When I met Skype’s Vice President for Consumer Products, Neil Stevens, at CES 2011, one of his points was that he wanted to see more frequent Skype client upgrades, reducing the time between new upgrades from 12 to 18 months down to 2 to 3 months. Skype certainly demonstrated that last week when, two months after the launch of Skype 5.1 for Windows, Skype released Skype for Windows 5.2 with a set of subtle improvements that largely relate to the user experience when initiating calls.

The most obvious change is to the Call Bar. Whereas previously one would see:

the Call Bar has become:

The most obvious change is the switching of the order of the “Video Call” and (voice) “Call” buttons and the  elimination of a separate line for “Skype”, “Mobile”, “Office”, etc. numbers. No doubt the former is a result of two factors:

• the popularity of video calling where Skype claims that over 40% of all calls are now video calls and
• the recent introduction of Group Video calling as  a revenue generating premium service

Access to any type of voice call is now done via the Call Button, which has acquired an associated drop down menu. In turn this drop down menu provides the access to the contact’s various voice calling options. If the Contact’s presence is Online(), a Skype-to-Skype call would be the default.  Should be user not be available (Offline, Invisible or set for Call Forwarding ) but has entered a mobile or landline number into their Skype profile, there are three changes:

• the Call button has changed to read “Call Mobile” (or Office or Home)
• the Mobile, Home or Office number would be checked off as the default destination for placing a call.
• you have a “heads up” that a Skype-to-Skype call selection will result in reaching the contact’s voice mail

While the drop down menu shows a default based on presence, you can still select one of the other options to initiate a voice call but you are now forewarned that a Skype-to-Skype call to someone with one of the three “not present” statuses mentioned above could result in reaching their voicemail.

Note that the drop down menu also allows the addition of a phone number. Very handy when you know the contact’s phone number but they have not entered it into their Skype profile.

One more change to the Call Bar: the “Share Button” provides a ready access to sharing a Contact or File. If you are in a call, the Screen Sharing option becomes available.

Bottom line: while these changes can reduce the number of clicks to make a call or share information, they also provide, in a subtle way, readier access to Skype’s revenue generating Group Video Calling and SkypeOut services. With only 8% of Skype users actually using SkypeOut it would be interesting to see if these changes actually provide any more than slightly incremental revenues.

Watch for a post on the changes to the “Call Phones” menu.

Download Skype 5.2 for Windows here or go to Help | Check for Updates in your Skype for Windows client.

And should you even be making a voice call? Check out this New York TImes article: Don’t Call Me, I Won’t Call You. (Warning NYT may have initiated their pay wall.)

Related articles

• Skype for Mac 5.0 Goes Gold: Incorporating Beta Feedback and More (voiceontheweb.biz)
• Skype At CES 2011: It’s All About Video and Mobile (voiceontheweb.biz)
• Skype’s “Easy Conference Call” – A Hidden Gem (voiceontheweb.biz)

Skype’s announcement today of agreements to have television sets become end points for Skype video calls really raises a series of both user interface issues as well as social issues:

• Do I want to be interrupted while watching programming such as a sporting event or Oprah?
• Where is it more convenient to talk: via a TV audio channel open to the room or a traditional handset with its inherent conversation privacy and reduced potential to interrupt a roomful of family and/or friends?
• Where do we want convergence? How much do we want to have application-specific hardware?
• Do we want scenarios where all those in the viewing room are exposed to the call?
• What clothes shall I wear while watching TV but enabled to be seen on a video call?
• If Skype is introduced into TV sets, how far can the inherent intelligence and Internet connectivity be deployed in a way that encourages user adoption of additional features and services? (SlingBox in the TV?)
• What Skype account(s) does one want to come via the TV? An separate account? A personal-use account? A business-use account? or combinations of these accounts. (For the Philips VoIP phone on our Rogers Home Phone service, we use a separate Skype account from my normal Skype “business-use” account.)

