Skype buying Gizmo5 would finally bring the necessary growth to SIP

Andy Abramson wrote a really nice blog post on "Why The Gizmo Sale to Skype Rumor is Good For The Industry". I couldn't agree any more with him. Andy is just right, Amen to that.

Dear Skype, please buy Gizmo5! Together you can develop a real Peer-to-peer SIP and don't need JoltID anymore.

Andy's blog post sums up the advantages that a SIP based Skype would bring to other VoIP companies like OnSIP, Voxbone, Truphone, ifByPhone, xConnect, Voxygen, Thomas Howe, Voxex, Cloudvox, Twilio, Broadsoft, etc. The list goes on and on.

But I also see an other advantage: I think that such a deal would bring the necessary growth to the SIP world. The number of real SIP users, who can always call each other for free over the internet, hasn't grown as needed. SIP grows much too slow to be a viable alternative to PSTN phone networks, half a billion new users from Skype would mean a big boost.

When I started tinkering with VoIP, more than 3 years ago, I hoped that soon all calls would be free because everyone would switch to SIP. That never happened, I am still the only one of my friends who you can call directly on his SIP address. The model didn't scale as I hoped.

Of course our phone calls became much cheaper because now we all have these flatrates for fixed lines, which are included for free in our broadband contracts. Every one of my pals can call me for free wherever I am. As a VoIP user I take my German phone number always with me, all over the world I can connect it an be reachable as if I was in Berlin. Maybe next time I'll answer your call from Lima, Peru. I can call my friends for free too, because my DSL contract got a free flatrate for fixed lines added although the contract got cheaper.

But all these free calls touch the PSTN and they aren't what I had dreamed of. If Skype steps in and brings half a billion users to the SIP world, it would be a great win. Maybe people would do then what I always try to convince them: Ditch their landline and go VoIP only as I did.

Why Skype maybe right about killing its Extras developer program and being careful with APIs

So Skype kills its Extras developer program and everyone in VoIP and his dog is up in arms. I am not to happy either, but I think I understand the VoIP market leader: Skype has to be very careful because Skypeout is by far not the cheapest solution for internet phone calls. Competitors like Sipgate or Betamax always stress this point in their press releases. E. g. on August 5th, 2009, I got this email from the Betamax company Voipbuster:

As it is now becoming more and more clear that Skype’s services will not be available much longer because their software license will expire, it is now the time to switch to VoipBuster. [...] To make sure everyone can still use Voice Over IP at even cheaper rates than Skype, Voipbuster has lowered loads of destinations.

Sipgate basically said the same with its lates press release on August 19th, 2009. Everyone wants to eat from Skype's lunch.

If Skype allows developers to treat the call function as a service inside of other applications, it can only loose. When people can make their Skype calls on Facebook, Outlook, normal phones or wherever, they will use Skype only for inbound calls and for the free Skype to Skype calls. Outbound calls to phone networks (PSTN) will be channeled over Skype competitors who offer cheaper prices for their SIP services.

With some VoIP tinkering, I have already achieved most of this: I receive Skype calls on my normal phone, which is connected to a small PBX device (Fritz!Box), outbound calls to the PSTN go over cheaper competitors. So Skype never gets money from me. The only thing that is still missing are Skype to Skype calls from my Fritz!Box. They would be possible if Skype was more open, they way I already make and receive Gizmo5 calls on this box (which, BTW, doesn't earn money from me either).

If Skype allows that too - they will never see me again, although I would be a daily freerider on their network. I would not pay for Skypeout (as I already don't do) and I wouldn't even open their software on my PC, which they could at least use as a screen for visual advertising.

I repeat my concerns: If Skype opens too much, they can become the dumbest pipe of all. Other companies and services would channel their calls for free over Skype's gratis P2P network. Gizmo5 already does it with their OpenSky service: It let's you "call Skype or receive Skype calls" on SIP devices (at least they say so). Gizmo5 thus piggybacks its service on Skype's network and charges its users $20 per year for OpenSky. Skype gets nothing, that's the disadvantage of not having an own phone network but APIs. Truphone, Nimbuzz and Fring offer similar Skype services for mobiles.

I guess the new Skype owners have already considered this.

Finally Fring reveals how it wants to make money

Many people were wondering during the last two years how the Israeli mobile VoIP company Fringland Ltd. wants to make any money. Their versatile software works on virtually every platform and supports more than 1.000 mobile handsets. I heard that 200.000 new users sign up every month to Fring, as well as 80 companies which want to become a SIP affiliate. More than 500 SIP companies are already using the Israeli software as an easy to deploy solution for mobile VoIP, by sending a preconfigured Fring to their users' handsets or telling their customers how to use it. Fring invested heavily in software development and has to channel the other 500 companies' traffic over its own servers. Every voice connection goes first from the cellphone to Fring's servers, no matter if it's on Skype, SIP or Google Talk. Fring could take its share from the other companies' earnings, but hey do it for free. Also there is no paid version of Fring. All these business ideas are still in the cloud.

So how does Fring want to make money?

The cell phone multi messenger, which also serves perfectly for nearly free VoIP calls over 3G, should soon be sponsored by advertising. At the OSiM World conference in Berlin I saw an unreleased software version with banner ads for McDonald's in Fring's chat window. In a former occassion I could already see advertising by Gillette. The Israeli company with $20 million in venture capital seems to finally care now for revenue streams. Although CEO Avi Shechter had told me in February in an interview at Barcelona's Mobile World Congress that the entire year of 2008 would be dedicated exclusively to software development and revenues would be irrelevant. "The McDonald's banner ads are just a demonstration", said Fring's cofounder Boaz Zilberman when we met in Berlin. So until now Fring makes no money from advertising but is proving the concept.

