skype me! – Truphone adds Skype to iPhone (textually.org)

Apparently the Skype-Nokia partnership announcement has irked some legacy European carriers such as Vodafone, O2 and Orange according to Mobile Today:

A rift has emerged between Nokia and operators over its plans to incorporate Skype onto its Nseries handsets, Mobile has learned.

O2 and Orange responded furiously to Nokia’s declaration that it will equip its upcoming flagship Nseries device, the N97, with Skype.

If the row is not resolved the two operators may refuse to stock the N97 – or any future Nseries handsets containing Skype – unless Nokia strips out the Skype client. The two operators are understood to have vented their anger in high-level discussions, which involved group level executives from Nokia.

However, Hutcheson’s 3 has seen great success in providing access to Skype for calling Skype contacts, making SkypeOut calls, exchanging presence information and holding text chat conversations. For the past year I have been making calls to Skype contacts from my BlackBerry 8820 and Bold via iSkoot and IM+ for Skype over my Rogers subscription. And I have been beta testing Truphone for BlackBerry.

Unfortunately for these carriers they did not attend last year’s eComm conference where iSkoot CEO Mark Jacobstein made a presentation “Operator Friendly VoIP: No Longer an Oxymoron”.

So what’s the background and where can having Skype access as a carrier offering be of a win, not only for Skype and its partners such as iSkoot, but also for the carriers:

The background:

• A scalable, robust channel for handling voice over wireless already exists. The data channel can transmit text plus information related to setting up a voice call.
• Device resource issues, especially battery life but also processor speed, memory resources and display issues, challenge the ability of current smartphones to handle calls using a VoIP client at a sustainably satisfactory level of reliability.

Recall the basics of the architecture and voice call process:

1. Use the data channel for handling text messages and the information required to set up a Skype voice call session
2. Use the existing voice channel for making the voice connection from the mobile device to an iSkoot/Skype/etc. server via a “local” point of presence.
3. The client on the device is designed to handle Skype IM over the data channel; however, when a voice call to a Skype contact is initiated, data for setting up the voice call is sent to the server. The server then triggers a wireless call from the server back to the mobile device while also calling the party on Skype from the Skype session on the server. (Effectively the Skype session on the server uses a variant on Skype’s inherent multi-party calling feature.)

Why is this architecture carrier friendly?

• Carriers continue to obtain revenues for local minutes
• Data plans are required to handle text and the call setup information
• There are NO termination charges for calls to Skype contacts
• Carriers can share in the revenue for SkypeOut calls
• The ability to advertise “free calling worldwide” is a very attractive marketing message for customer acquisition.
• At least in the case of the Skypephone, actual hardware costs eliminate the need to subsidize the handset. This advantage will obviously vary by device vendor.

AT&T eventually recognized that the iPhone presented a significant market share grab opportunity for recruiting customers away from its competitors. 3 accelerated its rollout of Skypephone once it saw the market response in the UK. New carriers launching in Canada and the U.S. will be looking for programs to attract customers from the incumbent wireless carriers. Thinking outside the traditional business model is necessary for carrier survival; cost effective innovation, for both the customer and carrier, will always win out in the long term.

Vodafone, Orange, O2 and others will have to succumb to the market reality that the Skype offering is a win-win for those carriers that adopt phones incorporating this implementation of Skype mobile software and architecture, whether Nokia, Android, BlackBerry, Palm Pre or any other smartphone with an inherent multi-tasking capability.

Related articles by Zemanta

• Skype Integration On Handsets: Threat Or Opportunity For Mobile VoIP Startups? (techcrunch.com)
• Nokia to preload Skype onto handsets beginning in Q3 (mobilecrunch.com)

At this year’s CES 2009 Skype press conference, COO Scott Durchslag provided an overview of Skype Everywhere (or Skype Wherever Whenever). Basically Skype is looking to become installed wherever there is a communications device with embedded intelligence (processor and memory) and an Internet connection capability. Along with the announcement yesterday of the new Skype – Nokia partnership, Scott put up a post on the Share Skype Blog that outlines the three components of Skype’s strategy for mobile devices:

• Current users: Make Skype available for consumers to download onto their existing mobile handsets. Skype Lite is architected for incorporation into any of over 100 Java-enabled handsets, including any supporting Google Android. In discussing Skype for Windows Mobile, Scott mentions that SMS messaging and File Transfer are being integrated into the forthcoming Skype for Windows Mobile 3.0.
• Smartphone manufacturers: Develop partnerships with smartphone manufacturers “tightly integrate and pre-install Skype on their devices”. Skypephone and INQ are two existing examples; the Skype – Nokia partnership announced earlier this week is the next step. These phones will be targeted to consumers who may never have attempted to use a computer to connect to the Internet. But it requires simplicity and a familiar algorithm in the user interface:
  • Find a number in the device’s native address book, click on the green “Call” button, the party is called transparently over Skype. If the call is to a Skype contact anywhere worldwide there is no additional cost; if to the PSTN, SkypeOut charges will apply at a minimum.
  • But these phones are also capable of supporting Skype IM’s presence information and chat conversations worldwide.
• Carriers: The Skyephone relationship with Hutcheson 3, using embedded iSkoot firmware, has certainly been a success. Most importantly, its “free calling” marketing campaign has certainly helped 3 acquire new users who previously would never have thought of getting such a smartphone, even if it has a limited feature set (relative to, say, iPhone, BlackBerry or Android). From the Skype Lite announcement at CES it is apparent that Skype is developing relationships with carriers in at least ten other countries, including the U.S. But details of the specific carrier relationships have yet to be announced.