Why do I raise these questions? Consider three related user experiences I have had:

• When the Turin Winter Olympics opened in February 2006, I happened to be on a Skype call to an acquaintance, Peter, in Sweden while watching the CBC broadcast of the opening ceremony in my office via my newly acquired SlingBox. He was also watching the same opening ceremony on Swedish television. Our conversation was intertwined between the original purpose of the call (to address some technical issues) and comments on the opening ceremony. It was an interesting experience but note that we were watching and discussing the broadcast while being able to watch it.
• Recently Rogers quietly added a TV Call Display service that brought a feature of our Home Phone service to our TV set. Namely when someone calls us the caller ID information appears along the bottom of the TV screen along with options to Send to Voice Mail, Snooze (disable the call notification for up to 2 hours) or change the TV Call Display settings. Bottom line: it’s a minimally obtrusive service that actually provides call information prior to the phone(s) ringing and let’s you have options for dealing with the call without leaving your viewing chair.
• It’s real handy to have a PVR service that continues to record a program while viewing other programs; the other service that comes handy when there are conflicting sports events is Picture-in-Picture.

Skype’s TV Video calling currently has to be in an early adopter (or launch) phase. It simply replaces the currently viewed program with the video call taking over the screen and effectively becomes another Skype client. (More Skype Everywhere?) Obviously the TV set has to be both “intelligent” and Internet-enabled; this explains both why the HDMI 1.4 cable specification includes the ability to incorporate an Ethernet connection and why new higher performance  intelligence has to be introduced into TV sets (or cable set-top boxes).

But, partially based on my experiences described above, for a fully featured user experience we need to see:

• On-screen notification of a call while watching a broadcast program along with options to take the call or send it to a voice mail (or video mail) service.
• Ongoing recording of the currently viewed TV program in background on the PVR while on the call.
• Picture-in-picture integration to allow a viewer to monitor a program while on a call (or switch between the program and calling party as the primary display content).
• Multi-party calling (is this a potential revenue generating service for Skype?)
• Forwarding/transferring of the voice channel of the call to another Skype-enabled device such as the RTX 3088 Dualphone or mobile smartphone, or forward both the voice and video channels of the call to a Skype client on a PC.
• Chat or text messaging capability.

Given the size of the somewhat saturated HD television set market it needs new features to go beyond simply HD capability; using the TV as a Skype end point becomes one option to enhance the TV feature set. From the user perspective, on the other hand, it becomes one of many choices for handling (Skype) conversations. It certainly adds to the “Skype Everywhere” theme but how far do we want “everywhere” to go?

Bottom line: going forward we are going to see a range of attempts at convergence of our communications. But we are left with many questions:

• How much intelligence do we need within our “end point” devices? (I just acquired a Blu-Ray player that has an active Ethernet connection for firmware updates and additional content information delivery).
• Should the Skype intelligence be in TV sets or does it make more sense (and for broader distribution of Skype) to have the Skype intelligence in a set-top box, such as our Scientific Atlanta Explorer box?
• What additional services would intelligence in the TV or cable set-top box could be delivered by the cable service providers?
• How intense will the competition become between TV set manufacturers and cable set-top box manufacturers to control the intelligence behind these services? What can the set manufacturers and the cable companies see as business models for these competing offerings?
• Can this video calling intelligence be brought to mobile smartphones? Do we need LTE or 4G networks to make this happen?

At a minimum, the introduction of Skype’s TV client gives us talking points for the upcoming CES 2010 later this week.

Additional links and information:

Share Skype Blog: Get Skype on your TV

LG Electronics to Unveil Broadband HDTVs With Embedded Skype Capability

Skype and Panasonic Announce Collaboration to Add Skype Software to Viera® HDTVs

Brad Stone, New York Times: A Venture Integrating Skype Into the Family Room

And, as for the Hockey Picture on the captured TV screen: tonight Canada will be defeating the U.S. for World Junior Hockey supremacy once again…. fortunately I will be able to watch it live on my flight to Las Vegas. Something to do in this era of minimalist carry-on luggage.

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

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

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

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

From the press release:

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

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

To review Skype for iPhone’s feature set:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Two changes;

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

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

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

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

Other Posts:

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

During our conversations with Skype COO Scott Durchslag last week at CES, Scott outlined Skype’s criteria for its software development going forward.

First was the emphasis on “liquid communications” through statements such as “Skype Whenever, Wherever”. Just as today you can pick up any PC or mobile platform and find all the Google Tools (Search, Maps, News, Reader, etc.) Skype wants to be on virtually any platform or device.

