A most valued reader (i.e. my brother — my mum is the other reader) points me to a colleague's blog busy referring to my previous entry. So to complete the nepotistic circle of cliquedom, I'll point you back to the other side of the echo chamber. It's one of the more succinct observations of what the Skype-eBay thing is about:

Google is now going to have to play an uphill battle. That battle was made conspicously apparent when Google released GoogleTalk. Why does Google continue to insist on invitations to grow it's Gmail accounts? Why is the only other registration mechanism is to use a mobile phone? I take it that Google understands the value of tying one's digital identity with something tangible in real world. That is you have a Gmail account because of your real world contacts or your ownership of a mobile phone.

Interestingly enough, it is eBay that has the enviable position of providing digital identities with true value. eBay's reputation system is without competition. A seller's ability to command a premium bid is affected by his reputation. Buyers without established reputations are sometimes barred from bidding. Paypal's verified attaches a real bank account to an identity. When one attaches a credit card to an identity, the address becomes verified and adds additional reputation for a buyer.

This is an elaboration of Stuart's allusion to the digital identity imperative of eBay and Skype:

Skype and eBay profiles: A huge winner in this area is possible. eBay will provide just one form of reputation data. Caller ID solutions are not far behind.

I gave a talk about 18 months ago one why the real asset of a telco was the data in its customer database, and not the network. Nice to see the real world catching up.

One shouldn't ignore the international aspects of this deal. It's easy to be parochially US or Euro centric, as Jonathan Boutelle notes:

This also means that in many emerging markets no one has heard of eBay, and eBay has no effective way to reach these markets other than expensive late-stage acquisitions.

Owning Skype will make eBay immediately relevant to millions of Pakistanis, South Africans, and Georgians. It gives them a way to reach customers and drive marketplace adoption in every country on earth.

The only way an eBay-Skype hookup can justify the price paid is if eBay infects Skype with transactional functionality. Skype has to burst out of a pure C2C voice play as there's not enough money in it to support big-league financial expectations. There are many break-out points, but B2C/C2B communications strikes me as the easiest to mine for gold.

Telepocalyptic prediction #1: We'll see a "merchant edition" of Skype within 12 months, and this will be indirectly a paid-for service to eBay sellers. Skype becomes the "PBX for micro businesses", and it's the seed from which eBay can grow a bigger assault on the moribund PSTN application, particularly the 800 number market. The economic driver will be increased conversion rates, larger transaction sizes, lower transaction defect rates (e.g. wrong address), and increased up-sell during closure. Only an advanced multi-modal client can achieve these things.

Telepocalyptic prediction #2: Within 18 months, Skype will be giving away ougoing PSTN calling to places with low call termination charges, in exchange for people adopting the Skype/eBay identity and proffering personal data. eBay needs to grow Skype as fast as possible to keep as much calling on-net as it can. There comes a point when your network effect means you can suddenly drop the price for a wide range of vital services to zero (think: search, browsers) in order to support an adjacent business.

As Yannick Laclau notes, the telcos will respond with their own scorched earth policy of offering PSTN service for free in conjunction with Internet access. As he later observes, this is fatal for the PSTN disintermediators:

The internet players are deflating voice to support their applications-layer businesses in commerce, content, and advertising; the telcos are deflating voice to support their growing broadband access business.

The losers in this will be folks who only make money selling voice. Top of mind in this category is Vonage, SunRocket, Packet8, VoiceGlo, GossipTel, and the other pure VoIP guys. Skype, I felt, was dangerously headed in this category until today's rescue by eBay.

Many of the telcos unloaded their directory businesses in a fit of panic to raise some cash during the downturn. This will now look foolishly short-sighted as local search becomes the hottest part of the telco value chain. Expect to see the most "e-enabled" local search providers being snapped up by Google, eBay and Amazon. (I'm not brave enough to make specific predictions! Apart from anything, I've not been tracking the space closely — go read Om and Andy for the detail.) This local directory business will be particularly critical to integrating "voice-centric" small businesses like plumbers, take-away restaurants, etc. rather than the web-centric ones that are the traditional eBay fodder.

The collective loss of the directory businesses will also weaken the ITU cartel's ability to dissuade the listing of non-PSTN contact identifiers.

Ultimately, though, I can't beat Stuart's pithy cluetrained comment:

A marketplace is nothing without conversations.

Whether the messages over Skypenet are worth the crate of gold that was offered, I'm skeptical, but the strategic fit is certainly there. We definitely live in interesting times.

via Telepocalypse.

