Skype CEO Niklas Zennström vowed to shake up the phone industry 20 months ago with his creation, the first ever peer-to-peer Internet phone service.
More than 110 million downloads and 2 billion minutes of phone conversations later, Zennström has shown that he wasn't kidding. But Skype's success has led to perhaps the most difficult chapter yet for the Luxemburg-based company. It now faces mounting concerns over a lack of customer service and a growing backlash by utility regulators as it hunts for new revenue opportunities. Zennström spoke to CNET.News.com about these and other issues earlier this week.
Q: There are a lot of customer complaints about SkypeIn, where you get inbound calls from any phone, and SkypeOut, which is used to call any phone. Is there a problem with it? Zennström: One thing you have to bear in mind is that the telephone system has been around for 135 years; Skype's been around for 20 months. We are going through all kinds of improvements.
But clearly something is wrong. Customers are fuming about dropped or badly distorted calls. Any changes in the offing? Zennström: There actually are people using SkypeIn that say it's better than SkypeOut. We are using a new software version for SkypeIn, which we will be gradually introducing into SkypeOut. We are continuously working on it.
One thing you have to bear in mind is that the telephone system has been around for 135 years; Skype's been around for 20 months.
Is that going to solve the problem? Zennström: We're also adding more carrier partners in order to terminate more calls to traditional phones. That will help. We are also developing lots of new ways to correct errors in the traffic. I think we will continue to see improvements in quality.
These are quality of service problems Skype can address. But Skype can't control the quality of someone's broadband connection, which has a direct impact on Skype calls. Zennström: We've identified a list of things we can do. But in cases where people are on a badly congested Internet network, that will have an impact on quality. But you're starting to see multi-megabit, per-second connections. In many places, Sweden for example, you can buy a 24mbps line here, and you'll start seeing that in a lot more places.
Your proprietary software has come under fire from those Net phone interests advocating open-source Session Initiation Protocol. What's Skype's SIP stance now? Zennström: We've been using SIP to interconnect SkypeIn and SkypeOut calls to the (traditional) public switched telephone network (PSTN) since July. Second to Yahoo Broadband in Japan, we're probably one of largest SIP traffic generators. But doing
I think the idea of Skype is fantastic and it is also very affordable. However the quality of the call is so poor that it is extremely hard working having a conversation. I use Skype in Australia to call a landline in Italy. I am going to abandon using Skype until the quality gets better. I currently have a fast Brodband connection.
Bad luck. My friends are using extensively SkypeOut to call from Germany to Belarus and quality is considerably much better.
I think in your case, you are hitting the latencies problems: most of the locations in Europe I have tried has terribly high latencies when connection goes to Japan (primary interest), Oceania & Australia. Half second to second delays seems norm of life. So I expect that your latencies from Australia to Europe will be high as well.
This is where Internet providers save money: Asia<- >Europe traffic is very limited - different languages/ cultures - so channels are very narrow and thin. And Australia - I believe - belong geographically to Asia.
Skype's advantage of saving capital by not having to build their own network also seems to be their Achilles Heel. Everyone who uses Skype shares a potion of their network bandwidth to contribute to a bandwidth pool. This is why Skype doesn't need to have their own VoIP infrastructure -- hence they can offer a free or low cost service. The problem seems to be that because this is a peer-to-peer network the quality of service (QOS) varies a lot. That's OK if you are simply swapping files around (like BitTorrent). But it is a disaster for real-time voice and video communications.
Hi you seems to think that skype works without any server .... NO : as SIP , or IAX , it needs a directory of users !! try to use skype without being connected to the net ... you will have nothing ... WHat skype has done was already done in terms of quality and easy by IAX but SIP has problems with NAT .... Consider trying real telephony please check the truth on www.voip-info.org THANKS ... the only thing I have against skype is their proprietary protocol ...
VoIP runs on the IP network. That is the internet, which by definition is shared. Most VoIP vendors do not own the network that they provide services over. Skype is simply a proprietary protocol running on the IP network which uses a P2P model. This actually allows for better sound quality. Ofcourse it requires peers in order to function, but this is good in my opinion as the network is not controlled centrally. It is also encrypted, which is far better then the other VoIP vendors. Once they have a larger base of POTS providers offering skype relays, the sound for skype to pots and pots to skype will improve. Skype to Skype will always be best in terms of sound quality and security.
Sorry to say, there may be customer service problems with Skype, but the bigger story is how Skype is already shaking the establishment. Too bad the interview did not touch on that!
With the introduction of Skypeln, Skype is hitting the market with two major disruptive features: 1- they have already enabled the ability for a single (mobile) phone unit (in this case, a pocket PC running Skype) to be on the receiving end of multiple international phone numbers. 2- In many cases, they have effectively made incoming roaming free, another disruptive feature.
As an example, I have a US and French number that I use on my trips to Romania free of any roaming charges. And by the way, my connections have always been pretty good!