Pick up a smartphone, find the Skype button. Turn on the TV, find a Skype button, have a conversation. Open a web browser; start a Skype session. All this to complement Skype on the desktop. Today, besides on the desktop, you can find Skype on over 200 mobile phone handsets, several (Sony) mobile devices, Skypephone and Apple TV. But Scott emphasized, this is only the beginning. It will only start to get real when we see Skype on higher profile devices such as the iPhone and BlackBerry or when we start to see Skype seriously back into the hardware device business with vendors such as Philips and iPevo.

Then Scott outlined four benchmark criteria that every implementation of a Skype on any platform or device must meet:

• High call quality
• Simple and easy user interface
• Consideration for battery life
• Security

Last week’s hotfix upgrade of Skype for Windows 4 beta 3 included the first implementation of Skype’s three year effort to develop the SILK codec, increasing the audio bandwidth to 12 KHz while effectively reducing the Internet bandwidth consumed during a Skype call.

A key reason for Skype’s rapid and widespread adoption has been associated with its ease-of-use. Yet Scott says the Skype conversation user experience needs to be even easier to encourage adoption by a broader user base. Developing a more effective user interface has certainly been a focus of the Skype for Windows 4 beta program. At the Skype CES press conference Scott reported that, in a recent survey of users, 88% preferred the new UI to the previous Skype for Windows 3.8. But I’m still wondering if the Skype for Windows team could take a look at Skype for Mac and implement a “drawer” type interface to manage and select the active conversation. For the longer term evolution of Skype clients hopefully Skype also has a look at Dan York’s post on Skype’s fragmented product strategy.

Battery life on smartphones was a key issue that prevented Truphone, who uses a native VoIP client for calls over WiFi, from launching a native VoIP smartphone client running over 3G networks. Instead they launched Truphone Anywhere that takes advantage of the underlying network 3G GSM voice channel and uses the data channel to set up a call via a server that, in turn, sets up a VoIP client. That voice channel tends to make much less use of the device battery than a constantly compressing/decompressing VoIP client that devours the underlying processor activity. Addressing the battery life issue is a major reason why we see Skype using a similar calling architecture when launching the Skype Lite Java client on over 100 Java-enabled cell phones, including those based on Google Android.

Security is an issue that I’ll leave to Dan York and others who are able to cover this issue more knowledgeably and effectively. Suffice it to say that we would expect security to continue to be a feature of all Skype products, including those that use the mobile voice channel for placing calls from mobile phones.

Two take-aways from these statements:

• Fundamentally we should expect Skype, going forward, to be a provider of real time conversation-enabling software on desktop, web, TV and mobile platforms. To use an old telegraphy term: Full Stop! For instance, rather than developing their own social network, we should expect Skype to seek out agreements with other social network service providers, such as the MySpace agreement. Skype is an enabler of real time conversations; it is not in the community building or social networking business. Facebook, Twitter and MySpace, amongst others have already captured that space and done an excellent job at it.
• These benchmarks also provide a basis not only for deciding what product offerings Skype will develop but also when they are in a position to release a product.

The new Skype executive team is finally starting to set some benchmarks and guidelines against which we can not only measure executed performance but also have a better understanding of where Skype wants to go.

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Reports are surfacing that Skype has been playing a significant role for many of the Olympic athletes.

Canadians have the option of watching Olympic activities during 18 hours of the day (from 6:00 p.m. to noon the following day – EDT or GMT-4) over two major networks: CBC and TSN. Canada had a dearth of medal action for the first week – causing a national angst in the mainstream Canadian media. Our two man rowing team came through with a first medal last Saturday morning and the medals have flowed to the point of winning 13 medals over the past four days.

Sunday was a big day for the Men’s Eight rowing team; having won gold at Sydney (2000), they had a major letdown by placing fifth at Athens (2004). Sunday that team, with five holdovers from 2004, won gold; it instantly became a very emotional experience for the members. During the subsequent CBC interview (unfortunately web streaming is limited to Canadians), one member mentioned how a pair of roommates had a reputation for spending a lot of time using Skype and email as their “common bond”.