Fring with McDonald's banner ad on a Nokia N95 8 GB | Foto: Markus Göbel

One problem is, says Boaz, that mobile advertising is not very common yet. The advertisers still don't understand it and therefore employ only small budgets. But these small budgets would be eaten up immediately on the millions of daily Fring messages. That's why the company is going for bigger clients and advertising networks like Doubleclick or others. Context sensitive advertising like at Google Mail is not on the agenda. "We would have to read every chat message", says Boaz. "But we don't want that because it would hurt our users' trust." The business model of another Israeli born company seems creepy: Pudding Media is even eavesdropping their users' conversations to deliver targeted advertising at the computer screen during the phone calls.

Fring is now developing from a sole software for messaging and VoIP to an universal contact solution, which even keeps track of your buddies' location by GPS. The latest version 3.36.6, which you can only download from Fring's developer website, has already joined the menus for messengers and social networks. The boundaries between these categories are every time more blurry, because for instance Facebook is also an instant messenger now. In future software versions, every person should appear only once in Fring's contact list. Until now some people appear twofold, threefold or even more times - because they are connected to Skype, MSN, ICQ or other services at the same time. One click at the buddy's icon will start a chat, no matter which messenger to other person is using, which can always be escalated into a Fring phone call via VoIP.

Markus in The Industry Standard and TMCnet

Yesterday was a very good day for my small blog. I got quoted in The Industry Standard, VentureBeat, TMCnet and the Voxeo blog with my findings about Hipsip and the free bridge from Skype to phone.

That feels good.

A free bridge from Skype to phone

Do you remember my blog post "A SIP address for Skype? Better the other way around!"? This mission has now been accomplished. As of yesterday you can call me on Skype and I will answer this call on my desk phone or cell phone using SIP VoIP telephony. As I always try to achieve, this is a totally free solution.

I have joined Voxeo's developer program for their Evolution application, a visual design tool for interactive voice response (IVR) systems. Part of the deal is that you get a strange phone number with a +990 country code. There is no country associated with this code and Skype users can call these numbers for free. My Skype account is now being forwarded over Voxeo to a SIP address from Gizmo Project which I manage on Voxalot to make use of it's call connection rules and voice mail.

Have a peek on my settings:

A better explanation can be found at the Voxeo support forum. I wonder what VOIPSA's Dan York would say. In January he started a discussion with his blog post "Skype says "No" to VoIP interoperability - *because customers aren't asking for it!* - Well, I am!". He is, by the way, working for Voxeo and this partly solution for his problem comes from his own company. So I guess he was always aware of this trick.

I am happy now that people can call me with Skype and I don't have to keep me computer running or buy a special Skype phone for this purpose. That's the reason why I nearly never used Skype. I don't like applications which keep me tied to my computer in order to receive messages or phone calls, like Skype or the MagicJack normally do. Let's see which other solutions I can develop with Voxeo. Their visual tool makes the design of VoiceXML fairly easy.

Call Skype contacts from a mobile phone's browser with Hipsip!

Hipsip is a nice and easy mobile VoIP service which let's you call Skype and SIP contacts from a normal cell phone without a Wifi or 3G data connection. In the last weeks I could try out the service as beta tester and now they open to everyone. Hipsip does basically the same like iSkoot or Mobivox, but is easier to handle. You don't have to install a software on the mobile phone or talk to a computer voice to establish the connection. The user just opens a mobile website where he sees his Skype contacts and calls them with a click on the name. The phone then starts a GSM call to the nearest Hipsip callthrough number where a server converts it into a Skype call. In my case it goes to a landline number in Hamburg, Germany.

Screenshot from the Hipsip mobile website.

One big difference is that Hipsip has no hosted bridge from the cell phone network to Skype. Your computer must always be switched on and you have to install a small software called Hipsip Bridge which has to be running together with Skype. Otherwise the mobile website on the phone says "Please connect your Hipsip Bridge to see your Skype contacts." That is a big disadvantage to the other mobile phone Skype services like iSkoot, Mobivox and Fring. But at least it's cheaper than ideas from SkyQube or VoSky. They not only require you to leave your computer running, but also to buy an extra hardware which hands your mobile phone calls over to Skype. Again, they also let you receive Skype calls on a cell phone.

Call your Skype contacts with one click on a hyperlink.

If the Hipsip Bridge doesn't run, you can still call every SIP address of choice or even email addresses, which will be explained later. I conducted a small email interview to the developer Christian Rees. He comes from Germany himself, where he long time ago used to write about Atari ST computers for the famous c't magazine. On the phone he had told me that they are already considering a hosted solution without Hipsip Bridge, but that's not so easy.


I see that you use HTML code like <a href="tel:+4940306988028">Call sip:johndoe@ipcall.com</a> on your mobile website. What does it do? A computer's browser doesn't know what to do with it, but a cell phone starts a call.

The answer is, that the so called telephone URL, tel:, is supported on converged devices (in the sense that they support circuit and packet data) like cell phones with a web browser. When a tel: URL link with a phone number is clicked in the browser, the phone starts dialing the number. It works on all phones that are less then 4 years old. It's customary for the phone to prompt the user with the number, as a safeguard. Our users can be assured that we are only returning our local callthrough numbers.

