[jcoley2]

I am cutting and pasting the WSJ article today (since many of you probably do not subscribe) detailing the forthcoming iPhone App from Sykpe:


Skype to Launch iPhone Software
Net-Calling Unit of eBay to Compete More Directly With Wireless Carriers


By GEOFFREY A. FOWLER and AMOL SHARMA

EBay Inc.'s Skype unit plans to release a version of its Internet-based phone software for Apple Inc.'s iPhone.

The move, set to be announced Tuesday, puts Skype more directly in competition for wireless voice services with network operators such as AT&T Inc. and Verizon Wireless.


Skype
Skype's iPhone application, above, allows free calls to Skype users on computers or supported cellphones with Wi-Fi.
Skype's software, which can be downloaded free, allows iPhone users to call other Skype users on computers or supported cellphones free if they are in a Wi-Fi hot spot. Or they may call land lines for a fee, typically 2.1 cents a minute.

Skype uses a technology called VOIP, for voice over Internet protocol, which treats calls as data like email messages or Web pages and routes them over the Internet, rather than a traditional phone network. It says it has more than 405 million users around the world. The company is also the world's largest provider of cross-border voice communications, according to the Telegeography unit of research firm PriMetrica Inc.

Skype's chief operating officer, Scott Durchslag, said the iPhone product is part of the eBay unit's strategic push toward cellphones, as opposed to the calls from computers, for which Skype is known. Mobile devices are "where the majority of the world's conversations are happening these days," he said. "It is the No. 1 request that we get from our customers."

Skype already offers software for smart phones using Microsoft Corp.'s Windows Mobile operating system, which the company says has been downloaded 12 million times since 2005. It released a version of the software in January for the Android G1 phone, a product backed by Google Inc., and says it will introduce a version that works on BlackBerry devices later this year.

Skype's march into mobile communications could threaten the business models of wireless carriers, which generate the bulk of their revenue from cellphone calling plans. One sign of that tension is that the Skype iPhone software makes calls only when users are connected to a Wi-Fi network, and not over the AT&T 3G data network that U.S. iPhone users already pay to access. Wi-Fi offers short-range wireless broadband Internet access around a "hot spot."

The software would also work with the iPod Touch -- which offers the same Wi-Fi capability as the iPhone without having to buy a cellphone plan -- but would require the user to purchase a microphone.

Mr. Durchslag said Apple's terms of service for software distributed through its iPhone App Store forbid Skype from accessing the AT&T 3G data network. An Apple spokeswoman didn't respond to a request for comment.

AT&T, the exclusive network operator for the iPhone in the U.S., declined to comment on Skype's mobile business. The operator's terms of service for wireless data users don't specifically bar Internet calling on its other devices, but generally prohibit applications that would strain the company's network with too much data traffic.

Mobile data services can be expensive. Verizon, for example, charges about $2 a megabyte on some Web browsing plans, and a Skype call typically requires one to 6.25 kilobytes a second -- translating to about $4 in data charges for a 10-minute call. Such charges might undermine Skype's attractiveness, but users have the option of buying unlimited data-usage plans.

Skype said not all network operators block its software's access to the mobile network, for example, in Europe where consumers, not operators, choose which handsets and software to use on mobile networks. "In general, there is a trend towards openness in these areas," Mr. Durchslag said.

In the U.S., the company says Skype can make calls over the 3G network on Android G1 on Deutsche Telekom AG's T-Mobile, as well as on the HTC Touch Pro on Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC. Verizon Wireless spokesman Jeffrey Nelson said smart-phone users may be able to download and use Skype, but "we don't offer or support the service. So buyer beware."

Carriers see the benefits from treating their own voice traffic as data in the long run. "We are headed into a VOIP world," Mr. Nelson said. But for now, they have to protect their legacy cellular business, which is especially crucial as the land-line voice business declines.

Mr. Durchslag said he thinks operators will come to see the advantage of allowing Skype to function on their networks, because it could help them attract customers and bring additional revenue from selling data services.

Skype has made inroads with one mobile phone operator: Hutchison Telecommunications International Ltd.'s 3 service, which operates networks in the U.K., Hong Kong and elsewhere. The companies worked together to create Skypephone, a special integrated handset and service package targeting Skype users, which launched in 2007. Over 500,000 Skypephones have been sold.

