News Blog

Internet calling provider Skype said Tuesday that it has hired Scott Durchslag, a former Motorola executive, to become its chief operating officer.

Durchslag spent more than five years at Motorola where he was most recently corporate vice president of global product and experience invention for the mobile devices business unit. Skype said that while in that position Durchslag "led product strategy, innovation, intellectual property, design, user interfaces, consumer experiences, partnerships, product marketing, and customer care."

The fact that Durchslag was in charge of "strategy" and "innovation" for Motorola's device business at a time when the company lost significant market share to competitors, because it lacked innovative and compelling handsets, isn't exactly a ringing endorsement. Motorola's poor handset performance led to the ouster of former CEO Ed Zander and a planned spinoff of the mobile device unit.

That said, Durchslag had some significant successes at Motorola. He helped strike deals with Google, Microsoft, Yahoo, and Kodak to bring new services to Motorola's mobile devices. And in a previous role at the company, he was in charge of Motorola's South Asia region where he was able to build a business with the highest margins for Motorola, according to the Skype press release.

When he joined Motorola in 2002 as chief strategy officer of the Personal Communications Sector, he helped develop the turnaround strategy that doubled market share and revenue for that part of the business between 2002 and 2007, Skype also said in a statement.

Josh Silverman, who was named Skype's president in March and will be Durchslag's new boss, is confident that his new charge will help Skype innovate and bring new services to market.

"Scott has an outstanding track record and will be able to help us apply best practices in staying ever more customer-focused and nimble, even while becoming larger," he said in a statement.

Skype provides free and low-cost voice, video calling, and instant-messaging services over the Internet. The company was acquired by eBay in 2005 for $2.6 billion. And even though it is by far the most successful voice over IP services company in terms of users with 309 million registered users worldwide, it hasn't been a financial success for eBay. In fact, last year, eBay took a $900 million so-called impairment write-down against the value of Skype. In essence, the company admitted to shareholders that it has taken a loss on its original investment.

Still, eBay is determined to make something of its investment. Mobile is likely the next frontier for Skype. And Durchslag's experience could help the company come up with a viable strategy. I guess we'll have to wait and see.

T-Mobile USA plans to announce Wednesday that its new @Home voice service will be available nationwide starting July 2.

The cell phone operator has been testing the new Internet telephony service since February in Dallas and Seattle. And now the new service, which is meant to replace traditional home phones, will be offered to any T-Mobile cell phone customer.

Subscribers will be able to connect any regular home telephone to a T-Mobile router that will send calls over the Internet much the same way as services like Vonage operate. The service costs $10 a month plus taxes and fees for unlimited domestic local and long-distance calls.

Only T-Mobile wireless customers who subscribe to at least a $39.99 individual calling plan or families subscribing to at least the $49.99 monthly T-Mobile calling plan can get the service. The @Home service also requires that users subscribe to a separate broadband service from a cable operator or telecom provider. And they are required to use a special T-Mobile router, which also provides Wi-Fi Internet access throughout the home.

This router can also be used to provide T-Mobile's HotSpot @Home phone service. This service, launched last year, allows T-Mobile subscribers to use dual-mode cellular and Wi-Fi phones that switch between both networks. When subscribers are near their home Wi-Fi hot spot, they use the broadband network to make unlimited domestic calls. And when they are outside the home, the phone seamlessly switches to T-Mobile's cellular network.

The service, which also costs $10 extra per month, serves two purposes. It helps provide better in-home cell phone coverage and also helps reduce the number of minutes used on the T-Mobile cellular network.

Britt Wehrman, director of product development for T-Mobile says the service, which launched a little over a year ago, has been a big success. The company hasn't disclosed subscriber numbers for the service, but Wehrman said that 45 percent of the hot-spot customers are leaving competitors to get the T-Mobile service. T-Mobile currently has eight dual-mode handsets that work with the service, two of which were announced earlier this week. And it has four more to announce by the end of the year, bringing the total to 12 dual-mode handsets.

The @Home VoIP (voice over Internet Protocol) service is meant to work with the hot-spot phone service, Wehrman said. When the hot-spot service was first introduced, the company found that families were interested in the plan. But they weren't willing to cut the cord on their home phones.

