Skype ready for both telephone worlds

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Skype ready for both telephone worlds
By Ben Charny
CNET News.com  November 9, 2004, 9:00 PM PT
URL:  http://news.zdnet.com/2100-1035_22-5445922.html

An adapter made by Siemens to extend Internet access to cordless phones is
now loaded with Skype Net phone software, allowing the same phone to make
calls using the Internet or the traditional phone network.

  The coupling of Internet and traditional telephony in a single phone is
hard to find now, but it could become more common in years to come if, as
expected, more calls flow over the unregulated Internet rather than heavily
taxed traditional phone networks.

  For decades, the only way to sell local phone services was over the local
phone network, which is privately owned. But Skype is among a wave of new
companies offering voice over Internet Protocol (VoIP) technology, which
uses the Internet to make calls. By using VoIP technology, any broadband
connection, whether cable, satellite, cell phone, Wi-Fi or WiMax, can become
a home phone line.

While there are several jury-rigged methods out there that could achieve the
same results, the Siemens-Skype adapter stands out nonetheless because of
the pedigree of those involved in its creation. Siemens is among the largest
phone manufacturers in the world, and Skype is the most popular VoIP service
provider in the world, with more than 1 million users.

"Siemens is delivering a giant step forward for Internet telephony for the
residential market," Niklas Zennstrom, Skype's chief executive, said in a
statement.

  As with most other Internet phone service providers, Skype is also trying
to be compatible with as many Internet-enabled devices as possible. VoIP
started on PCs, which aren't always well-suited for phone calling. Personal
digital assistants and cell phones are a new favorite target of many VoIP
providers. Zennstrom said he believes Skype's effort regarding cordless
phones is a pioneering one.

  The adapter is not for the price-sensitive and is available only in Europe
for now. The Siemens Gigaset M34USB adapter is $129, while the six
compatible Siemens Gigaset phones cost between $65 and $260. To spur sales,
Siemens offers the adapter along with 120 minutes of SkypeOut, a Skype
service that lets people place calls to traditional phones from their own
high-speed Internet connections. Skype phone calls that are made among PCs
and which stay on the Internet are free.

In another major development, Skype on Tuesday also made public a method for
programmers writing applications to involve Skype software in some way. "We
are keen to watch the world's innovative developer community integrate the
Skype application," Zennstrom said in a statement.


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