Deal done. Retail VOIP in the offing? Views later.

eBay has agreed to acquire Luxembourg-based Skype Technologies SA, the global Internet communications company, for approximately $2.6 billion in up-front cash and eBay stock, plus potential performance-based consideration.

Skype generated approximately $7 million in revenues in 2004, and the company anticipates that it will generate an estimated $60 million in revenues in 2005 and more than $200 million in 2006. For Q4-05, eBay expects the acquisition to be dilutive to pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006. On a long-term basis, eBay expects Skype operating margins could be in the range of 20% to 25%.

The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2005.

eBay will host an investor conference call to discuss the announcement at 5 am Pacific Time today. A live webcast of the conference call can be accessed through the eBay's Investor Relations website at http://investor.ebay.com. An archive of the webcast will be accessible through the same link.

Full text of news release...

On Skype.com:

eBay to Acquire Skype

London, September 12, 2005 – eBay Inc. (Nasdaq: EBAY; www.ebay.com) has agreed to acquire Luxembourg-based Skype Technologies SA, the global Internet communications company, for approximately $2.6 billion in up-front cash and eBay stock, plus potential performance-based consideration. The acquisition will strengthen eBay’s global marketplace and payments platform, while opening several new lines of business and creating significant new monetization opportunities for the company. The deal also represents a major opportunity for Skype to advance its leadership in Internet voice communications and offer people worldwide new ways to communicate in a global online era. Skype, eBay and PayPal will create an unparalleled ecommerce and communications engine for buyers and sellers around the world.

“Communications is at the heart of ecommerce and community,” said Meg Whitman, President and Chief Executive Officer of eBay. “By combining the two leading ecommerce franchises, eBay and PayPal, with the leader in Internet voice communications, we will create an extraordinarily powerful environment for business on the Net.”

Founded in 2002 by Niklas Zennström and Janus Friis, Skype offers high-quality voice communications to anyone with an Internet connection anywhere in the world. The Skype software is easy to download and install, and enables free calls between Skype users online. Skype’s premium services provide low-cost connectivity to traditional fixed and mobile telephones. Skype’s software also offers a robust set of features, including voicemail, instant messaging, call forwarding and conference calling. Upcoming product innovations include Skype video, expressive content such as avatars, and customized toolbars for Outlook and Internet Explorer.

One of the fastest growing companies on the Internet, Skype already has 54 million members in 225 countries and territories. Skype is currently adding approximately 150,000 users a day and has created a thriving ecosystem of products, services, developers, and affiliates. Skype is considered the market leader in virtually all countries in which it does business. In North America alone, Skype has more users and serves more voice minutes than any other Internet voice communications provider.

“Our vision for Skype has always been to build the world’s largest communications business and revolutionize the ease with which people can communicate through the Internet,” said Niklas Zennström, Skype CEO and co-founder. “We can’t think of any better platform to fulfill this vision to become the voice of the Internet than with eBay and PayPal.”

“We’re great admirers of how eBay and PayPal have simplified global ecommerce and payments,” said Janus Friis, Skype co-founder and senior vice president, strategy. “Together we feel we can really change the way that people communicate, shop and do business online.”

Zennström and Friis will remain in their current positions. Zennström will report to eBay CEO Whitman and join eBay’s senior executive team.

A Powerful Ecommerce and Communications Engine

Online shopping depends on a number of factors to function well. Communications, like payments and shipping, is a critical part of this process. Skype will streamline and improve communications between buyers and sellers as it is integrated into the eBay marketplace. Buyers will gain an easy way to talk to sellers quickly and get the information they need to buy, and sellers can more easily build relationships with customers and close sales. As a result, Skype can increase the velocity of trade on eBay, especially in categories that require more involved communications such as used cars, business and industrial equipment, and high-end collectibles.

The acquisition also enables eBay and Skype to pursue entirely new lines of business. For example, in addition to eBay’s current transaction-based fees, ecommerce communications could be monetized on a pay-per-call basis through Skype. Pay-per-call communications opens up new categories of ecommerce, especially for those sectors that depend on a lead-generation model such as personal and business services, travel, new cars, and real estate. eBay’s other shopping websites — Shopping.com, Rent.com, Marktplaats.nl and Kijiji – can also benefit from the integration of Skype.

PayPal and Skype also make a powerful combination. For example, a PayPal wallet associated with each Skype account could make it much easier for users to pay for Skype fee-based services, adding to the number of PayPal accounts and increasing payment volume.

