Skype creeps under phone giants' radar

[BJ_M]

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."


http://news.com.com/Skype+creeps+under+phone+giants+radar/2100-7352_3-5557950.html?tag=st.rc.targ_mb

[VCDHunter]

This seems promising, I was talking to my mate in Brazil the other day and he commented on the fact that Skype is far better than the Brazilian phone network where he is.

[northcat_8]

you knew it was just a matter of time before phone companies went belly up.

No matter how good they make their hardware and their service...they can't do better than free

If a cell phone company ever just charged a flat rate and did not charge for minutes, hard line companies would already be broke.

[VCDHunter]

If a cell phone company ever just charged a flat rate and did not charge for minutes, hard line companies would already be broke.

Yup, of course that would also mean an end to the internet in Britain.

[northcat_8]

If a cell phone company ever just charged a flat rate and did not charge for minutes, hard line companies would already be broke.

Yup, of course that would also mean an end to the internet in Britain.

Or that would mean big money to whoever puts up the first Wireless network access

[VCDHunter]

If a cell phone company ever just charged a flat rate and did not charge for minutes, hard line companies would already be broke.

Yup, of course that would also mean an end to the internet in Britain.

Or that would mean big money to whoever puts up the first Wireless network access

This is Britain mate, it would take decades

[Doramius]

WiFi is starting to make it's push and have low cost availability. At CES here in Vegas, there was a lot of talking about wireless broadband cards. Now I know that's nothing new, but if you have an antenna that can connect to cellular towers at 10+Mbps, or satellite at 3-5+Mbps at costs around $30-$40 a month, That is most certainly worth talking about. The card you would buy would be purchased and setup the same way you would purchase and setup a cell phone or satellite cable service. You can take you equipment virtually anywhere and connect. An advantage of this would be for rural users who currently pay $70+ a month, just for 1.3Mbps service, plus they must have the cable service and expensive equipment for it. THe cool thing about the computer satellite is there's software that automatically detects where the satlellite is. You just have to know where magnetic north is. They guy at the convention demonstrated the by setting down a satellite dish the diameter of a 10" dinner plate. Lined up arrows on the base of the dish with magnetic north & south, then had the choice of inputting approximately where he was by entering any 1 thing from city, zip code, lattitude & longitude, or even telephone country & area code. The thing has motors in it and automatically searches & follows the signal wherever you are. However, the satellite unit currently costs about $5500 and monthly service plans start around $150 a month, but they say the cost will be dropping in the near future as they push the technology more into the public.