Rohit Bhargava, a senior VP at Ogilvy 360, has been blogging at the games on his Influential Marketing Blog. He is in Beijing on behalf of Lenovo who is providing assistance to about 100 athlete bloggers at Voice of the Olympic Games. In the course of following the athletes’ blogging activity at the games, he interviewed three of them about their blogging experience. “Along the way in this event and through other conversations I’ve had with athletes, I picked up on several observations that only an athlete would know.” The main outcomes:

• Technology is a big topic of discussion – If you are a tech geek like me, then you probably saw the Fast Company cover article on how technology is changing the Olympics. What you might not realize is just how big of a topic of conversation this is among most athletes.
• Blogs get you interviews – Of the athletes that I spoke to with blogs, they raved about how much media the blog manages to get for them and their sport.
• Skype is the killer app – Lenovo may be the ones providing the iLounge and access to the Internet, but it is Skype that is keeping athletes connected with their families back home.
• Travelling is a pain in the *ss – For many athletes, the gear they need to carry makes life in airports and on the road really tough.

The entire post makes for interesting reading; Olympic athletes (with the exception of Canada’s 61-year-old, 9-time Olympian Ian Miller who finally won a silver medal in equestrian) are in the prime demographic of Internet savvy users. Being world travellers to participate in all their competitions has driven them to strongly adopt Internet technology, including Skype, as their primary communications tool.

And a final recommendation: read Rohit’s other posts on the Games; they make for an interesting background on how to survive in Beijing during the Games. And he has a most interesting post on how to make your “exclusive” Olympic sponsorship backfire. In the Canadian scene, Visa continues to run an ad about an athlete for whom there were medal expectations and, unfortunately the event got to him – he did not even advance from his event’s initial heat.

CalliFlower: iotum rebrands its Free Conference Call service with a focus on a rich user experience not only for conference call moderators but also for participants.

Value-add in the Web 2.0 world comes primarily through the user interface. There’s a plethora of great technology innovation happening out there. But it’s becoming acknowledged that ease of installation, implementation and operation has been one reason for many services’ success to date, including Skype’s. Yet with only 30-35 million “Real users” out of 300 million registered accounts, Skype has embarked on a new beta program designed to improve on the user experience and ongoing adoption rate for both new users and power users. In the end it’s viral user adoption that builds a business.

Last fall iotum launched its Free Conference Call for Facebook service; over the intervening months, participants on iotum’s daily Squawk Box conference call, using their Free Conference Call service, have seen the evolution of a user interface that has set a standard for enriched conferencing services. While the host or moderator tools have established call recording, participant management and a comprehensive invitation process as basic requirements for any complete multi-party virtual meeting, it is the interactive participant interface that has made Free Conference Call popular with not only the regular attendees of Squawk Box but have also found Free Conference Call being used for other series of regular Special Interest Conference Call events.

But Free Conference Call initially required you to be a member of Facebook; later a separate web-based user interface, independent of Facebook, was introduced to allow participation and hosting outside Facebook. On the participant interface itself we started to see pictures of all the attendees if fewer than 20 participants are in a call; otherwise there is a text indicator. Hand raising, muting and a chat wall all made the calls a richer, more vibrant yet still manageably spontaneous experience. And the calls are stored in perpetuity for later recall. Oh, and, other than being an Unlimited Skype user, I have never paid a cent to attend these Squawk Box calls. (Seven years ago I was paying $200 for a five party, one hour conference call.) Conference calls are as much about organizing, moderating and archiving as they are about the actual call connection.

And, with over 200,000 registered users, iotum learned:

• the need to focus on the participant experience as much as on the moderator experience
• participants valued the rich user experience
• every participant is a potential organizer or moderator
• its most active users were small business entrepreneurs

Building on this feedback and introducing additional features, iotum took on a mission to reinvent business conversations. Today iotum launches the beta of its rebranded conference call service, Calliflower, with two user interfaces – one for the moderator and one for the participants – that deliver an even richer user experience. A interactive dashboard for call moderators, calendar integration, a selection of call-in options and an interactive chat wall all contribute to establishing a new benchmark for a complete conference call experience.

Calliflower is targeted for small businesses who wish to conduct a more interactive and complete conference call experience for both the moderator and the participants. Their longer term goal is to have “open access” via any social network or any device. Yesterday I saw a demonstration of the service running through the iPhone browser but they are still working on the adaptation to the iPhone format. Certainly Nokia and Blackberry smartphones are also in their sights, provided they have appropriate advanced browser support.