In addition, Skype can help expand the eBay and PayPal global footprint by providing buyers and sellers in emerging ecommerce markets, such as China, India, and Russia, with a more personal way to communicate online. And consumers in markets where eBay currently has a limited presence, such as Japan and Scandinavia, can learn about eBay and PayPal through Skype. Skype can also help streamline cross-border trading and communications.

With its rapidly expanding network of users, the Skype business complements the eBay and PayPal platforms. Each business is self-reinforcing, organically bringing greater returns with each new user or transaction. The three services can also reinforce and accelerate the growth of one another, thereby increasing the value of the combined businesses. Working together, they can create an unparalleled engine for ecommerce and communications around the world.

Transaction and Financial Information

eBay will acquire all of the outstanding shares of privately-held Skype for a total up-front consideration of approximately €2.1 billion, or approximately $2.6 billion, which is comprised of $1.3 billion in cash and the value of 32.4 million shares of eBay stock, which are subject to certain restrictions on resale.

The maximum amount potentially payable under the performance-based earn-out is approximately €1.2 billion, or approximately $1.5 billion, and would be payable in cash or eBay stock, at eBay’s discretion, with an expected payment date in 2008 or 2009. Skype shareholders were offered the choice between several consideration options for their shares. Shareholders representing approximately 40% of the Skype shares chose to receive a single payment in cash and eBay stock at the close of the transaction. Shareholders representing the remaining 60% of the Skype shares chose to receive a reduced up-front payment in cash and eBay stock at the close plus potential future earn-out payments which are based on performance-based goals for active users, gross profit and revenue.

The above-mentioned dollar and eBay share amounts are approximate, based on the Euro-Dollar exchange rate and eBay’s stock price as of September 9, 2005. The final value of the stock component of the consideration may vary significantly from this estimate based on the value of eBay stock at closing.

Skype generated approximately $7 million in revenues in 2004, and the company anticipates that it will generate an estimated $60 million in revenues in 2005 and more than $200 million in 2006. For Q4-05, eBay expects the acquisition to be dilutive to pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006. On a long-term basis, eBay expects Skype operating margins could be in the range of 20% to 25%.

The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2005.
About eBay Inc.

Founded in 1995, eBay pioneers communities built on commerce, sustained by trust, and inspired by opportunity. eBay enables ecommerce on a local, national and international basis with an array of websites – including the eBay Marketplace, PayPal, Kijiji, Rent.com and Shopping.com – that bring together millions of buyers and sellers every day.

About Skype Technologies SA

Skype, the Global Internet Communications Company™, allows people everywhere to make free, unlimited, superior quality voice calls via its award-winning innovative peer-to-peer software for Windows, Linux, Mac OS X, and Pocket PC platforms. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Since its launch in August 2003, Skype has been downloaded more than 163 million times in 225 countries and territories. Fifty-four million people are registered to use Skype’s free services, with over 3 million simultaneous users on the network at any one time. Skype Technologies SA is headquartered in Luxembourg and is growing its offices in London and Estonia.

Forward-Looking Statements

This announcement contains forward-looking statements regarding Skype and the expected impact of the acquisition of Skype on eBay’s financial results. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the timing of the closing of the transaction, the possibility that the transaction may not close, the reaction of the users of Skype’s services, the future growth of Skype’s user base and public acceptance of Internet voice communication services, rapid technological changes in the Internet voice communications sector, the reaction of competitors to the transaction, global developments in the regulation of Internet voice communication services including those provided by Skype, the possibility that integration of Skype’s offerings following the transaction may be more difficult than expected, and the possibility that entry by Skype and eBay into potential new lines of business will not be successful. More information about potential factors which could affect eBay’s business and financial results is included in eBay’s Annual Report on Form 10-K for the year ended December 31, 2004, the company’s Quarterly Reports on Form 10-Q, and current reports on Form 8-K. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.

The eBay announcement:

***A New Way to Communicate***

I’m excited to let you know that eBay plans to acquire Skype, the leader in online voice communications.

Skype has set a new standard in online voice communications with
outstanding sound quality and unmatched ease of use. And like eBay,
Skype has a fast-growing community -- some 54 million Skype users
around the world already use their PCs to talk with one another.

And best of all, conversations between Skype users via PC are free. You
can get up and running on Skype in just a few minutes. Just go to http://www.skype.com/go/x.home to learn more and download the free Skype software application. Try it – it’s fun!