"The hot-spot service offers parents a good way to limit overage charges, because the kids can talk on their cell phones while they're at home without eating up minutes," he said. "But we found that many families didn't want to get rid of their traditional phones. They still wanted one phone in the house for the whole family."

So the @Home VoIP service was created to give families who don't want to get rid of their traditional landlines a low-cost option for retaining that line while still using the hot-spot service. To ensure that E911 service works with the VoIP service, T-Mobile is requiring all users to register their home address before service can be activated.

But because it is an Internet-based phone service that is dependent upon a broadband modem for connectivity, families will still have to consider the risks of power outages and Internet interruptions that will make the VoIP service and E911 unavailable during those outages. But Wehrman said that the fact that T-Mobile requires that subscribers of the @Home service also have a T-Mobile cell phone subscription limits the safety concerns.

It's been a while since a major Skype release, and on Wednesday, the eBay-owned VoIP communication service will issue the first of several planned version 4.0 beta builds for Windows that are anticipated to drop over the next few months.

The biggest changes to come with Skype 4.0 beta (download) are visual and organizational. For the first time, the program contains complete prompts for running sound and Webcam checks within the program set-up. After two failed tests buffered by common troubleshooting suggestions, Skype will recommend hardware--like headsets and a Webcam--to reverse incompatibility errors.

(Credit: Skype)

Redesigned interface
Skype 4.0 beta's redesigned interface may also get you blinking. Compared with its stable cousin, the new Skype beta's GUI has overflowed its banks, replacing tabs in the once-narrow interface with a second pane tacked on to the right. Four or five functions are flattened into this single window in an effort to make communications other than the voice chat staple easier to find and use. To wit, there's an IM bar deposited at the bottom of the communications pane and large buttons that prompt voice and video calls. Video calls are large by default, filling the program's communication activity pane.

Skype Out, the service offering competitive international rates for Skype users calling contacts' landlines instead of their computers, has also been chiseled out, by a large call-to-action button on the navigation bar. The button just below it opens a directory for finding people, businesses, and chat rooms. The toggle bar tucked away at the top switches from saved chat conversations to the contacts view, and rounds out the new additions.

Some functionality, like Skype Prime, will arrive in later builds.

(Credit: CNET Networks)

Still more to come
Though there may be a placeholder for it, not every function in this first beta is live. The shop for Skype-approved hardware, while available from Skype.com, will not be activated in this iteration, nor will be the service on real-time advice, called Skype Prime. Automatic redial, call transferring, video presentations, and integration with Outlook contacts are also scheduled for roll-out in later builds.

The spread-out interface of Skype 4.0 beta for Windows will definitely take some getting used to, especially as it abandons the client's traditionally nimble, IM-styled build. However, it does succeed in calling out a wider array of communication services. This may give the Luxembourg-headquartered company a chance to deemphasize VoIP as its core competency and mark out new territory in Internet video, collaboration tools, and entertainment services.

As ambitious as Skype's new look and capabilities are, Mike Bartlett, the program's Windows product manager, confessed during our briefing that this design and the newly introduced features will be closely monitored for user backlash. It's likely that strong feedback from Skype's 309 million registered users will leave an impression on Skype 4.0 beta continues to take shape in the upcoming months.

The "new" PSP Skype Headset

(Credit: Amazon)

When we reviewed the Sony PSP Headset a few months ago, we determined that it worked perfectly fine with the console's newly enabled Skype feature--so long as you scrounged up the accessory extension cable needed to enable the two-way communication function. The problem was that the headset didn't include the cable: you needed to buy another set of Sony headphones--the PSP earbuds--just to get the included cable. It was one of those corporate catch 22s that seems to be par for the course in the world of consumer electronics.

Thankfully, Sony has finally addressed the issue. The Sony Skype Headset Kit for PSP bundles the headset and the remote extension cable into one package, all for a tidy $30. Another advantage: the extension cable is now black instead of white, so it matches both the headset and the color scheme of most PSPs. It's available now at a variety of online retailers, including Amazon and Buy.com. For Skype users who are always toting their PSPs through Wi-Fi-friendly environs, it's a pretty good deal. Just remember that the headset--and the Skype functionality--only work on newer PSP 2000 ("slim PSP") models, not the original PSP units.

Source: Amazon via Gizmodo

WASHINGTON--At the moment, most TVs and telephones must be outfitted with special features for people with hearing, vision, and speech impairments under U.S. law. Now an influential Democratic congressman wants to expand those requirements to their Internet counterparts.