But most importantly, iotum has demonstrated that an engaging, interactive, yet simple user interface is key to mass adoption of Voice 2.0 services. It’s also a business fundamental being encountered by other service providers, such as Skype and the revamped SightSpeed for Business about which I’ll be posting in the next few days.

Try out a demonstration of CalliFlower here; or sign up and organize your own CalliFlower conference call here. If you have a Facebook account, you can use your Facebook login information. You can access CalliFlower conference calls via SkypeOut; if you have a Skype Unlimited plan that includes either North America or France, that connection comes at no additional charge..

This morning Squawk Box turned the tables. Adam Somer acted as a guest host and interviewed Alec Saunders and Howard Thaw of iotum about the new CalliFlower service and their experiences leading up to its launch. Alec is putting up a recording of the call here (awaiting posting); listen in for more information.

Tags: iotum, Free Conference Call, Calliflower, SkypeOut, Squawk Box, Facebook

Skype, a business unit of eBay, is the world’s pre-eminent Internet conversation service providing the ability to have free voice, text and/or video conversations worldwide with other Skype users. In addition Skype provides low cost voice connections to virtually any landline phone worldwide as well as mobile phones in North America (U.S. and Canada). It also provides voice connections to mobile phones elsewhere; however, in a “caller pays” wireless service world these calls do have somewhat higher charges.

With any of today’s personal computers, whether Windows-, Mac- or Linux-based, Skype users can not only converse but also have up to ten-party conference calls; exchange files, such as documents and photographs; send SMS messages and leave voicemails. A key security feature of Skype is that all conversations are encrypted as well as the file transfer. Communications enhanced business solutions, such as collaboration tools, call centers and unified messaging, are available from Skype partners.

Unique features of Skype include:

• Easily installed software (over 275 million accounts have been registered worldwide)
• Simple, straight forward user interface:
  • single click to initiate a conversation,
  • user managed contact directory,
  • full touchtone dialpad (usually to dial extensions or provide PIN numbers)
• High Definition (HD) voice: all Skype-to-Skype calls feature wideband voice,
  • capturing a more true-to-life high quality audio that makes conversations more readily understood
  • reduces “squawkiness” of traditional phone conversations
• Chat session archive going back six months
• Contact management, including caller blocking, only accepting calls from established contacts, etc.
• Standard Video: works with most webcams, including Mac iSight
  • 320 x 240 @ 15 fps
• High Quality Video: 640 x 480 @ 30 fps
  • requires Intel dual core processor and Logitech webcam with Carl-Zeiss optics

The Skype Ecosystem

Skype has established a network of hardware and software partners to extend Skype’s reach beyond the PC. Hardware partners produce Skype phones and headsets; software partners extend Skype’s traditional business model disruption by offering legacy enterprise telephony services, such as call centers and collaboration tools, at costs that are affordable for the small-to-medium business.

Skype Hardware

Skype’ licensed hardware vendors supply telephony hardware to support voice calls and text messaging. Their products include:

• Headsets for PC’s
• USB telephones that work in conjunction with Skype on the PC
• PC-Free phones which connect directly to the Internet via embedded Skype firmware

Skype also has worked with several mobile platform vendors to supply embedded firmware and software on Nokia Internet Tablets, Sony entertainment devices and the forthcoming Intel Mobile Internet Devices.

In late 2007 Skype partnered with the 3 wireless service in the U.K. to launch the 3 Skypephone that allows users of the service to make voice calls to, and/or exchange text messages with, any Skype user worldwide at no cost. Calls to PSTN numbers are via 3′s standard wireless services. The 3 Skypephone also includes popular mobile device features such as a snapshot/video camera and a media player. Other software partners have developed services that provide Skype access on RIM’s Blackberries, Nokia N- and E-series multimedia phones and Windows Mobile devices.

Skype and Communications Enhanced Business Processes

Skype has partnered with several developers to develop communications enhanced business solutions that significantly reduce business process costs. Collaboration tools, call center management, fax transmission, hosted unified messaging services, hosted voice services, Skype utilities (such as call recording, personalization, enhanced voice mail and session archiving) and high quality hosted conference calls are amongst the business tools offered by Skype’s partners. The impact of Skype’s partner offerings is often to open up to small businesses many communications tools that have traditionally been considered only to be cost effective for larger enterprises. [More details]

Skype API’s and Skype Developer Program

For developers and IT professionals who wish to either incorporate Skype into their offerings or develop new communications enhanced business processes, Skype’s Developer Program offers a full range of API’s and SDK’s to facilitate integration of Skype and its services.

