[IP] another view of Skype VoIP
Don't Believe the Skype
By Dave Mock
April 7, 2004
With Federal Communications Commission (FCC) Chairman Michael Powell still
wrestling with how the U.S. government should or should not regulate
Internet telephony, provider companies haven't skipped a beat in pushing
ahead toward the age of voice over Internet protocol (VOIP).
Major carriers and equipment suppliers such as Verizon Communications
(NYSE: VZ) and Nortel Networks (NYSE: NT) have been hustling to deploy new
VOIP capable equipment and services. Smaller start-ups, such as deltathree
(Nasdaq: DDDC) and privately held Vonage, have also been aggressive in
trying to carve out a profitable niche in the future of data telephony.
Recently, another popular private player leading users into the convergence
age -- a company called Skype -- announced software that enables mobile
calling over data networks. With the software, voice calls can use
broadband access points (Wi-Fi hotspots) and the Internet to complete calls
between users. Because the calls need to originate and terminate on devices
using Skype's software, it's referred to as peer-to-peer (P2P) telephony
(it can't call traditional phones -- yet).
The company announced the slimmed-down version of its desktop software,
called PocketSkype, for use on Pocket PC devices using Microsoft's (Nasdaq:
MSFT) Windows Mobile operating system. Of course, the Pocket PC must have a
Wi-Fi card and be in range of a hotspot to make the call.
Skype CEO Niklas Zennstrom touted the new offering in an interview: "Say
that you're traveling. You just fire it up in your hotel, in Starbucks or
wherever, and you can start making and receiving Skype calls completely
free of charge."
Cool. The only problem is -- it's not completely free. Heck, it's not even
partially free.
Who told Mr. Zennstrom that Wi-Fi in Starbucks (Nasdaq: SBUX) is free? Much
to the chagrin of many wireless geeks (myself included), most venues
offering Wi-Fi services charge for access -- and it's anything but cheap.
Daily access fees at many hotspots in hotels and cafes run anywhere from $5
to $8. Monthly subscriptions for unlimited use go for $20 and up. And
cheaper levies are often contingent on subscribers signing up for
additional services.
So, for those who are dreaming of dumping all your fixed and mobile
carriers for free VOIP calls, go back to sleep. Keep a watch on Skype,
though, like other VOIP offerings, it's a great product with a tremendous
value for users. Just don't expect it to displace traditional services
anytime soon.
Talk about wireless industry developments with other Fools on the Wireless
World discussion board. You can try out our boards for free for 30 days.
Fool contributor Dave Mock is so cheap, he'll walk five miles uphill in the
California snow to reach a free Wi-Fi hotspot. He'll just stop at Starbucks
-- a stock he owns -- to pick up a latte on the way. Dave owns no other
stocks mentioned here.
About The Motley Fool | Email Newsletters | Fool Radio | Newspaper Column |
Work at The Fool
Contact Us | Advertise | Fool Disclosure | Help | Site Map
Legal Information. ©1995-2004 The Motley Fool. All rights reserved.
-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
http://v2.listbox.com/member/?listname=ip
Archives at: http://www.interesting-people.org/archives/interesting-people/