Who is the company behind the Hipsip offer, Sipcall.com?

Sipcall.com Inc., the parent of Hipsip, is a California corporation with offices in Menlo Park. The company was founded in 2004, is privately funded and in the process of raising more capital. We are less then 10 people with backgrounds from academia, VoIP and the mobile industry. We consider ourselves an international company, that happens to be located in Silicon Valley.

Our history goes back quite a bit, starting in 1999, with the idea that email addresses will eventually turn into phone numbers. We attempted to raise funding in 2000, targetting the mobile space already back then. However, it took until 2004 for the climate to be right to start again with new ideas. In early 2005 we began developing the Hipsip Bridge for Skype. Due to our funding situation back then, it has taken until now for the relase.

What are your further plans?

We are planning to make Hipsip more useful and convenient for our users. One priority is to improve the Skype experience. We have already put emphasis on providing ISDN like voice quality for Skype calls over SIP, since Skype is so exceptional in this respect and we don't want to loose too much of that. However, there are limitations to the current phone networks. We are not so hot on vaporware, so we'll announce new features when they are available. And we are very interested to hear from users what they need.

When will it be hosted, so that my computer doesn't need to stay switched on?

See above, but it is a high priority for us.

And what about new features?

One novel feature that we provide is EmailCall. With EmailCall, a user can turn their email address into their phone number, so to speak. This is how it works: if the user has verified his mobile number and email address and opts-in to EmailCall, he can now be called by his email address:

• by dialing the email address on any SIP phone registered on Hipsip, which will ring the users SIP devices (you could say we are sippyfying the email address).


• from any mobile phone by entering the URL: hipsip.com/john.doe@aol.com (as an example). When the URL is entered, the current mobile number of the owner of the email address will be returned. This is limited to other users of Hipsip, and is strictly an opt-in feature. The user can change his current number anytime, while the much easier to remember email address can be used to look it up in real time, and dial immediately.

The idea behind this is, that we will eventually see a convergence in the addressing space just as we are seeing it with networks becoming all IP, so that a single SIP/email/URI address will be sufficient for all the different modes of communications for which we have to remember identifiers today. This day is not here yet, but we believe that it will eventually happen. Today it is already possible to dial a URI on the Nokia N-Series and E-Series phones, which works very well over WLAN and 3G. Things will only improve when pure packet networks like Wimax and LTE come online.

My take: we have to wait and see how Hipsip develops. The market for such services is already crowded. But nobody has built yet the perfect bridge from Skype to SIP. Hipsip has potential if they get the service hosted, but then they would have to cover higher server costs. The EmailCall is funny but nothing new. Jangl already does it for nearly a year.


Side note:
Respect to blogger hero Russell Shaw who unexpectedly passed away last weekend when he was on his way to cover the Emerging Technologies Conference and VON.

Bhaskar Roy: Qik should be a part of Nokia's Ovi

Qik is one of the greatest mobile internet applications I know. You just start the software on a Nokia N95, and yet you are broadcasting live video to everyone over the internet. Have a look at my company's Qik stream at Mogulus if you want to see the next transmission.



I immediately thought that this kind of live video broadcast is the last feature that's missing on Nokia's social platform Ovi. There you can already share photos, videos, comments and blog entries in more than 100 file formats. "We support nearly every existing file format”, said Serena Glover, Director Service Operations, Connect New Experiences at Nokia and ex CEO of Twango in an interview with me at the Mobile World Congress 2008 in Barcelona. But Ovi always keeps you waiting for your friends to upload a new video. You can't just tune when it's still being filmed. It feels more like Blockbuster video than real television. Unlike Qik, which lets you broadcast and see events while they are still happening.

"Absolutely! Qik should be a part of Ovi", therefore said Qik's VP Marketing and co-founder Bhaskar Roy when we talked in Barcelona. He also related how venture capitalists are competing to do his company's second round of funding. Our chat was very interesting and insightful. Who had thought that this Silicon Valley company is mostly based in Russia? While India born Bhaskar and his friend Ramu Sunkara run Qik together with some other Stanford graduates from the Californian city of Santa Clara, most of their employees live and work in Moscow. Nilolay Abkairov, who was a former speech codec developer for Skype mobile, and his team are busily porting Qik to all smartphone platforms.

His friend Alexi handles the video streaming issues, which make use of quite nifty technologies: The handset shoots the video as MPEG4 and immediately streams it as H.263 over a 3G or Wifi connection to Qik's server. There it's being transcoded into Flash for Qik's website or into a Realvideo stream for mobile handsets. "Qik is developing a new live streaming to other mobile handsets”, says Bhaskar. "You won't even need a browser to watch a livestream. We send a Realvideo stream directly to your friends' cell phones."

So soon the cell phone will not only be a camera but also a tv set. Everyone is a sender and a receiver at the same time – if he has the right handset. "Qik works on all S60 platforms and a version for UIQ is in development”, says Bhaskar. "A version for Windows Mobile will be launched soon.” Their aim is to make Qik work on every possible camera phone. That's why the team in Santa Clara is also developing a Java client for cheaper handsets. They even tested Qik successfully on phones with just 100 Megahertz CPU and only an EDGE connection to the mobile internet. "Qik consist of a layer that's different for every platform and a platform independent layer”, explains Bhaskar. "That's why it takes only some weeks to port Qik to a new platform."