Over time, we intend to make voice communications a part of the eBay
marketplace – a huge step forward in making transactions faster and
easier, as well as bringing even more interactivity and humanity to the
eBay Community.

You can include your Skype ID in your About Me page. For now, however,
Skype links may not appear in View Item pages. We’ll be working with
you, our Community, over the next few weeks to thoughtfully work out
the details of how eBay and Skype will interact, including any policy
changes that may be required.

We expect this acquisition to be finalized soon. In the meantime, you can learn more about our Skype plans in the news release we issued just a few minutes ago.

Working together, eBay, PayPal and Skype will redefine online trade and
community. I hope you’ll join us in this exciting new chapter in eBay’s
history.

Sincerely,

Meg

"Is Skype in China risking compromising their encryption and anonymity model?" so asks my Danish contact Torben Nyhuus after reading this article on Yahoo turning state's evidence:

Information supplied by Yahoo! helped journalist Shi Tao get 10 years in prison

It is an interesting question. The Skype Partner TOM does have a different version of Skype. H'mmmm...

João Brogueira writes:

On 1 June 2004, Jean Mercier posted an article on SkypeJournal making an analysis of how many users are online at a certain our within a 24 hours period. This raises the question of how to register the values without being waked up during all night.

The same Jean Mercier as per request of Bill Campbell, of SkypeJournal, shows how to make a video to register the Skype window and the number of users online.

I was surfing the Web today and I found this very interesting post claiming to have miniSkype, a small program that can not only register these values but also export them directly to a database for later analysis.

In short:

1. Jirong Zhou posted a test program on his blog, likely written by others.
2. It logs in to the Skype network, without Skype.
3. It gets data from the Skype network, like the number of people online.

Let me describe the screenshot for you...

It is a Windows XP desktop and three windows are open.

Two stacked on the left are titled "miniSkype v0.0.0.01". They each have a Log In/Out dialog panel on the left, showing "shantou001" logged in with a five character password and a "Log Out" button. To the right of the dialog panel is a text box showing a log of miniSkype's activity.

The first window's log shows:

Login
listen on random port
connecting SkypeNet ...
SkypeNet connected

The status bar shows a "1", "3", "login success", and "305271 Online".

The second window's log shows:

Login
listen on random port
connecting SkypeNet ...
SkypeNet connected
Logout
SkypeNet not connected
Login
listen on random port
connecting SkypeNet ...

and then scrolls out of sight.

The second status bar is the same as the first except that the number of people online is 3047812.

The third window is an application, what appears to be a utility from Gunagzhou's http://www.sky.net.cn/, makers of personal firewall software. It shows open applications and their network connections. One of the instances of MiniSkype.exe (running on drive E:) is shown with both a TCP connection (open on port 1389?) and a UDP connection.

Accessing the Skype Cloud Without Skype?

So does this mean...

• Skype's access to the cloud can be reverse engineered? If so, we can write applications that can write and read to the cloud from servers or clients. So if Skype doesn't write a version for your platform (let's say the PalmOS, for example) you might write your own.
• Cloud data is posted in the clear? While conversations are encrypted, it isn't clear that profile data and presence status is. And, I'm assuming that MiniSkype didn't encrypt the login process beyond common https.
• The MiniSkype client successfully logged in through Skype's own admin servers? If so, can Skype be selective about which clients have access? Should Skype publish a Terms Of Service about touching the cloud? In other words, how should Skype sanction access to the cloud?
• Having accessed the cloud, what other data from the cloud is available? Everything described in the Skype APIs? More?
• Can MiniSkype ask questions about other people, the way the Skype client can see buddy list presence and profile information?
• Is this intensely cool? Widely important? Or dangerous?

I can recommend this short but thought-provoking article over at The Mobile Technology weblog.

In essence, it critiques mobile J2ME and BREW because they're denied access to the communications-centric functions of the mobile handset.

I've long thought the same thing. What I'd like to see is these environments deploy "opaque objects." This means that they would be able to query and manipulate things like your address book, but without actually seeing the data. Only the phone OS would see the data itself; the program would just hold an object handle. Functions like iteration through the address book, comparison, and set operations, would all be offerred. A number of user interface components would be offered native to the device to perform standard operations like the selection of one or more contacts, or the addition of new entries.

This would help to reduce the danger of privacy and security lapses. A progam that can't see your actual address book data can do less harm to your privacy.

