Skype creeps under phone giants' radar

At a time when major U.S. telephone operators are spending billions of dollars to expand, telephone software maker Skype on Tuesday says it's building a global phone network virtually for free.

New renditions of Skype software for Linux and Macintosh operating systems are expected to become available on Tuesday. The new releases are a significant expansion for 17-month-old Skype. Since its debut, Skype's free software only worked on Microsoft devices, though test versions of the Linux and Macintosh software have been available since last year.

Skype's latest software arrives at a time when many elite U.S. phone companies are consolidating with others in multibillion dollar deals that let the communications giants expand into new markets and territories. Using the merger-mania as a backdrop, Skype's new software releases should put even more fright into traditional telecom executives.

The number of new Skype users is increasing at rates not seen since the early days of instant messaging, and at no cost to Skype other than hosting a Web site to make the software available, and "making software tweaks," Skype CEO Niklas Zennstrom said in a recent interview. More than 140,000 new users register each day.

It would cost phone companies still using traditional means untold billions in construction, marketing or merger costs to come close to matching Skype's growth rate. And they are running out of companies to buy. Recently, SBC said it plans to spend $16 billion to buy AT&T; while Sprint finds $31 billion to pay for Nextel Communications. Cingular Wireless vaulted to the top of the U.S. carrier heap last year when it bought AT&T Wireless.

Much of Skype's explosive growth has to do with voice over Internet Protocol (VoIP), the software that lets a broadband line double as a phone line. By virtue of its mechanics, VoIP software doesn't anchor a provider like Skype to certain geographic areas, as traditional telephony does. Rather, VoIP is tied to wherever broadband is available.

Once downloaded, Skype users can talk for free with any of the 22 million other Skypers located on every continent. An Internet connection is required and calls to the traditional phone network costs extra.

A recent report by Evalueserve said traditional local phone operators could lose up to 30 percent of their revenues from people who are replacing them with Skype software.

"We are a software provider," Zennstrom said. "So it's very easy to grow a user base."

[ahickey]

Skype is Great

In Ireland the cost of international call is excessive, so having the option to use Skype is great.

I have used Skype for about 6 months 'phoning' a friend of mine in the UK from Ireland. I have also used the SkypeOut system to phone my sister is Australia (on her mobile) - there was a bit of a delay, but it was much cheaper than phoning directly.

I think it is a great program and is really easy to use. If you have friends around the world and they have broadband then it can save you a fortune in telephone charges.

[ahickey]

Skype is Great

In Ireland the cost of international call is excessive, so having the option to use Skype is great.

I have used Skype for about 6 months 'phoning' a friend of mine in the UK from Ireland. I have also used the SkypeOut system to phone my sister is Australia (on her mobile) - there was a bit of a delay, but it was much cheaper than phoning directly.

I think it is a great program and is really easy to use. If you have friends around the world and they have broadband then it can save you a fortune in telephone charges.

[lewissalem]

I fully expect

skype to be taxed, shut down, something. Anything innovative that hurts big business gets sued into obscurity in this country.

[lewissalem]

I fully expect

skype to be taxed, shut down, something. Anything innovative that hurts big business gets sued into obscurity in this country.

[qazwiz]

You should sign up

I have no outgoing phone (and incoming will only work when swithcboard is manned) Internet is on Cable and it ain't cheap(~&60/mo) can't afford another $40 or $50 to make a dozen or two calls for about an hour total per month and calling cards charge $.50 - $1 to connect at their five cent price.


Enter skype and skypeout
skype is computer2computer both must be logged on to talk or type (a chat mode of skype) although it appears that you can send a message to a skype member and they will get it when they connect up next. I have mine set to have the computer ring me (through the speakers) when someone calls me but so far havn't tested it either.


Where skype shines is actuslly called skypeout. while skype is totally free you do have to pay for skypeout I paid under US$14 for ten Euros of SkypeOut (last november) they charge 0.017 Euros per minute for USA which runs less than 2.38 cents with no initial fee per call


Quality is a bit lacking but the clipping that occurs (probably dropout) is only as annoying as the static I remember when long distance cost dollars per minute so it is acceptable. The only problem I had was when Total Recorder took over default device on my computer(happens at instalation) I followed the clear and well illustrated instructions in Skype FAQ and I was up and running in no time.


Even if you don't need skypeout you should still signup so others can call you for free

[qazwiz]

You should sign up

I have no outgoing phone (and incoming will only work when swithcboard is manned) Internet is on Cable and it ain't cheap(~&60/mo) can't afford another $40 or $50 to make a dozen or two calls for about an hour total per month and calling cards charge $.50 - $1 to connect at their five cent price.


Enter skype and skypeout
skype is computer2computer both must be logged on to talk or type (a chat mode of skype) although it appears that you can send a message to a skype member and they will get it when they connect up next. I have mine set to have the computer ring me (through the speakers) when someone calls me but so far havn't tested it either.


Where skype shines is actuslly called skypeout. while skype is totally free you do have to pay for skypeout I paid under US$14 for ten Euros of SkypeOut (last november) they charge 0.017 Euros per minute for USA which runs less than 2.38 cents with no initial fee per call


Quality is a bit lacking but the clipping that occurs (probably dropout) is only as annoying as the static I remember when long distance cost dollars per minute so it is acceptable. The only problem I had was when Total Recorder took over default device on my computer(happens at instalation) I followed the clear and well illustrated instructions in Skype FAQ and I was up and running in no time.


Even if you don't need skypeout you should still signup so others can call you for free

[Cwobbles]

Great......when it works

Skype is fantastic, but the MAJOR gripe that is not being addressed is the huge problem people have recharging their account with the same credit card. Customer service says it's being fixed, but I don't believe that when the Forum keeps coming up with the same complaints.

Colin

[Cwobbles]

Great......when it works

Skype is fantastic, but the MAJOR gripe that is not being addressed is the huge problem people have recharging their account with the same credit card. Customer service says it's being fixed, but I don't believe that when the Forum keeps coming up with the same complaints.

Colin