So while the future looks technologically bright for Qik, I asked Bhaskar how his company wants to earn money. Until now the service is free and Nokia hasn't made an offer yet. "In this year we will only concentrate on consumer acquisition”, is his answer. Advertising on Qik's website would be easy to implement, like Google does it on Youtube. Also companies could sponsor certain channels on the website. "We could also offer value added services for very cheap prices like $1 per month", says Bhaskar. As an example for a premium service he mentions privacy. Until now every video appears directly on Qik's starting page as soon as you activate the camera. Every stranger can see it until you switch off or hit the "0” key.

Native Skype for Symbian announced – not by Fring and not by Skype

One thing I heard in Barcelona was that the mobile network operator 3 is not so happy with the 3Skypephone. People are allegedly using it like crazy and 3 is required to install more and more servers from the US startup iSkoot which powers the service. As you remember the 3Skypephone doesn't do mobile VoiP but makes an GSM call from the phone to the 3-iSkoot server, which then cannels them over the fixed line internet to Skype. The data connection is only used to show the presence of the Skype buddies. These iSkoot servers must be quite expensive.

Skype on mobile phones is generally a problem, said Eric Lagier, Business Development Director for Mobile at Skype, last year. A native version exists only for Windows Mobile devices because only they have a strong enough CPU. Symbian users already gave up all hope for a native Skype on their handsets. For more than two years they are waiting for Skype to solve its battery drain and latency problems. Only a prototype was reported in February 2006. Symbian users still have to rely on 3rd party applications like Fring, iSkoot or Mobivox – most of them eat up phone minutes.

But now a real native Skype version for Symbian cell phones will come out, I have been told at the Mobile World Congress. Maybe next week already. It will enable to make Skype calls over 3G and Wifi. The most interesting fact is that this software will NOT be released by Skype and also not by the Israeli software maker Fring, which until now was the only option for a Skype data call. Stay tuned and remember that you read it here first! I am quite excited to see when this rumour will really come true. Unfortunately I cannot tell the name of the company to not ruin their surprise.

To make money from mobile VoIP, companies have to accept certain realities

Jon Arnold has updated his very interesting portal website IP Convergence TV. This time I also wrote a guest opinion, because to make money from mobile VoIP companies have to accept certain realities: "WiFi isn't everywhere and callback costs double".

I love the mobile use of VoIP but I still find it quite uncomfortable. That's what I point out. Especially annoying is how Skype, Fring, Truphone and other SIP based VoIP services get blocked by German 3G providers. Sorry, Dean Bubley from Disruptive Analysys! The reality looks much darker for VoIPo3G than you predict for the future. (But thanks for your regular Google ads "3G mobile Voice over IP. Analyst report: is it a threat to carriers? Or a future opportunity?". I better put a direct link to your website.)

Mobile VoIP over Wifi works only at home or in the office where I don't need it. So in my guest opinion I advocate intelligent cell phone software which automatically completes calls as callback, callthrough, Vo3G or VoWifi while the user doesn't even notice. I have already installed an example software on a Nokia E61.

Maybe if more and more people use these options, Dean's dream will come true. If everyone uses only mobile callthrough, triggered by intelligent software on the handset, the mobile network operators cannot charge any other items than the tariff's included minutes for local calls. Their voice legacy cell phone networks would become dumb pipes into the internet, the way we already see it with the 3Skypephone or iSkoot, Ringfree, Mobivox, Jajah Direct, Sipbroker, Tpad, Rebtel, Mobiletalk, etc. If mobile operators wanted to charge for international calls at all, they would have to embrace VoIPo3G and could at least charge for data, the way Dean predicts it.

But until this comes true, the mobile VoIP companies should attack the incumbents with better callthrough options, to take more and more cell phone calls out of the traditional networks and into IP. Read the full text for further explanations!

Why there never will be a hosted-Skype-to-SIP

Phonegnome's David Beckemeyer has a great post, explaining why my dream of a "hosted-Skype-to-SIP" will not come true, as long as Skype doesn't publish its interface.

So don't blame the operators and service providers - blame the cause of the situation SKYPE! Skype needs to provide "data center" solutions if you expect more operators and service providers to deploy "hosted Skype" services.

Thanks for explaining how many hacks are necessary at Fring and Mobivox to build bridges to Skype. And please don't try to call me on Skype! I am most probably not connected.

Read David's post.

A SIP address for Skype? Better the other way around!

There is a much quoted explanation from Emoci of Toronto how to create a SIP address that will ring to your Skype name using the Net2Max.com service. It's quite difficult to implement but has received many kudos.

I like these kinds of solutions very much, but I would prefer it the other way around: that Skype rings my SIP address. So I would never have to switch on Skype again. I have all my SIP accounts nicely consolidated to ring my phone or my cell phone. I could do the same with Google Talk, Yahoo and MSN. Only on Skype I am nearly never reachable because I don't like communications that force me to switch my computer on. That's why Skype is Oldschool to me. VoIP has left the PC world long ago and goes along with me.

Mr Blog, David Beckemeyer, thinks the same:

I couldn't agree more, particularly "So I would never have to switch on Skype again." Why doesn't Skype simply offer a 'forward to my SIP address' option? Of course we know why. They want to keep everyone contained in their world. They say it's because Skype users don't want interoperability - if you are a Skype user, maybe it's time to tell them, not me. I agree with you! :)

That reminds me of the recent discussion started by Dan York: "Skype says "No" to VoIP interoperability - *because customers aren't asking for it!* - Well, I am!".