Skype partner HiDefConferencing enhances their conferencing infrastructure to provide high definition voice for all Skype participants on a call.

Skype-to-Skype calls have long been known for their high quality audio; certainly when I am talking to another Skype user using my stereo headset, it sounds like the other party is “inside my head”. To give a brief explanation:

The human voice and ear have an audio bandwidth range to produce voice and hear sounds up to 22 KHz. But the introduction of electronics, such as microphones, speakers, switches, amplifiers and repeaters, into the landline telephone system reduces that bandwidth transmitted by the legacy telephone system to under 4 KHz — sufficient to clearly get across the essence of the voice conversation but certainly not for recording the deep audio of that high pitched soprano or tenor solo you just may be hearing and definitely not providing the full richness of a face-to-face conversation. Mobile phones have an audio bandwidth that is about 50% of landlines bringing us the sometimes scratchy quality of mobile calls. But the Skype engine is capable of handling audio up to somewhere around 12KHz, providing a much richer and more realistic sound approaching the reality of face-to-face human conversation. At VON Boston next week, the general concept of high bandwidth voice in real time conversations is taking on the term High Definition Voice (HD Voice) at a session in the Innovators track called The Secret Life of HD VoIP. (As an aside, audio bandwidth should not be confused with the network bandwidth required to make a Skype call; different issues related to transmission of voice packets.)

One problem created by this reality is that Skype calls to SkypeOut numbers lose that high bandwidth quality. In the worst case, due to all the compression/decompression going on involving both voice and wireless compression standards, it sometimes becomes difficult to complete a call to a mobile phone. And in conference calls involving both Skype and SkypeOut participants, the call quality is reduced to the lowest common bandwidth.

For three years, VAPPS, Inc. of Hoboken, NJ has been offering its HighSpeedConferencing service extending conference calls involving both Skype and PSTN participants to as many as 500 participants. A key differentiator of this service is that VAPPS uses their own proprietary conferencing bridge which mixes the Skype and PSTN audio streams for listening by all the conference call participants. Today VAPPS is launching a beta high definition voice version of their High Speed Conferencing service that incorporates an enhanced version of this bridge. The result is that all Skype participants on the call will hear each other at the full audio bandwidth inherently available with Skype. Participants on landlines and mobile will still get the quality level associated with the underlying landline and mobile services.

Ben Lilienthal, CEO and Founder of Vapps, Inc., has made several demonstration calls with me over the past few months where he goes from a Skype connection to a landline connection; the voice quality difference is very noticeable with a richer deeper sound from the Skype connection and a “squeakier” sound on the landline connection.

But from a target market perspective, Vapps has combined the new high definition voice capability with the established robustness. reliability and scalability of their conferencing server into services that target the entire enterprise conferencing market currently served by the legacy telcos, such as AT&T, Verizon, Bell Canada and Telus. With its continued 500 participant capacity, weekly sales meetings, virtual webinars and even (eBay) analyst presentations can now be handled through the HighSpeedConferencing service with much higher voice quality and significantly lower costs.

So where does Skype fit in? HighSpeedConferencing offers, in addition to a “Pay-As-You-Go” plan, several monthly subscription, unlimited use plans based on the maximum number of participants. The “additional costs” are in making the connection between the participant and the conference bridge. Under these plans:

• Skype-based participants have no additional costs
• Calls from landlines and mobile devices have any associated long distance charges to the conference’s landline number
• The host can also make available an 800 number (in eight countries) and pay for the participants calling in from a landline.
• The plan includes a base number of toll-free minutes per month for landline/mobile participants.

Reservations and scheduling of calls are optional but no reservations are needed. Additional features with the subscriptions are:

• Call recording with 30-day storage
• Hand raising along with host control of individual participants’ mute/unmute
• Web Controls for host management of the calls

For instance, a 100 user plan costs $125 per month for the host; this includes unlimited minutes for Skype users, 2500 toll-free minutes for landline/mobile participants as well as the call recording, hand raising and web controls features.