The bill (PDF) being drafted by Rep. Edward Markey (D-Mass.) would require, at least in some cases, dramatic changes in the way Internet phone- and video-related products are designed, while making it more difficult than under existing law for companies to claim exemptions from those requirements.

"The wizardry of the wires and the sophistication of the software programs do little for those who cannot affordably access or effectively use them," Markey said at a hearing here Thursday convened by the House of Representatives telecommunications and Internet panel he leads. "Our job as policymakers is to help ensure such affordable access and utilization, and this is what the draft legislation I have circulated is intended to do."

In some ways, the effort would simply build upon steps already taken by policymakers in recent years. Last summer, for instance, the Federal Communications Commission decided that voice-over Internet protocol providers whose services connect to the public-switched telephone network, such as Vonage, would be required to make their services compatible with hearing aids and telecommunications relay services, just as traditional phone operators do.

The Markey bill would extend those obligations to Skype-like equipment that allows users to swap voice, text, or video communications via Internet protocol technology. It would also go a step further, requiring them to support standard "real-time text" communication, an interactive data transmission method that replicates the feel of voice conversations more closely than instant messaging.

The bill also contains new rules for manufacturers of any gadget designed to receive or display video programming, be it Internet-based or otherwise. They would generally be required to equip those devices with the ability to decode and display closed captions, to deliver "video description" services (that is, oral narration designed for the blind and visually-impaired), and to present typical ticker-style emergency messages in a way that's accessible to the blind and visually impaired.

Furthermore, the devices would have to be designed so that on-screen menus are accessible in real-time to individuals with disabilities, and all remote controls would have to contain a "conspicuous" buttons for activating closed captioning.

Disabilities community weighs in
A variety of disabilities advocates voiced support for the bill at Thursday's hearing. (Its working title is the 21st Century Communications and Video Accessibility Act, although it has not yet been formally introduced.)

At the moment, federal rules require all TVs with screens larger than 13 inches to contain chips to display closed captions. But that's no longer sufficiently stringent as the popularity of videos delivered via cell phones, laptops, and MP3 players surges, said Russell Harvard, a deaf actor who played Daniel Day Lewis' adult-age son in the Oscar-nominated film There Will Be Blood.

"I and others who cannot hear are left out of this whirlwind of technological change (because) hardly any of these smaller devices display closed captions," Harvard said, urging Congress to take closed captioning law "to its next level."

Jamaal Anderson, an Atlanta Falcons defensive end, recalled that at draft time last year, his mother was forced to "interpret" video clips of him that appeared on Web sites of National Football League teams and news organizations for the benefit of his father, Glenn, who holds the distinction of being the first PhD recipient to be deaf and black.

U.S. Army Sgt. Major Jesse Acosta, a longtime soldier who lost his right eye and vision in his left eye during a mortar explosion in Iraq two years ago, said it's not acceptable that of his three favorite television shows--CSI: Miami, CSI: New York, and CSI: Las Vegas--only one of them has descriptive audio. The Southern California resident, who spoke on behalf of the American Council of the Blind, said he was also dismayed that crawling alerts on his TV screen about potential emergencies, like earthquakes or mudslides, went by unbeknownst to him unless a family member of friend happened to be there to relay the message.

In 2002, the Federal Communications Commission set rules that required video operators to provide that video description service, but a court overturned those rules, arguing that they were contrary to Congress's intent. Part of Markey's bill attempts to restore those rules, which Acosta, who spoke on behalf of the American Council of the Blind, applauded.

New regulations: Necessary or not?
Democrats on the committee generally seemed to support Markey's plans, voicing concern about excluding people with disabilities from new technologies. Some Republicans, however, said that although they shared Markey's goals, they were skeptical about the need for new legislation.

"New regulations may not be needed because the technology and wireless industries are already taking the necessary steps to make sure their products and applications are indeed accessible to all people," said Rep. Cliff Stearns (R-Fla.), the panel's ranking member.

Some Internet video providers, including NBC and Fox's joint Hulu.com venture and Apple's iTunes store, already offer captioned programming. Last fall, AOL, Google, Microsoft and Yahoo formed a coalition called the Internet Captioning Forum, coordinated by public broadcasting station WGBH in Boston, that's designed to standardize captioning practices for Web hosts and content providers.