I also believe that the provisioning of access permissions of applications could be substantially improved. When I download a J2ME application, and it wants to access the network, I'm forced to go through a handset-mediated screen asking every session if I want to accept once, repeatedly (but just for the session - not forever), or not at all. This is a gross inconvenience. We don't pop up a "do you really want to make this phone call" confirmation when you press the green button.

What I'd rather see is the permissions get set at install or purchase time. The install-time part is fairly self-explanatory - you set the access parameters to resources like profile, address book and network. The purchase-time one is more subtle, and really refers to the wired Web. The download app would come with a digitally signed set of permissions from the retail environment, where you have provisioned your access preferences. When you buy a certain networked game, you just tick a box saying "I understand that this game will be given access to my address book, and may access the network incurring packet charges." The appropriate permissions are then tagged on, and you are never asked again on the handset.

Some of these could be parameter-driven. For example, my email application may be allowed to transfer up to 1Mb a day without asking, but above that I should be asked to give my consent. Waiting until the app is on the phone is too late to start provisioning this kind of thing.

This would possibly give network operators' in-house mobile portals a large advantage, as third party sites may not have access to this signing facility and their user experience will suffer. Users downloading from third party sites would have to deal with more intrusive access screens on the handset.

Naturally, a balance is to be struck between privacy and convenience. You can ask too many authorisation questions and put people off. But today's model of simply not allowing some highly valuable functions to be accessed by handset applications is decidedly not convenient, either. There are many low-level functions in the phone which could contribute to an enhanced application experience, if only the operators and handset makers weren't so scared of exposing then.

This model also extends to Windows applications. We won't see it, because Microsoft has gotten lost in the wilderness, but here's what I'd like Windows to do when I install a new app. I should be presented with a human-digestible list of the key permissions it is requesting: "Access the web site 'foo.com'", "Modify files in the 'My Documents' folder", etc. (By default, it should only have access to its own preferences directory. And I should be able to increase or decrease permissions - not just "take it or leave it".)

Just because an app gets a buffer overflow or has a control logic bug shouldn't mean it gets to trash my whole hard drive and access the whole Net. All those worms that download via browser bugs would have a hard time, because being able to execute arbitraty code wouldn't automatically enable access to all OS functions. If you go to hax0rs.com by accident, and get a pup-up from the Windows OS asking if you want to authorise access to your address book, you should be deeply suspicious.

(As an aside, the security model of Windows is very broken, and will stay that way, because actions are done on behalf of users, and not applications. Just because I downloaded and installed an application doesn't mean it should be trusted as if it were me. The user model doesn't match the trust model. Unix/Linux is barely any better, but at least you can fake it by creating a different user for each app and constraining its actions accordingly. Ideally you'd have a file system where any haywire application could be terminated and the changes it had made simply undone. Windows also doesn't make it easy to distinguish pop-ups that have come from the OS itself from those generated by the application. Another security headache.)

I hope you've managed to follow this rather abstract stuff, but really it's very simple. If you're going to give applications access to data and facilities that could harm the user, you need to put in appropriate controls, and make the provisioning of them simple. It may be just my ignorance of current developments in 3GPP standards etc., but it seems we are lacking on all three fronts.

via Telepocolypse

by Jan Geirnaert, an IT/Internet Business Consultant in Malaysia.

I have worked here in Kuala Lumpur, Malaysia, as the IT manager and network administrator for a small non-IT business. One of the many things I did is cutting the cost of the phone bill by implementing Skype as a VoIP solution. These thoughts are not purely IT/technical. My wage was paid by the cost-savings on the telecom-bill.

Here are some issues to be taken into account before implementing Skype. What you read below is how I did it, these are my personal experiences. The standard setup-recommendations can be found on the Skype web site.

Make your case gently and with numbers

Explain properly to all involved management levels and teams (especially Finance and higher management-levels) what the solutions consist off. Don’t go too much into IT-technical issues. Focus on the advantages and the low cost (only your time and skill are important here). Take into account that VoIP (Skype included) is something new and a low-level entry is better than no entry at all. If you make things sound complicated, it just won’t work.

Do not be aversive or aggressive towards existing technologies that have been put in place. Introducing a new technology in real life situations has to be done by focusing on the advantages of the technology for the existing users. Today and now. If you start comparing with existing solutions based on older but valid (operationally speaking) technology you will be seen as an evangelist. In the end the customer will choose for things that work. Being right or wrong is not an issue here. Making something work and pinpointing the cost is.