Me too. As well as Martyn Davies and the commentators to his post at VoIP User.

Ringfree brings VoIP callthrough with every provider to the iPhone

In the last weeks I was displeased with the state of VoIP on mobile handsets. Wifi coverage is spotty and callback services like Jajah require two phone calls at the same time, which makes them too expensive for penny pinchers like me. That's why I am a fan of callthrough applications which involve only one call leg. The call goes to a local number where a server converts it into a VoIP call. But unfortunately this needs numerous key strokes in addition to the destination number and makes callthrough a cumbersome activity.

Software like MobileTalk from Packet8 would help, but it is bound to just one VoIP provider and could be done much better. Unfortunately the underlying software from Mobilemax gets distributed only to companies and not to end users. So people have to wait until their VoIP provider of choice implements it.

But salvation is near, at least for iPhone users: RingFree let's you use every VoIP provider or even your own Asterisk / SIP server for outbound calls on Apple's "Invention of the year 2007" (according to Time Magazine). iPhone Atlas has the story:

Here, in a nutshell, is how the app works: A user registers with RingFree, entering his iPhone number and providing some other information. The user is then prompted to call a country-local number to confirm their information by entering a PIN. Once logged into the site, the user selects from a list of pre-defined VoIP providers (including VoicePulse, Gizmo Project, PhoneGnome and others) or defines his own by entering a proxy address, username and password.

After selecting or defining a provider, the user can access the Web app’s keypad, which looks something like the iPhone’s standard dialer, selects the preferred VoIP provider from a menu, and hits “Call.” The call sends a bit of JavaScript over EDGE to retrieve a local number from the VoIP provider, which the user is prompted to dial with the iPhone’s native phone application. When this number is dialed, the VoIP provider is triggered to dial the number entered in the Web app, and the call goes through.

RingFree is basically a website with a virtual dialer. It is linked to VoIP providers of choice and uses standard voice minutes to make VoIP calls. Therefore it doesn’t require any hacking or jailbreaking, nor does it require the presence of a WiFi network. Only a small amount of data is transferred over the EDGE network to signalize the call. The voice quality is reportedly good, and calls go through without too much delay so that a commentator at IntoMobile states:

Thank you for this. This is the most useful iPhone application yet. I set it up in less than 2 minutes and I made a call to Ireland using Gizmo Project. Sweet and simple. I am happy and would be jumping up and down with joy if it let me call Skypers.

That's exactly what I was looking for. RingFree is free in the first month, then it costs $30/year. You can also call Google Talk, Yahoo or MSN contacts from the iPhone. I wonder when someone will launch a similar service for other platforms, such as Symbian. It could be a great new feature for Voxalot, whose mobile callback I often use with my own VoIP providers. It costs €0.01 of data or less to establish the call, but still it demands two simultaneous phone calls.

First hand comparation from a Tringme Beta Tester and Ribbit Developer

My last blog post "Tringme does the Ribbit" received an interesting comment from a person who seems to know the topic very well. The anonymous commentator calls himself "both a tringme beta tester and a ribbit developer" and reveals that Ribbit applications will cost their clients an arm and a leg, compared to normal VoIP prices. Skype and Jajah will seem cheap compared to Ribbit. Although I hardly ever use them because I get my VoIP calls much cheaper from other providers.

I hope this comment wasn't just a plot from Tringme to take on Ribbit. To me it sounds reasonable. At the end both companies will suffer when Adobe makes Pacifica a standard VoIP feature for the Flash Player.

Read the entire comment from the insider!

3Skypephone doesn't do mobile VoIP

Many commentators didn't realize that the 3Skypephone doesn't really do mobile VoIP. Even my friends at Areamobile thought at first that a 3G data flatrate would be necessary to use it. It was quite easy to get this false impression as the press release only said:

29th October 2007 – Skype, the global Internet communications company and 3, the mobile operator, have launched a new affordable handset that lets you make free Skype to Skype calls and send free Skype instant messages from your mobile phone to other Skype users no matter where they are.

The 3 Skypephone is a fully-featured 3G Internet phone with Skype built-in. In addition to Skype calls the phone makes conventional calls and can be used to access 3’s broad range of other internet services.

3 customers using the 3 Skypephone will be able to make Skype calls and send instant messages on the move with the push of a button. This is the first time an operator has offered a mass market device which is tailor-made for free calling over the internet from a mobile. Now, all of Skype’s 246 million registered can be reached for free with the 3 Skypephone. ...

No more technical details were given. But the mobile Skype calls on the 3Skypephone are basically GSM phone calls, since it's the iSkoot service which is powering them. The day after the launch iSkoot could send out their own press release:

„CAMBRIDGE, MA – October 30, 2007 – iSkoot today announced that it has been selected by Skype to help power the 3 Skypephone – the first ever mass-market Skype-enabled mobile handset. ..."

This means that Skype calls from the 3Skypephone aren't 3G VoIP calls. They are GSM calls from the phone to the 3-iSkoot server, which then cannels them over the fixed line internet to Skype. The data connection is only used to show the presence of the Skype buddies.

The 3Skypephone doesnt really do any mobile VoIP, since it uses Skype only in the fixed line part of the call. The bad voice quality, that for instance Luca critizes, is not because of unreliable 3G coverage. Possible causes are the low sound quality of the GSM codecs or transcoding issues at a gateway level. Yet still iSkoot is a nifty solution to guarantee Skype coverage nearly everywhere.