"I think they have figured it out," Larry Goldberg, WGBH's director of media access, said of that effort at Thursday's hearing. "What they need to figure out is how to make it pervasive," and Markey's legislation should help "light that fire" under those companies.

Wireless companies, for their part, already make phones that use voice recognition, software that will "read out" or magnify screen information, and other features designed to help sensory-impaired users, said Dane Snowden, vice president of external and state affairs for CTIA-The Wireless Association. All cell phones are compatible with TTY, also known as Text Telephone Device, which allows deaf or hard-of-hearing people to communicate through text, and about 40 phone models are compatible with hearing aids, he added.

"If we can sell products that are more accessible, we sell more products," Snowden told the committee. "We have a vested interest in this and a proven track record."

His group, which represents major wireless carriers and manufacturers, supports the concept of Markey's legislation but believes the current draft would "unnecessarily burden the industry with little countervailing benefit to the disability community," Snowden said.

Another potential problem with the bill is that it allows unhappy customers to file private lawsuits alleging violations of the disability requirements, said Ken Nakata, a former U.S. Department of Justice civil rights attorney who now works for the consulting firm BayFirst Solutions in Seattle.

Such a policy could actually undermine the rights of people with disabilities, he argued. It was, after all, private litigation that led to what he called a "disaster for the disability rights movement"--a court opinion in a case involving Southwest Airlines' Web site that essentially found the Americans with Disabilities Act applies only to physical spaces, not businesses on the Web.

Markey indicated he would consider the suggestions as the bill is finalized and said he hoped legislation could be passed by year's end. A committee aide told CNET News.com that he expects the bill to be introduced formally before Congress' Memorial Day recess.

AOL said Tuesday it has opened the interface to AIM Call Out, a move that will let programmers more easily build products that tap into the service for making calls over the Internet to mobile or landline phones

The Open Voice API (application programming interface) is freely available. Building it into a device, such as a phone with Internet access or with support for SIP (Session Initiation Protocol), can let people call using AOL's network and bypass much of the ordinary telephone infrastructure.

AOL charges fees for using the Call Out service, but the rates are compelling, the company argues. Calling within the United States costs 1.7 cents per minute; calling Beijing costs 1.5 cents per minute; and calling a mobile phone in the U.K. costs 20 to 25 cents per minute.

"Our offering and our rates are competitive with traditional landline and mobile carriers, as well as other VoIP carriers in the space," Brent Newsome, director of AOL's voice services, said in a statement.

The move is part of the Time Warner division's effort to expand its free AOL Instant Messaging network into revenue-generating areas. AOL has 62 million active AIM users, the company said.

It's not the only company making the move from IM to voice over Internet Protocol. Yahoo Instant Messenger, a top rival, said Tuesday it's moving off its in-house phone connection technology to that of start-up Jajah in the third quarter.

Sprint Nextel and Verizon Communications both see an opportunity to make a buck on their IP telephony patents after successfully suing Vonage Holdings last year.

On Thursday, Sprint Nextel said in a U.S. District Court in Wichita, Kan., that it was suing four small phone companies. Sprint alleges that Nuvox Communication, BroadVOX Holdings, Big River Telephone, and Paetec Communications are infringing on six of its patents.

Those patents, part of a larger portfolio of patents that cover voice over IP technology owned by Sprint, are the same ones used to successfully sue Vonage. The two companies eventually settled the dispute last year. And Vonage agreed to pay Sprint a total of $80 million, which includes $35 million for past use of the license, $40 million for a fully paid future license, and $5 million in prepayment for services.

Verizon Communications, which won a $120 million settlement from Vonage last year, is also asserting its patent claims. Earlier this month the company filed a suit in the Eastern District Court of Virginia against cable operator Cox Communications for infringing on eight patents that had to do with voice over IP technology. Two of the patents in the Cox case are the same ones Verizon successfully sued Vonage for infringing.

Since Sprint and Verizon have already successfully asserted these patents, it certainly strengthens their new cases. And it's very likely the companies will either win in court or be able to pressure these companies and any other VoIP providers into licensing deals.

This is very good news for Sprint, which would benefit greatly from turning its existing patent portfolio into a cash cow. The beleaguered cell phone carrier has been bleeding customers and is in desperate need of new revenue growth to boost earnings.