The advantage of having chosen Skype is that the implementation took only some upgrading of the security layers in the existing Windows XP network and adding more bandwidth to the existing ADSL-Internet connection. [Ed: As opposed to investing in an entirely new telephone system, with digital PBX, cabling, and phones.]

It is advisable to check the security settings and activate bandwidth monitoring, software-firewall on the systems that are going to use the Skype solution.

Creating a basic user-policy is useful too.

An easy way to get the project going could be to ask for the existing phone bill and spread it out over 4 quarters (Q1/Q2/Q3/Q4). Put this in a spreadsheet. Make a quick analysis of the current recurrent phone bill on fixed phones, mobile phones (actually anything that goes out via the traditional PABX system). The reasoning to apply here: by conducting phone traffic via the Internet, the phone bill of the existing PSTN-traffic will go down. Keep track of this. After one year you will be able to see what the effect of a Skype implementation is on the telecom bill.

Configuration and Deployment

At the time of implementation there were no USB-link-boxes or super de luxe devices available. So I choose simple headsets (0.5 euro each). Installation was very simple. Plug in the headset, install Skype and off you go. Once you save some money (or you could do it from the start), you can put devices in place that link your Skype via USB to your existing phone. Nobody likes to sit with a headset on... But this topic is the topic of using the external hardware devices (so many options here). Make sure you test the hardware solution first.

Once Skype is activated you will encounter the problem of the naming convention. People will always try to do what they want if options are given to choose. So preventing a wild spread of all kind of names (resulting in not knowing who is who) I applied this rule on the naming: (company-abbreviation)-(country-iso-code)-surname. If you have those annoying users who still want their own nickname instead of company related names, well the surname could be replaced by the nickname. In order to avoid this you can simply create all user names before the users start making them. Creating the user names for your population will also avoid wide-spread of the passwords. Do enter an email-address in the Skype program during installation and fill in the full name.

What is missing in the Skype-ID-fields now are 3 fields : company-name, department, function/position of the user. Now thinking further on this matter of “who is who,” integration with LDAP servers would be nice. These would be like LDAP integration with Outlook. But not having access to all that technology I used a simple trick: installing Plaxo 2.0. (www.plaxo.com). In the IM field you can then mention the Skype ID. Works and it keeps the costs down. This is ideal in an environment that has no central email-LDAP-address book. Remember I am talking about a solution for companies that have multiple locations, external partners who are connected to each other only via some computers, and ADSL Internet connections.

Actually spreading the name list is quite simple. Set up one central account, support@ (for example), and add the new users to the office list. Then send around an email (anybody can setup account, externals included, which is kind of confusing) stating that this or that has been added/deleted. Ask people to add / authorise the user to their list.

After having done the implementation, try to make the users add their picture or company logo. This adds to the security features of Skype too, since Skype seems to allow you to login twice or more with the same account. I assume that the picture will not appear if somebody else but yourself logs in (since the picture resides on your hard disk). Your voice and your face are unique, you better get this done quickly.

I never engage in a talk with external sources without having heard their voice. P2P solutions have the advantage you can quickly connect to "everybody," and it can be everybody. Avoid leaking of valuable information. With some luck you will be able to use Skype for the voice traffic in no time. On top of that, it has an interesting instant messenging feature and let's you send around files in no time.

Once the users are happy with the existing Skype-functionality, get back to Finance and Management and show that the Skype system can be used to make calls to mobile and fixed phones. You can then start setting up a general company billing account (SkypeOut) for the fixed computers. For some users you will have to setup individual accounts. Be careful not to compromise the credit card info of multiple users. It might be more useful to use a company credit card that has some web protection. You can actually "top up" user accounts by using one credit card, which has the advantage of centralised financial control.

I guess that is about it (for now). After implementation you should provide the user with a basic "how to setup and use" manual. Let them get used to the system and take it from there. Keep track of the support requests. You will learn a lot from those questions.

Open issues...

Some problems and open questions remain.

• How to get centralised control on the number of calls generated on a "company account"?
• Can the concept of a mail server be applied on Skype?
• How to keep track of the files and information sent via Skype?
• How to get rid of Skype spammers and SPIT?

If you want to give me your ideas and thoughts on this, just callto:tropicaljantie.

Reprinted by permission from Jan in Malaysia.