That's also why their FAQ list says:

Q: Will it work on 2G, 2.5G& 3G networks?
A: Wherever you have coverage in the UK, Skype will work. If you can make a normal voice call, you will be able to make a Skype Call.

Now it's also obvious why the technology doesn't work outside of the 3 network: It relies on free on net calls from the 3Skypephone to the 3-iSkoot server. Luca said that "if you are roaming (in Italy in some places you are under Tim coverage and not 3) Skype calls don’t work".

The 3Skypephone is no new invention but just another marketing skin for iSkoot. Take that TIME magazine if you want to elect your next "Invention Of the Year". ;)

Jajah offers pure play VoIP over 3G, inconsistent with their No Headset campaign

The web based callback operator Jajah starts to offer real VoIP calls over a 3G HSDPA cell phone network in Japan. That's funny since it undermines their own "Smash your headset" campaign which Jajah uses to attack competitor Skype. But Jajah's press department again did a great job of reality distortion so that bloggers and old school media didn't realize the the contradiction. I already covered the topic for the German news website Areamobile where I now work more often.

Normally people have to pay double at Jajah. After they enter their own number and the callee's number on a web site or in a mobile phone, Jajah's server establishes two phone calls to connect them. That's not always the cheapest option, compared to calling cards or pure play VoIP, and has nearly nothing to do with mobile internet telephony. Jajah uses VoIP only in the backend to connect the calls. The callers just need a normal PSTN or cell phone to start a Jajah conversation. But now Jajah starts to change these rules with a new operation in Japan. The per minute price gets cheaper by eliminating the double calls and Jajah does more or less the same like Truphone.

The Japanese company Emobile will be the first mobile operator in this country to offer VoIP over HSDPA. The start is scheduled for October 18, 2007, and the application has been developed by Jajah for the "One Alpha" devices of Emobile, which until now were data only and could not make phone calls. The phone calls go over the Jajah network and cost per minute about 9.7 Euro cents to Japanese cell phones and 1.4 Euro cents to the PSTN. Emobile makes its money by charging a flatrate tariff for the VoIP and other data usage. Emergency calls or calls to free numbers are not possible, as we already know it from other VoIP providers. The VoIP application comes preinstalled on new devices, or can be installed on existing devices, and the customer only needs to sign up with Jajah, which gets him a 300 Yen (1.80 Euro cents) call credit.

I would really like to know more about this application, but the information is spare. Jajah did not send out an own press release and their public relations people don't know more either, I learned from emails and phone calls. The big question is how the new Jajah VoIP application looks from inside and if it's the first outcome of the recent investment by Intel. Jajah's co-founder, Roman Scharf, said in May 2007 on this occasion: "The deeper Jajah can be embedded into Intel solutions, the better for customers everywhere. It is our intention to bring a best-of-class, next generation solution to the market which can be embedded and optimized for any computing device." Fellow blogger Moshe Maeir then explained in his blog posts "Jajah gets $20m and Intel’s patents" and "Behind the scenes of the Intel, Jajah deal" how Jajah's access to Intel's patent portfolio helps to embed Jajah's telephony functions at the chip level of mobile phones.

Maybe that's what's happening now with Emobile? The birth of a new mobile VoIP hardware?

The funny part is that you have to connect a HEADSET to the "One Alpha" device from Emobile, which runs Windows Mobile 6.0, to make a Jajah call. That's so ironic since Jajah is badgering their opponent Skype yet for months with a campaign under the claim "If you liked Skype, You'll love Jajah". It makes fun of the fact that Skype users are tied to their PC and have to use a headset to make a call. "Jajah is revolutionary because it lets you make free and low-cost global calls using your everyday mobile or landline phone," said Roman Scharf in the regarding press release. "Services like Skype require headsets, software downloads and sometimes other technical equipment, making them way too hard for the everyday consumer to use."

With the new VoIP service from Emobile Jajah works exactly the same way. But at least nobody has to pay double for a phone call.

Or maybe Apple is the real telco disruptor?

Do you remember my post "Google is the real telco disruptor" from july?

Well, it seems that the story could become even more interesting with another player entering the 700 MHz wireless spectrum auction that many didn't have on their list: Apple might also bid for that "bech front property" spectrum, suggests a BusinessWeek article called "Apple Eyes the Wireless Auction".

Taking into account this possible development many pieces of the puzzle would fall into their place. Why is the iPod touch such a cool device, an iPhone without phone? Why did Apple cut the price for the iPhone so soon and drastically?

In Germany the association eco, alliance of 330 big internet companies, hailed already last week the new device by saying "Wifi iPod makes mobile internet a mass market" in a press release. They are fed up with the slow acceptation of mobile internet service on Germany because the incumbent mobile operators keep 3G data prices high and accept only walled gardens on their devices.

"T Zones, Web-n-walk und Vodafone Live all try to keep away the user from the free and open internet", says eco director Harald A. Summa. "Exactly this policy of closed networks has so far prevented the breaktrough of the mobile internet to a mass market. The success of iTunes and Youtube shows that the users know much better than the operators what they really want." The new iPod touch offers direct Wifi access to iTunes and Youtube, circumventing the closed networks of the mobile operators.

So, let's just imagine that the iPhone never planned to sell millions. Maybe it's real purpose is just to create buzz for the new iPods? The iPod touch has every feature that you like from the iPhone. It only misses the annoying part of the phone: A 60 dollar per month cell phone contract. New iPods could work without that contract, using the 700 MHz spectrum, suggests the article in BusinessWeek:

Signals at the 700Mhz spectrum, for example, could provide far faster Internet access than today's cellular or even Wi-Fi networks, and the signals can easily pass through buildings and work glitch-free, even in lousy weather.