Dell has entered a partnership to take to Fonality's affordable VoIP phone systems to small and midsize businesses.

This is big news for the VoIP world--and for the open-source Asterisk project underlying Fonality.

Dell will be selling the Fonality VoIP Phone System through its global SMB sales organization, as well as its channel.

Needless to say, the opportunity is huge. According to a Dell'Oro Group group analyst quoted in The Wall Street Journal (PDF), 35 million small businesses worldwide are expected to adopt VoIP calling over the next three years.

Fonality brings to the table a product designed to be easy to use and directly installable. Dell brings its market reach and brand. It's a good deal for Dell. It could be the making of Fonality.

Look at the math.

Can members of Al Qaeda use voice over Internet technology (VoIP) to avoid wiretaps?

Recent comments by Michael McConnell, Director of National Intelligence, seem to suggest that terrorists could create significant roadblocks for the National Security Agency by simply routing their traffic through the U.S.

Mike McConnell: I'll have some of what he's smoking,

(Credit: Office of the Director of National Intelligence)

The incongruously named Protect America Act of 2007 gutted the existing Foreign Intelligence Surveillance Act (FISA), and allowed the National Security Agency to significantly expand its surveillance powers. It's set to expire in February, and the Administration is looking for reasons to justify extending the law. With perfect timing, Michael McConnell, Director of National Intelligence, has come to the rescue.

An interview published in the upcoming edition of The New Yorker quotes him, stating that,

"McConnell said that federal judges had recently decided, in a series of secret rulings, that any telephone transmission or e-mail that incidentally flowed into U.S. computer systems was potentially subject to judicial oversight. According to McConnell, the capacity of the NSA to monitor foreign-based communications had consequently been reduced by 70 percent."

Conveniently enough, if Congress passes legislation to further gut FISA, the NSA will be able to resume its warrantless snooping on the terrorists, the troops will be safe, global warming will cease to be a problem, and no more puppies will have to die.

While the average privacy geek would consider an NSA wiretap of an undersea fiber-optic cable carrying millions of phone calls to be surveillance, it turns out that the law does not agree. As per the existing FISA rules, anything the NSA does outside of the U.S. does not count as electronic surveillance, and thus does not require a warrant. Thus, any wiretapping that happens in Iraq will never require approval of the FISA court, with or without any new legislation being passed.

AT&T and the NSA: best friends forever

(Credit: Electronic Frontier Foundation)

(I'm not the only one to call bs on McConnell's claims. Wired's Ryan Singel is offering a $1,000 wager that "when and if those rulings are ever released, we'll see they say no such thing." Clearly, the pay over at Wired is far better than CNET. While I can't offer the same level of money as Ryan, if McConnell does turn out to be telling the truth, I'll promise to switch my telephone service to AT&T--thus sending a little bit of money to the NSA's best friend forever.)

However, for the purposes of this blog post, let's assume that McConnell is in fact telling the truth. Let's assume that a phone call between two members of Al Qaeda in the Middle East that happens to flow through a U.S.-based server automatically kicks in a requirement that the NSA get a FISA warrant before it can listen in--even if the tap is conducted in Iraq, or under the Atlantic Ocean.

It's not surprising that this would be alarming to the NSA. In a previous interview, McConnell claimed that each FISA warrant takes more than 200 man hours to process. Were every member of the Iraqi insurgency to route his communications via the U.S., the NSA would presumably become the largest law firm in the world.

Which brings me to the point of today's blog post. If McConnell is to be believed, Al Qaeda merely needs to switch to using U.S.-based voice over IP services, and it can immediately crush the NSA under a pile of FISA paperwork. No matter where the NSA actually tried to intercept the Internet-routed phone call, a FISA warrant would be required. For $24.99 a month per terrorist, Al Qaeda could launch a gigantic legal denial of service against the folks at Fort Meade. Furthermore, now that the iPhone has been hacked to support VoIP software, the VoIP-subscribing terrorists could communicate in style.

Of course, the problem with using most commercial VoIP solutions is that phone calls flow over the wire in the clear, making it trivially easy for our spooks to listen in once they've dealt with that pesky matter of the warrant. Thus, any smart terrorist worth his salt would most likely use encrypted VoIP software, such as the uber-fantastic Zfone project, which can be had for free.