Living the Skype Life

Does anyone know Roxy's Skype name?

engadget: Use DittyBot and Skype to access your iTunes collection from any cellphone (Mac). It works, but Om says you can buy an iPod for the same price as the added mobile minutes. DittyBot (cute name, cuter character) is another example of the willingness of customers to make their own features.

Russell Shaw explains 15 common Skype error messages.

For your inner Quant

The latest Skype stats:

• Total Skype Downloads: 122,320,159
• Users Online Now: 3,014,635
• Total Minutes Served: 9,947,864,820 (should roll over)

For contrast: 64 million Firefox users

Researcher Sandvine says Skype users rule North America.

• Skype users account for 35.8 percent of individual callers on North American networks.
• Skype calls account for 46.2 percent of minutes used.

also...

• Cape shows Skype now synonymous with voip, at least in the blogosphere. Poor Vonage.
• Skype is filling the void left by broken email.
• Xandros is adding German and French desktop Linux versions (with Skype inside). Skype's also shipping with the English and Spanish versions. When Skype is bundled with the operating system...

vSkype multiuser video chat free Beta release shipping now. See Bill Campbell's product review and exclusive interviews.

IPdrum promises a bridge between net and mobile phones later this summer. "Patent-pending technology to connect traditional mobile systems with Skype." Wholesale service or retail? via Engadget.

Skype voicemail came out of beta. New feature: Voicemail customers can leave voicemail for any Skypers.

Security? Om Malik re-voices concern about Skype crossing firewalls.

Skypes To The Editor: Online publication MSmobiles.com uses Skype for reader feedback. Leave a voicemail with your comments.

What's Your Skype Strategy? Blast from three months ago.

Coming this week:

• Supernova 2005 Conference. San Francisco. Stuart Henshall and I will see you there.
• Philadelphia Metro Telecommunications Enthusiasts Group Meetup. First meeting.
• CPSN'05 - The 2005 International Conference on Computers for People with Special Needs. Las Vegas.
• Internet Law 2005. The Berkman Center for Internet & Society at Harvard Law School. Cambridge, Massachusetts.
• Gnomedex 5.0. Seattle.

Their statement: Restrictions on running Skype P2P software at CERN. Because Skype clients help each other find others on the net (acting as supernodes), basically behaving too much like KaZaA. via physics professor Jacques Distler's thoughtful blog post.

The stated reason seems a little shaky to me. Aside from the unsavoury nature of its cousins, the P2P filesharing programs, I don’t see why skype supernodes would pose an undue burden on the CERN network. It seems to be more of an “It’s the principle of the thing!” issue, than an actual concern about bandwidth or network performance.

Does your IT organization have a Skype policy? What makes an informed, useful, and effective policy? What concerns should it address?

First off, let's look at writing. The American Management Association wants writing interns to write a book on making deals online. Has Skype helped you make a deal? If not, the you may want to swing by the World Association of Newspapers conference in Seoul. 29 May - 1 June. If blogging is journalism, what is skyping? The next day another conference, TrendTag (Trend Day) in Hamburg looks like a great time for quants and futurists. 2 June. For more events I find interesting, see my list on evdb.com, including The 8th Asia Pacific IP Telephony, Singapore, the Wireless Community Conference, Monterey, California, INBOX, San Jose, California (where I want to learn more about spam over IP telephony), and SUPERCOMM Chicago.

We all want more from Skype. A million Apple fiends are all goosepimply with excitement that Spymac is adding Skype, maybe to become SkypeMac? This popular Macintosh portal adds SkypeMe to its user profiles, forums, to push realtime conversation on news and user posts. I wonder what Skype video will do to portals and online communities? Or to libraries: 26 steps for effective web presence in libraries includes Skype.

Martin Geddes is craving a long list of Skype client features. He ain't alone. Jan's Tech Blog says Skype's SkypeOut Dialing Wizard helps you sort out international numbers before you spend those SkypeOut minutes. Build it into the next release, please.

I'm fascinated by Consumer Casting Conversations (fr) who are using Skypecasting for market research. via Franck Dumesnil. Reminds me of Sparkcasts' beercasting. Gregory Narain, are you listening?

Skype's shaking people up.
  Some band together: the Internet Telephony Services Providers’ Association is trying to make the world safe for Skype and Skypers and others of our ilk.
  Others resort to force, as Hello Estonia sees it: Next call for Net phoning : Regulation. The idea of using Skype for emergency calls is beyond belief, per Richard Cobbett. "What wonderful, idyllic, crime-free world does he see in the morning, where technology is reliable and the internet doesn’t die on a daily basis?" Read Richard's "He’s got a gnu!" for a serious chuckle. All the fear mongering could lead to an Online Dating Patriot Act sponsored by True.