Mr. Durchslag said he is in discussions with other major network operators about revenue-sharing partnerships for Skype use but declined to say which ones. "We are willing to cut the deals that make sense," he said.

Mr. Durchslag said Skype, as a software company, has an advantage over network operators and handset makers in attracting customer loyalty. "We are not tied to a single device. We are not tied to a single network. We are ultimately the most flexible and personalizable vehicle for communication," he said.

[Gargoyle]

Or you could have linked to a site that wasn't a pile of crap that required you to register just to read the news.

Anyway, I think this is pretty cool since I probably use Skype more than any other IM client at the moment.

[Wrao]

the iPod Touch version is kind of interesting. It doesn't really make sense to ditch your cell phone plan just to buy an iPod touch and get free wifi calls. But... it almost kind of does. It's the type of thing that someone could take advantage of with a little ingenuity and persistence. Although the amount of open networks out there is diminishing as people learn more about how to use their routers, and also with more routers shipping with encryption on by default. Still though. Voip technology has always been compelling, and it seems like it is just a matter of time before it is really feasible to use regularly.

[CitizenTony]

The apps out and I like it. I'm trying to buy my nephew a 12 month sub. though, and am being redirected to a Taiwanese site called PChome.com. Whenever I click buy credits or anything else on the Skype.com site. When I click English on that site, it's an ad for a Skype Phone.

Is this normal? It makes me not want to deal with Skype that's for sure. Feels like a damn scam or a hack.

[chucker]

Originally Posted by CitizenTony The apps out and I like it. I'm trying to buy my nephew a 12 month sub. though, and am being redirected to a Taiwanese site called PChome.com. Whenever I click buy credits or anything else on the Skype.com site. When I click English on that site, it's an ad for a Skype Phone. Is this normal? It makes me not want to deal with Skype that's for sure. Feels like a damn scam or a hack.

PChome is apparently Skype's partner in Taiwan. Perhaps your Skype account has the wrong country setting?

I've purchased Skype credit before and have never had any problems.

[Bryson]

So, when you click: Buy Credit, you go to another website? That's not what happens here - it goes to secure.skype.com


A google search says this:

http://support.skype.com/en_US/faq/F...earch&q=pchome

[CitizenTony]

Right, and I've already read that. I don't get why it's doing it though. I'm sitting in TX. My account, and my nephews, and one other is doing it.

Takes me to...

http://skype.pchome.com.tw/skypetwwe...e/service.html

I've just cleared my cache and logged out. Restarted Safari and clicked buy credit without logging in. Same thing. wth?

[CitizenTony]

I made him a new account using the windows Skype app and then logged into the Skype site with that one. Now it's not redirecting and everything is fine.

We made his account with the iPhone and I think that's causing the problem somehow. I don't know why my old account and his old account also sent us to the Taiwan site though.

I'm a bit nervous paying for the monthly unlimited plan now, given the possible problem of getting redirected again.

[cosus]

Doesn't Fring already do this?

[scratt]

Yeah. Fring is ok. But an official Skype app is much better.

[surjones]

I set up a SkypeToGo - but I am concerned about this - (anyone know what this means?) You make a call to your local Skype To Go access number. Please be aware that your local phone operator may charge you for this call.


Okay, so I guess I just dont get this Skype on the Go. I mean whats the point of having a Cell Phone with service plan, and than playing for a monthly subscription with Skype, and getting Skype local phone number, if you are going to just use minutes anyways?

I have made a call from my iPhone - Called my Sprint cell phone, I come up as a Blocked or Unknown Caller, but it actually works. The question is how. LOL I guess also this plan is only good for outgoing, and you cant get incoming.

[cosus]

Originally Posted by surjones I set up a SkypeToGo - but I am concerned about this - (anyone know what this means?) You make a call to your local Skype To Go access number. Please be aware that your local phone operator may charge you for this call. Okay, so I guess I just dont get this Skype on the Go. I mean whats the point of having a Cell Phone with service plan, and than playing for a monthly subscription with Skype, and getting Skype local phone number, if you are going to just use minutes anyways? I have made a call from my iPhone - Called my Sprint cell phone, I come up as a Blocked or Unknown Caller, but it actually works. The question is how. LOL I guess also this plan is only good for outgoing, and you cant get incoming.

Same home/cell # and when wifi, it's cheaper... better international rates?