Many of these services involve using the data network for Skype IM and call setup while using the robust and readily scalable GSM voice channel for voice conversations. Other issues that will provide market differentiation include:

• keyboard: QWERTY or T9? this makes a huge difference as to how much Skype IM will be used.
• display size: how readily and effectively can the device display Internet-originated content?
• battery life: will there still be enough battery life after a day of work to enjoy an evening of entertainment without a recharge?
• overall user interface: bottom line for the user experience – how readily can I get access to the services I want, using a familiar calling algorithm?

And all this leads to “What is the business model for Skype”? That will be the subject of another post.

Related articles by Zemanta

• Skype Integration On Handsets: Threat Or Opportunity For Mobile VoIP Startups? (techcrunch.com)
• In An Effort To Become Ubiquitous, Skype Partners with Nokia (skypejournal.com)
• Nokia to preload Skype onto handsets beginning in Q3 (mobilecrunch.com)

With the evolution of smartphones incorporating both WiFi and 3G wireless support, we are also seeing the application of Voice over IP technology as providing at least one leg of a wireless call.

• iSkoot was a pioneering example, with both their support of a wide range of wireless phones, including Nokia, Android and BlackBerry (full disclosure – I use iSkoot on my BlackBerry Bold) and their Skypephone so successfully launched on 3 services in nine countries.
• Recently we have seen the evolution of Skype Lite capable of providing access to Skype on over 100 Java-enabled mobile phones (not all smart phones), including Android.
• And Truphone has been launching services on Nokia, BlackBerry and, most recently, iPhone.

The real challenge for Skype was to get carrier adoption. Certainly the 3 Skypephone experience represents a successful business model where, as disclosed at eComm 2008, royalties associated with 3’s revenues are paid to both Skype and iSkoot. Skype announced at CES that they are developing carrier relationships in ten countries, including United States, that involve deployment of the Skype Lite client . With its new management team, including a former Motorola executive, it was only a matter of time before we would start to see deeper relationships with mobile device vendors.

And, of course, this initial device vendor relationship is with a vendor who has not exactly been a significant smartphone player in North American markets, although their market penetration has been more successful in European and Asian markets. Today, Skype and Nokia have announced a partnership where Skype will become deeply embedded into Nokia’s S60 Symbian platform with the launch device being the forthcoming Nokia N97. From the press release:

The Skype experience will be part of the address book of the Nokia N97, enabling presence – seeing when Skype contacts are online – as well as instant messaging. Nokia N97 owners around the world will also be able to use 3G and WLAN to easily make and receive free Skype-to-Skype voice calls, in addition to low-cost Skype calls to landlines and mobile devices.

The pros:

• Its support of both 3G and WiFi; this has certainly played well for Truphone adoption
• It supports the device at a platform level as evidenced by the integration with the native address book and the Nokia SIP stack. Is this a full VoIP client integration?
• The initial launch device has a QWERTY keyboard, making chat sessions on the device more viable and readily adopted
• An established smartphone vendor market leader outside of North America
• Probably a software licensing revenue generator for Skype
• Opportunity to drive (and share) SkypeOut calling revenue
• It provides free, beyond a monthly flat rate for the basic carrier service, voice and chat conversations with over 40 million Skype users worldwide

The cons:

• Nokia needs to establish North American smartphone market presence in a market dominated by iPhone and BlackBerry and where carriers largely control which devices and applications are available for use over their network
• Nokia needs to demonstrate they can provide a more user friendly smartphone user experience (a la iPhone) as opposed to simply being a handheld multimedia computer.
• Nokia needs to partner with carriers who are willing to allow open access to applications in their newly announced Ovi storefront

The questions:

• Has Nokia already signed up carriers to take on the (somewhat delayed) N97 when it launches in June? Following along with a Skype strategy announced at the CES press conference, we can probably assume that the device will first be available in non-carrier dominated markets.
• Does this represent an evolution of the Skype Lite client where chat and call setup occur over the network while the more robust and readily scalable voice channel carries the voice portion of a call?
• Where are the revenue opportunities for Skype, Nokia and the carriers?
• What is the ongoing relationship between Skype and iSkoot who pioneered this carrier adoption model? This Nokia-SKype partnership is totally independent of any iSkoot participation.
• How will the Nokia-Skype partnership compete with UMA plays such as described on the Tweet in the right?