If you take comfort in your toolkit, Make your own Skype phone. Not for the faint of screwdriver.

Mixed messages? Two clips from the same day from Skype's website. Are recent E911 rulings scaring Skype? I find real mixed messages here for consumers too. As a Skyper, Skype has replaced the telephone for me. So it is a "replacement." Yet it isn't apparently a "replacement" service.

If VoIP providers want to win / and work with users to get the "right" regulation in play then better language is required. Users don't care about quibbles. Portray it as a "nomadic service", define it as a "socialnet", or augmented communications. It is both very much more and very much less. It is certainly different. Users know this.

What feedback is Skype getting from country regulators? How are the current experiments in the US, UK, Denmark, Poland, Finland, Sweden, France, and Hong Kong going? (Note Norway is no longer available.)How many numbers have now been issued?

While I'm happy with the service having spent another 55 Euro today on Skype for an English number and more minutes others may want to read the terms and conditions There are not a lot of guarantees there. We understand the emergency dialing, and then most phone companies would refuse to guarantee your number too.

Andrew Ferguson is a disturbed young man. Brilliant, but disturbed. Funny and innovative. But disturbed.

You know the email spam you get that says, please call this bloke in Africa to send him money to (fill in the appeal here) in the wake of (insert natural or national disaster)? Well Andrew decided to call. Using SkypeOut. Interminably. At odd hours. Tying up the con-man's phone line.

Aside from the dark pleasure of petty revenge, what's going on here?

Skype's design favors offensive tactics

First, there's an imbalance in our cost of calling. As a Westerner, he can afford 10 Euros for 10 hours of calls. If he buys more, the rate falls even further. As a percent of disposable income, this is small potatoes to Andrew.

Second, there's an asymmetry in the opportunity cost of tying up the spammer's phone line. Others aren't getting through to the spammer, so every hour the line is tied up is a sucker missed and money foregone.

Third, Skype calls can be automated. So you can program a thorough barrage of short calls scattered throughout the day. And night. This optimizes your use of your SkypeOut minutes since there is not per-call charge, just a charge for the time. It also exploits the spammer's need to answer each time the phone rings or never talk to another sucker. So every call both increases the effort needed to capture a sucker, since for each sucker there are dozens or hundreds or thousands of fake calls. With little effort (one programmer coded this in 20 minutes) you can make it pointless for a spammer to keep a given number.

Take this a step further: decentralize. Create a spam filter that looks for, say, new Nigerian phone numbers in your email spam bin. Automatically grab them, and post to a listserve, sharing targets. Then have your Skype run the attacks against multiple targets, randomly selected by you and others. This decentralizes the work, aggregates your SkypeOut minutes, buying power, and exposure (if someone tries to find out who you are) among many Skypers. Putting the Power of Many to use.

This is a hoot.

Until the number being attacked is a fire department, or a hospital, or your home. Or air traffic control, or a credit card processing center. Or your mobile phone, where you have to pay high rates for every call, even one lasting just a few seconds.

What can you do about a telephonic denial of service attack?

Other than changing your number?

Maybe we can adapt defenses against flooding attacks in other media, like email and DNS. Maybe not; much of the information used on the Internet isn't available with POTS.

Can you detect an attack building up?

How about a distributed DOS attack?

Who would you call for help?

After the fact, which laws would apply? When would Skype cooperate with law enforcement or civil litigators to provide SkypeOut logs connecting calls to SkypeOut user accounts? Would Skype provide billing data?

And could we blame it on Andrew? Or his Doctor from Nigeria?

Skype Journal confirmed that Skype users in the United Arab Emirates are blocked from the Skype.com web site. This prevents users of the Skype internet telephone system from buying minutes to call at highly discounted rates, of special importance to the many expatriates who work in Dubai. We don't know where the actual blocking is taking place (presumably at Etisalat's Emirates Internet and Multimedia, the only ISP in the UAE), at whose direction, or for what purpose.

Motives may be economic. About 2.5 million people live in the UAE, 1.6 million are non-nationals. There are more phones than people: 1.1 million land lines (operated by Etisalat) and 2.9 million mobile. Etisalat has a monopoly on telephony.

The motive may be one of political control. Skype automatically encrypts conversations, making it costly and difficult to tap conversations or determine calling patterns.