Also of note:

• Skype participants on a Pay-As-You-Go call will pay $0.04/minute per participant; landline/mobile participants (US/Canada) are $0.07 per minute per participant
• A 30-day free trial of the “HighSpeed 25″ subscription is available to allow enterprises to work out how HighSpeedConferencing can be incorporated into their communications activities.
• High Speed Conferencing is a Featured Skype Extra for this quarter and can be accessed from the Tools | Do More | Get Extras menu in Skype.
• High Speed Conferencing also works with the Skype-enhanced collaboration services Skype Extras: Convenos and Yugma Skype Edition.

From the press release:

We are thrilled to offer this service to the small businesses and entrepreneurs that are always searching for the most effective tools for success,” said Ben Lilienthal, CEO of Vapps. “Highspeedconferencing.com presents the perfect convergence of high quality, low-cost and flexibility in the audio conferencing industry.”

The ability for small businesses to host these calls via the telephone or the Internet, not only enables them to present their clients with big business offerings, such as flexibility, but it also enables them to do so using the low cost of Internet communications.

Skype for one has recognized the importance of applications built by partners like Vapps for three years now and the value they bring to the Skype platform. Since 1st October, 2007, Skype has been promoting the Vapps HighSpeed Conferencing solution to its 220 million registered users as a premium extra.

Update: Andy Abramson comments at VoIP Watch:

A call yesterday showed how bright and full it sounds. The platform works with mobile, VoIP, PSTN and Skype inbound calls, and can handle up to 500 simultaneous participants per call.

Footnote: we are starting to see mass confusion about what is meant by HD when it comes to audio-based services:

• Intel actually has set specifications and released products using the term HD Audio
• HD Radio really means Hybrid Digital Radio
• And VON Boston next week is having a session on HD VoIP.

Tags: Skype, VAPPS, HighSpeedConferencing, Convenos, Unyte, Yumga Skype, HD Voice

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When Skype Vice President Stefan Oberg spoke at VON Canada last year his theme was how Skype’s goal was to be “Better Than a Phone”. To make his point he mentioned how even the simple task of plugging in a headset (often on the rear of a desktop PC or in a laptop docking station) still frustrated Skype product managers and engineers as an “ease of use” issue. Otherwise background noise and echo effects made conversation difficult at best, if not impossible, when using the basic speakers and microphone supplied with a PC.

Today, with the release of Skype 3.2 beta, you no longer need to have that headset (or handset) to achieve top-notch voice quality in your Skype voice conversations. You can make excellent quality Skype calls using your basic PC speakers and microphone.

While not mentioned in the press release, if you look at the Release Notes for Skype 3.2 beta 53, you will find:

• feature: Skype’s own audio codec

• feature: Skype improved conference mixer

• feature: Skype Jitter Buffer and concealment

• feature: Skype audio preprocessing components

What this all adds up to is a new standard for voice quality in VoIP calls. Skype has internally developed its own codecs, based, I suspect, on the Camino Networks technology Skype acquired last April, such that calls to/from a Skype 3.2 client can be made simply using the microphone and speakers that come with any laptop or desktop PC. Echo cancellation and noise cancellation capabilities in these codecs make your Skype calls sound like a call with headsets or phone handset but without the hardware.

As a result you can have hands-free operation of your Skype calling while not cluttering up your physical desktop with additional hardware. The sole reason for using traditional USB handsets will be privacy; speaker phones may still have some application in board room environments. PC Free phones will continue to have their role in getting Skype available throughout the home or small office.

I first heard about this new capability from a beta tester a couple of weeks ago. He had to make a all from a booth conference room on the floor at CeBit 2007. While surrounded by four walls, with no ceiling, sound from the conference came in over the top. Yet, using the Skype 3.2 client he successfully made a business critical call using Skype back to parties in North America simply using the mic and speakers inherent to his laptop.

This morning I tested out the Skype 3.2 client using simply my laptop (actually my Altec Lansing USB speakers to enhance sound power that could create echoes) and the microphone from my headset. (Need to call Dell for a service call on my laptop’s built-in microphone.) I placed the mic about midway between the speakers and made five different calls — four using Skype at the other end while the fifth was on a mobile phone via SkypeOut. All four Skype parties found the call quality superb while the call to the mobile phone had poorer but quite acceptable quality — probably due to the terminating mobile phone infrastructure. One of the called Skype parties found it “eerie” that this all worked when he thought about the consequences; he said it was the biggest feature to come out since the release of Skype itself.