Bottom Line: Liquid communications means turning on a device and finding Skype is “just there”. A partnership with the world’s largest vendor of mobile phones with hundreds of existing carrier relationships is not to be taken lightly. Combined with the Sony Ericssson Skype panel announcement yesterday, what hand will Skype play in working with Apple (iPhone) and RIM (BlackBerry)?

Update: Andy Abramson, VoIP Watch, attended the press conference:

Basically the underlying message the Skype CEO shared was carriers who will work with Skype will pick up users who spend more money than the non-Skype using mobile phone customer, or at least they did with 3.

Related articles by Zemanta

• Nokia Runs Out of Synonyms for Store, Calls its App Store Ovi (mashable.com)
• Access Your Skype Contacts via Truphone (voiceontheweb.biz)
• Skype strikes deal with Nokia (news.cnet.com)
• Skype Comes to Nokia Phones (mashable.com)
• In An Effort To Become Ubiquitous, Skype Partners with Nokia (skypejournal.com)

One of the evolving issues with the release of so many smartphone applications is how to manage access to a multitude of applications from a “Home” screen. iPhone allows up to nine Home screens; BlackBerry and Nokia basically use a Folder Tree for access via the Home screen or a sub-folder. Sony Ericsson’s Xperia X1, which is a Windows Mobile platform with a slideout QWERTY keyboard, uses an algorithm similar to the iPhones Home Screens, to make available customized “Panels” of which up to nine can be installed at any one time.

At Mobile World Congress in Barcelona, Sony Ericsson announced four new panels for the Xperia X1, of which one is a Skype panel, to become available March 31, 2009. Currently this small image is the only one available but gives an idea of how it will appear. From the Sony Ericsson press release:

Available to download from mid March 2009, the latest panels enhance the unique user interface of the X1 that enables users to customise the handset, bringing the content and applications they want onto their active desktop.

• A unique Skype panel brings quick access to Skype on the X1, telling you at a glance which of your friends are online. Browse easily through your contacts and call or instant message them in just a couple of clicks, or customise your handset using the evening, daylight or event based effects.

Building on Skype COO Scott Durchslag’s announcement at CES last month this relationship provides one more example of the Skype Everywhere initiative.

It would be interesting to know if, in this implementation, Skype is accessed using the Skype Lite algorithm over a 3G network or Skype for Windows Mobile over WiFi. Should the latter be the case, then it would be of interest to know if this new offering will use the Skype’s new super wideband, embeddable Skype SILK codec.

Related articles by Zemanta

• GigaOM reviews the Sony Ericsson Xperia X1 (jkontherun.com)

At a Skype’s CES 2009 press conference today recently appointed COO Scott Durchslag provided the first hints of a vision statement for Skype under its new executive team along with some initial software offerings that hint at the direction Skype is taking towards “liquid communications” or “Skype Whenever, Wherever”.

In leading up to the new software announcements, Scott made a few points about Skype’s recent accomplishments and focus going forward:

• Skype now delivers 8% of the world’s telecom minutes through clients that now support 28 languages
• New software will drive a liquid experience on the desktop, web, TV and mobile devices
• A key goal is to liberate the Skype experience from a captive device (desktop) to more user aware devices (mobile, TV as well as embedded into appliances)
• 41% of Skype calls on Christmas day involved video, only to be surpassed at 47% on New Years day.
• New software offerings have to pass a bar of four basic criteria:
  • high call quality
  • super simple user interface
  • sensitivity to power management issues
  • security

He then went on to talk about new software offerings:

• New desktop clients: Skype for Mac 2.8 (launched as beta at Mac World Monday), Skype for Windows 4.0 (with a February release date)
• Release of Skype Lite, a thin client  for Java-enabled mobile phones with Skype for Android to be available within a few days on Android Market on T-Mobile’s G1^TM and Skype Lite general availability in the U.S. (in addition to several countries previously announced) resulting in Skype availability on over 100 mobile smartphones.
• Internally developed new Skype “SILK” audio codec which is twice as efficient with respect to bandwidth requirements for the audio and video experience.
• Skype for Mobile Internet Devices with a demonstration on a couple of MID platforms.
• Skype for Mac 3.0 to be available by year end with the feature set of Skype 4.0 for Windows.

This afternoon Phil and I spent an hour with Scott discussing the restructuring, support issues, the TOM Skype Breach and how Skype will work with its developer partners to provide a win-win direction for the development and marketing of partner applications. These topics will be the subject of future posts over the next week.

First impression: it’s the first event where a senior Skype executive has provided in a public forum an outline of its vision, guidelines for achieving that vision and how it wants to work in the real time communication and IP-based conversation space. The real challenge now lies in the execution.

Powered by Qumana