Still, even the possibility of an Apple bid is intriguing. For starters, it would mean Apple would no longer need to rely on a phone company to deliver songs, TV shows, and other digital fare purchased at its iTunes Music Store. As it is, the major complaint of iPhone shoppers isn't with the phone, but with the pokey Net access from Apple's exclusive U.S. partner, AT&T (T).

If it owned its own spectrum, Apple could provide the network service itself, possibly for far less than the $1,440 iPhone owners must now fork out over the course of the cheapest two-year contract. For example, Apple could hold down costs by letting users choose a Net telephony program such as Skype rather than develop its own voice software, say analysts.

Apple might even be able to give away network service for free, and make its money off services such as iTunes and possibly by selling subscribers advertising space.

Indeed, cutting out the carrier would probably be in sync with Steve Jobs' view of the world. Before striking the iPhone deal with AT&T, he publicly dissed phone companies as little more than "orifices"—good only for providing dumb pipes to deliver more innovative companies' more innovative services.

"Apple is the most anti-carrier company there is," says the former Apple executive. "They're probably already frustrated with AT&T. If they put a few billion behind this, they could build a kick-ass network." Indeed, on Sept. 5, Apple announced a new iTunes Wi-Fi Music Store so consumers can buy songs at wireless hotspots, something they can't do on AT&T's network. And Jobs made a point of noting Wi-Fi is faster not only than the so-called 2.5G EDGE network, but also than 3G cellular networks.

A very convincing argumentation that matches perfectly with what eco said. That's also the reason why I had to copy such a long passage of the original article. (Sorry for that!) Hopefully it's not only intentionally leaked hot air to lift Apple's stock price.

My answer to Jeff Pulver's "Call for More Innovation in Voice Services"

Jeff Pulver and Ken Camp are bored from what they've seen in VoIP lately. That's why Jeff startet a "challenge for innovative disruptors with regards to the voice applications industry":

Think about presence and voice and instant messaging, take a look at the APIs of twitter and Facebook and pitch me on the service that you want to create. Those who get my attention might end up with the early-early seed capital needed to turn their dream into a reality.

So what could that be? Jeff doesn’t want to hear about a service that's simply a variation on Call Forwarding and/or Voicemail. It has to be something really different. Something cool. Something that truly helps to redefine communications.

I am really courious to see the winner of this competition. I don't know why Jeff is so excited about Twitter and Facebook. To me these applications are mostly a waste of time. But what I would love to have is a "Hosted Fring with Grandcentral's filter rules and international mobile callforward over GSM".

What does that mean?

I like Fring because it connects me with just one program to my contacts at Skype, MSN messenger and Google Talk. Lately it also works as a VoIP client. But only on my Nokia mobile phone!

Why isn't there a website that does the same like Fring? Why isn't Fring a hosted service? I would love to leave my login data for all these services on their website and connect to it over SIP from my ATA. A kind of Voxalot, but extended with Skype, MSN messenger and Google Talk.

Whenever somebody contacts me, my phone should ring. Outgoing calls to Skype, MSN, Google or phone numbers should also be made with my normal phone. The server would decide automatically how to connect the call, because it has call rules for that - like Voxalot has.

Incoming calls would be filtered like at Grandcentral. Annoying people could only leave a voicemail and good friends could ring my phone day and night.

This service should of course not only work over an ATA but also over the mobile phone network. Internationally! There are more and more international MVNOs slashing roaming charges and giving local fixed line numbers to mobile phones. This means they already have an own SIP infrastructure and GSM gateways in every country. If they can give me a local fixed line number in a country, they can also deliver cheaply the described calls from Skype, MSN, Google and my home VoIP providers over GSM.

Outgoing calls should be done the Nimbuzz way:

Call your IM buddies on their mobile or on their PC. At the cost of a local call, worldwide. No credits needed.

A small application on my mobile phone would always know which cheap number to call in every country to connect to the described network.

I am sure, that the despicted layout is possible. The guys at Fring, Grandcentral, Gtalk2VoIP, Skip2PBX and Roam4Free have already pieces of it in their hands.

More coverage about the challenge:

Andy Abramson, Jon Arnold, Pat Phelan, Aswath Rao, Alec Saunders, Russell Shaw and TIA Communities.

Skype Founding Investor invests in United Mobile to "deliver a combination of Truphone, Jajah and Skype"

Skype's founding investor Morten Lund is investing in the international mobile network operator United Mobile. That's an international cell phone company, comparable to Roam4Free, GoSIM, BlueSIM, Che Mobil, GlobalSIM, SunSIM, TouristMobile or others, which allows outgoing calls at low rates in over 80 countries and to receive free incoming calls without roaming charges.

Morten Lund seems to brim over with enthusiasm for United Mobile’s business strategy of combining its services with so called Web 2.0 functionality and says:

“The business rationale behind United Mobile’s decision to integrate Web 2.0 features into its service offering is compelling. The organisation’s key objective is to transfer the Skype model to the mobile phone for average Joe who is travelling. United Mobile will deliver a combination of Truphone, Jajah and Skype on a “One SIM card Service”. The company will be a leader in delivering free mobile telephony worldwide. This pioneering new business model will be widely adopted in the world’s leading mobile markets in the near future.”