If anything is true, the telco should really pay attention; there are bundles of new features and services they would need to roll out to compete effectively. The next couple of years will be very interesting for the least. Cant wait!
Skype works good on PC to PC connection ,but the PC to phone connection is pathetic at the momemt, Works well for first 5 minutes then the problem starts , there is staggering of voice and sometimes the voice is played faster then the speed of speaking.Even with the best network speeed. Skype provides good deal at the moment on landline but calls to mobile phone are way costlier atleast for rates to Switzerland.Need improvement in quality.
Costs to cell phones are not a Skype created problem. From ANY phone, when you dial in to a foreigh cell phone, you pay a higher price. For example, from my US based carrier, a call to a landline number in Turkey costs $0.19 while one to a cell number will cost $0.40. Skype is doing a great job by bringing a desruptive Internet application.
I am an occasional user of all 3 of Skypes services, PC to PC, SkypeOut and SkypeIn. I am very pleased with the quality in general. The main issue is with SkypeOut, where voice quality is bad as often as it is good. SkypeIn is phenomenal and my friends and I are amazed at the voice quality and technology of it every time we use it. I have a Chicago number that rings on my PCs in Spain.
My main concern with Skype is the lack of SIP interconnectivity. As a corporate IT guy reading about various Open Source PBX projects, its sad to think that Skype wont be able to fit in somewhere.
I understand that GPS is a separate service, but you'd think that this would be a no brainer in convergence. Sure, GPS service and device pricing is a barrier, but with market pressures, it would surely drop rapidly. Both services stand to benefit greatly. GPS is great, but the added value is what can be layered on top of it. If VOIP wants to truly compete with POTS, they need location based services--ESPECIALLY 911. Cellular triangulation is no exact science and to some extent neither is GPS. GPS, however, DOES do better at location. A directory service doesn't provide worth in a mobile society in terms of location.
In short, some cross investment between GPS, Cellular, and VOIP businesses would be a giant leap toward relieving the consumer of the stranglehold of the antiquated POTS.
In November of 2006 I ordered Skype service and payment cleared on December 5, 2006 through bank transfer. I never received my service so I had requested a refund. Over the past 3 months customer service has told me the refund is being processed over and over again. I look on the skype forums and it is filled with refund requests and customers not getting service, nor refunds. It appears to me from my experience and research that Skype is cashing in on not providing service and not refunding money. I have requested from Skype information on how to file a formal complaint but they have not provided me with this information. Its ashame, it is not a large amount but if you multiply it by the amount of people not receiving refunds, and the time they are waiting if they ever do receive a refund, Skype is making out on ill-gotten money. Good scheme they got going there.
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call from Germany to Belarus and quality is
considerably much better.
I think in your case, you are hitting the latencies
problems: most of the locations in Europe I have tried
has terribly high latencies when connection goes to
Japan (primary interest), Oceania & Australia. Half
second to second delays seems norm of life. So I
expect that your latencies from Australia to Europe will
be high as well.
This is where Internet providers save money: Asia<-
>Europe traffic is very limited - different languages/
cultures - so channels are very narrow and thin. And
Australia - I believe - belong geographically to Asia.
which by definition is shared. Most VoIP vendors
do not own the network that they provide services
over. Skype is simply a proprietary protocol
running on the IP network which uses a P2P model.
This actually allows for better sound quality.
Ofcourse it requires peers in order to function,
but this is good in my opinion as the network is
not controlled centrally. It is also encrypted, which
is far better then the other VoIP vendors. Once
they have a larger base of POTS providers offering
skype relays, the sound for skype to pots and pots
to skype will improve. Skype to Skype will always
be best in terms of sound quality and security.
With the introduction of Skypeln, Skype is hitting the market with two major disruptive features:
1- they have already enabled the ability for a single (mobile) phone unit (in this case, a pocket PC running Skype) to be on the receiving end of multiple international phone numbers.
2- In many cases, they have effectively made incoming roaming free, another disruptive feature.
As an example, I have a US and French number that I use on my trips to Romania free of any roaming charges. And by the way, my connections have always been pretty good!
If anything is true, the telco should really pay attention; there are bundles of new features and services they would need to roll out to compete effectively. The next couple of years will be very interesting for the least. Cant wait!
Works well for first 5 minutes then the problem starts , there is staggering of voice and sometimes the voice is played faster then the speed of speaking.Even with the best network speeed. Skype provides good deal at the moment on landline but calls to mobile phone are way costlier atleast for rates to Switzerland.Need improvement in quality.
My main concern with Skype is the lack of SIP interconnectivity. As a corporate IT guy reading about various Open Source PBX projects, its sad to think that Skype wont be able to fit in somewhere.
In short, some cross investment between GPS, Cellular, and VOIP businesses would be a giant leap toward relieving the consumer of the stranglehold of the antiquated POTS.