Find out for yourself, download the Skype 3.2 beta, install it and call your friends and colleagues without any headset or handset. Put your feedback into the comments.

Bottom line: the new Skype codecs set a new baseline for call quality on any VoIP service. Skype appears to have built a significant differentiator with these new codecs; with them Skype becomes significantly “Better Than a Phone”, especially when combined with all of Skype’s other real time conversation features.

The secret sauce used by Skype that results in the excellent voice quality of Skype-to-Skype calls and facilitates quality in Skype-to-SkypeIn/Out calls is the Voice Engine for PC and Voice Engine for (Windows) Mobile licensed by Skype from Global IP Sound (“GIPS”). Combining codecs, echo cancellation technology and other voice and packet management features the various GIPS Voice Engines eliminate or minimize the impact of inherent (wired or WiFi) network problems and deficiencies introduced by factors such as delay, jitter, packet loss, clock-drift, acoustic and network echo.

In a press release last Monday, Global IP Sound announced the extension of this relationship to include Skype’s licensing of Voice Engine for Embedded such that the GIPS features and technology can be deployed in voice-enabled hardware devices. In an interview with Wendy Toth, VP Marketing, and Dr. Jan Linden, VP Engineering at GIPS, we learned:

• This agreement will permit the incorporation of GIPS Voice Engine technology into future WiFi phone offerings. (It is not included in the recently released WiFi phones announce last month.)
• It would facilitate the offering of a Skype for Symbian phones (such as Nokia’s N-Series) although no such client has yet been announced by Skype.
• In July Skype/eBay and GIPS resolved the patent dispute that Skype effectively assumed upon Skype’s acquisition of Sonorit and Camino Networks.

Eleven years ago I had been close to the scene when Microsoft did an original one-time licensing of the Spyglass Mosaic web browser that formed the core of the original Internet Explorer; Spyglass then went out of business within the following year as they had no sustainable revenue stream. I asked Wendy what was different about the GIPS business model such as to sustain and grow their revenues, given that Skype has licensed GIPS but has no ongoing revenue base for basic Skype calls. She responded:

• GIPS has developed a business model that relies on both initial one-time and ongoing usage revenues.
• GIPS has built up a diversified customer base such that GIPS’s success is not significantly dependent on their Skype relationship.
• GIPS has set the bar for voice quality through their unique overall methodology for voice processing, incorporating echo cancellation and their proprietary codecs.

Other questions we posed to Wendy and Jan:

• What is the status of Global IP Sound’s video technology which was demonstrated at Fall VON last year? Effectively they have extended their Voice Engine into a Multimedia version that incorporates video technology. The initial licensee of Voice Engine Multimedia is AOL. To date there has been no licensing by Skype but she would not reveal whether there were any negotiations to extend Skype’s license to include Voice Engine Multimedia.

• Where do you see the real push or pull for compatible hardware devices? Dual mode WiFi handsets and compatible ATA devices.

• What is the most significant trend you have seen in the past year? Asia is a market that is growing much faster than our North American and European markets. Of particular note are Korea and India.

• Where do you see the market in three years? We will see VoIP go away as a term as it becomes transparent to all voice communications infrastructure. On the other hand it will impact how we communicate as new voice applications evolve. GIPS will be a player anywhere there is voice processing on the network. As an example, have a look at GIPS Border Interface Engine, bringing GIPS technology to the carrier market at the VoIP/PSTN gateway.

In summary:

• Expect to see new Skype-Certified hardware incorporating GIPS Voice Engine Embedded in the not too distant future.
• Given that their relationship has matured to the point where they can quietly resolve potentially divisive issues such as the patent dispute, the GIPS-Skype relationship that is a key element contributing to Skype’s success has become much stronger.
• Going forward GIPS will be a player in the VoIP communications ecosystem at the client, device, network and carrier level .
• Question: Will Skype take advantage of other GIPS Voice Engine technology to provide improved video as well as a Symbian Skype client?