Free mobile telephony worldwide? That's what we want! At least me and all the VoIP telephony tweakers out there who are always looking for the cheapest way to call.

But what about "Truphone, Jajah and Skype on one SIM card"? Is there something going on between these companies? As far as I know from my professional life, United Mobile would need an authorization to mention the other companies' names in a press release. So where Truphone, Jajah and Skype involved in the press release? Or is United Mobile just name dropping them?

Is there something going on behind the courtain? A dark power forging a new VoIP empire out of these four companies?

As far as I see, United Mobile should have the best rates to terminate international cell phone calls. Truphone, Jajah and Skype could envy them. Also United Mobile has its own SIM cards. It would be very convenient for Truphone, Jajah and Skype if they could start their services from a SIM card, instead from their rather slowly phone client or mobile web page. Also it's obvious that these three minute stealers cannot expect support from mobile incumbents. So it would make sense to cooperate with a worldwide mobile MVNO.

Truphone has just presented their new Multi-SIM capability, which supports travellers who take international SIM cards with them abroad. Calls to their Truphone number will reach them whichever SIM they're using at the time. That's nice, but could be even more convenient. Who wants to always change his SIM card whenever he or she arrives at the Airport? Maybe soon it's not necessary anymore to change the SIM card? When will we see a real TruSIM? When a JajahSIM or a SkypeSIM?

Get out of the closet!

Fellow blogger Moshe Maeir already explained here and here how Jajah's access to Intel's patent portfolio helps them to embed Jajah's telephony functions at the chip level of mobile phones. All these developments explain how VoIP companies drool over more speed on mobile phones. Their applications start pretty slow on often feeble and battery sucking cell phones. It takes a minute until you are connected to Wifi and have established a call with one of their softwares.

I guess: Either the four companies are developing secretly something together, to make their mobile VoIP applications start faster from a SIM card. Or United Mobile is developing an application to blow them all away. In this case they have just used the brand names of Truphone, Jajah and Skype for press release name dropping.

At least I'm sure that United Mobile's next press release can be even more interesting. What do you think?

Cellity gets funding from Skype's seed investor

In February Tim von Törne, VP Business Development of Cellity and former Germany head of Skype, told me that they were hoping for venture capital for an international rollout.

Cellity's business is a least cost router for mobile phones which allows mobile phone users to reduce their local call costs by 60 per cent and international call costs by up to 90 per cent. Before every mobile phone call a Java client checks in the background whether the call can be connected for a cheaper price trough Cellity's 0800 or local numbers. A good idea for low techies. I personally don't need it since I have a calltrough installed on my own ATA.

Now Cellity finally got their money, says the lates press release: Skype's seed investort Mangrove Capital Partners has invested in a funding round. Mangrove, which is based in Luxembourg, has participated alongside German VC Neuhaus Partners in the company.

Unfortunately Cellity seems to work quite crappy, tells Germany's savviest mobile phone nerd Henning Gajek in his latest blog post at Xonio.

Mobile incumbents agree to lock down alternative VoIP providers

The air is getting even thinner for mobile VoIP companies like Truphone or Wifimobile, tells The Register. The Open Mobile Terminal Alliance, a organisation of big mobile operators like Orange, Vodafone, T-Mobile and 3 has published a guidance for network operators and handset manufacturers on provisioning and maintaining VoIP settings on new handsets. It covers only the usage of pre-installed VoIP clients on handsets, such as that used by Truphone or Wifimobile. Applications which are downloaded later, like Fring or Vyke, go free.

According to the OMTP specifications, operators are entitled to remove or lock down VoIP applications on subsidised handsets, but they must provide the ability to remove that lock when the contract period expires, just as they now will release a handset to be used on another network (SIM lock).

Bad luck for some independent mobile VoIP providers, as the incumbents agree on that the initial VoIP settings should be securely protected in the terminal, and can only be changed by the operator. When the service contract comes to an end, the customer can request the provider to unlock the Terminal’s VoIP settings and associate the pre-installed voice applications with alternative VoIP service providers.

This means in most cases: No Truphone or Wifimobile in the first two years of a contract.

Much better off are independent mobile VoIP companies which install their own applications, such as Skype, Fring, Gizmo Project, Jajah, iSkoot, Nimbuzz or Yeigo. The customer may be able to install third-party applications (Java or other Terminal OS applications) that offer VoIP calling using third-party VoIP providers. The only VoIP applications that are forced to use the operator’s settings are those that were pre-installed on the Terminal, and only during the term of the contract that the Terminal was supplied with.

The mobile phone users must be informed that VoIP has been locked or disabled. So the removal of menu items, in the way that Vodafone and Orange crippled their Nokia N95, wouldn't be allowed. The Register states that the guidance is not binding to the member companies. But as so many network operators were involved in writing, it's surely what we will see next on the entire European or world market.

Let's see if that's acceptable to regulators such as UK's Ofcom and what e. g. Truphone will do. Their new software Truphone 3.0 is so feature rich and has presence functions so that it seems quite similar to the mentioned "alternative VoIP applications" to me. If Truphone 4.0 packed it all in the software, instead of using Nokias underlying SIP functions, they would be out of trouble.

But then Truphone would suck as much battery as Fring does.


UPDATE:

I got an email from Wifimobile's John O'Prey. He says that his company is NOT affected. "This is not the case as our client is a stand alone application which can be installed. I would be most grateful if you could kindly correct this."

Sorry for that!