New ways to get more out of Skype. What and how do you want to see Skype develop?

This is the third of three posts discussing Skype's PR management with the aim of improving the PR relationships associated with the launch of new Skype software and associated services. In the first post I outlined the problem; in the second post I proposed a proven solution; in this third post I want to review the recent Skype beta releases (3.0 for WIndows, 2.5 for Mac) and Skype's 3 Group partnering activity with respect to the proposed solution.

If the work of the city is the remaking or translating of man into a more suitable form than his nomadic ancestors achieved, then might not our current translation of our entire lives into the spiritual form of information seem to make of the entire globe, and of the human family, a single consciousness? .... Marshall McLuhan, Understanding Media, The Extensions of Man, 1964

One primary objective of public relations is to leverage media reporters, including bloggers, to provide an outside perspective on the subject matter of press releases, product announcements and corporate presentations at, say, industry events and to propagate corporate awareness through corporate interviews.  In turn, media reporters want to feel both sufficiently informed and experienced to have the background for providing objective, accurate and complete coverage while making assessments of the impact of a story.

Personally I prefer to report based on exposure to a product, not just a press release. I have also found interviews with senior executives (usually the CEO, one of whose roles is to be the Chief Company Salesperson) an opportunity to flesh out details that can make a more viable and credible story. I have also had a couple of executives point out that I have brought to their attention issues that they subsequently realized should be addressed in their public announcement.

Over the past two weeks we have seen four major press releases involving Skype: Skype 3.0 for Windows Beta Launch, Skype for  Windows - Business version, Skype for Mac 2.5 beta launch and Skype's participation in 3Groups' new X-Series program. The result has left behind a very mixed image of what Skype is offering and the direction it is taking. The first post in this series exposes some of this confusion; the second post proposes a cost effective solution that can help narrow, or even avoid, the confusion..

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This is the second of three posts discussing Skype's PR management with the aim of improving the PR relationships associated with the launch of new Skype software and associated services. In the first post I outlined the problem; in this second post I am proposing a proven solution; in the third post I want to review the Skype 3.0 beta release activity with respect to the proposed solution.

Drawing from my management experience over the past couple of decades involving business public relations activities, from both a marketing and investor communications perspective, I think Skype can enhance both its market awareness and usage leveraging the enthusiasm, interests and various perspectives bloggers have the power to introduce into the market.  I have had employers who tried to ignore the need for PR (and dealt with the fallout) and others who were viewed as overly aggressive in their PR activities. But the one constant, both prior to and following the Internet's evolution as a business communications medium is that PR is about building relationships -- not only with your customers and users but also with those who have the potential to propagate the message, whether through traditional media or web-based media, such as blogging.

First three general comments:

• In the pre-Internet days, for every major software product launch at one of my previous employers, we sent out a team of product managers, executives and PR personnel to conduct individual press interviews. This took significant resources out of the office for up to two weeks. And then we had the overhead of delivering and supporting pre-release software prior to the launch such that reporters could write up their impressions based on actual experience. With VoIP and Internet-based real time communications, software distribution and feedback tools all such costs and overhead effectively go away.

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This is the first of three posts discussing Skype's PR management with the aim of improving the PR relationships associated with the launch of new Skype software and associated services. In this post I want to outline the problem; in the second to propose a proven solution:in the third post I want to review the Skype 3.0 beta release activity with respect to the proposed solution. .

If you follow the VoIP blogosphere at all, you may notice that certain products and services, when introduced, get a lot of coverage such that readers can quickly assess if there could be followup interest.  SightSpeed and TalkPlus, whose beta program launches today, are two examples; this did not happen by accident. In both cases, while bloggers are open to make their own observations there is an underlying consistency of message as to what the service provides and what are the key features. SightSpeed focuses on high quality realtime and asynchronous video communications while TalkPlus focuses on delivering a means to manage your phone number infrastructure in a manner that protects individual privacy while providing helpful business and social networking tools.

On the other hand I have done a review of various blogger posts on the Skype 3.0 Beta launch; here is the original press release and a sampling of the initial "first impressions" posts (Ed: with my bolds):

Gizomodo:

The big new feature is browser extensions for IE and Firefox that let you embed SkypeOut links into web pages. ... The re-designed toolbar, contacts and call tabs look much easier to use. And Skype also added moderated public chat features, which makes me all wistful for IRC.

Skype Numerology

Nov. 9: Skype 3.0 beta released. And indeed, the differences between the previous version 2.6.0.105 and the 3.0.0.106 are (from my point of view) quite small, see the change log.

Nov. 11: Mea Culpa: My mistake (see my post below), Skype 3.0 has indeed quite some new features, as explained on the Skype website and in Skype Journal.

Tech Crunch UK

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Tim Berners-Lee's Web Science Initiative is important. Tim's starting academic research to create a scientific discipline that studies human behavior and the systems that support it. Like people talking to each other over the Internet. There are already two academic conferences

Let's start a contract research team. Call me if you're interested. I have a domain and am putting together a discussion forum. We should put together a list of proposals and potential sponsors and see if we can get this off the ground.

Topics that come to mind in the last five minutes:

• How do effective people switch from talk to action?
• What are the cues for mode switching (e.g. switching from IM to voice) or blending within a conversation? Within a relationship? When and how do they work?
• How do people think about the privacy of their calls? How does this vary from culture to culture? What are the effects of those perceptions on choice of communication channels?
• Where are the tipping points for social network migration, where you and your buddies flee one network for another? Are there leading indicators? What strategies might preserve a network's critical mass?
• Can occasional random calls among workplace strangers (in a large organization) improve knowledge work and organizational effectiveness? Might this compensate for not bumping into colleagues at the corridor?
• How does IM change the relationship between supervisors and knowledge workers?
• Which behaviors improve social capital? What metrics and other cues best drive those behaviors?
• How is the psychology of persuasion altered by the social proximity of strangers?
• How long do people talk about different topics? Do those talks have common templates, narrative structures?

If you're a behavioral scientist or market researcher, please ping me. Do you sense the time is right for this area?

p.s. For fun, try this University of South Florida Skype User Satisfaction Survey.

GigaOM today reported on Vonage's latest results: new subscribers down, churn is up, ARPU is down, subscriber acquisition costs up.  All indicators going in the wrong direction; in fact, one could say that Vonage continues to dig its own hole (as predicted here and here).

Maybe Vonage's board could use Vonage's latest service announced yesterday: calling 811 for assistance in digging holes. Hat tip to Garrett Smith at VoIP Supply for digging up this story.

Questions this raises:

• Should not the FCC be developing e811 regulations? From the press release:
  • Note that 811 access depends on its availability within your area. States set their own timelines and procedures on when to call. In some states it is the law to call before you dig. Subscribers should check with their state and local governments for further information.
• Is there a Vonage VP who became totally confused when he heard about Digg.com as a "user driven social content website"?

But we'll all know when Skype is getting desperate - when they start stating: "Skype is not a telephony replacement service and cannot be used to dial 811 or other hole digging assistance phone numbers".

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Yesterday came out of stealth mode the TalkPlus project that has been over two years in development; underlining this project's viability was a coincident announcement of a $5.5 million financing by Menlo Ventures. Om broke the story early yesterday morning; Ken Camp, Stowe Boyd, Voxilla and Alec Saunders, amongst others, have posted their initial impressions. I spent an hour yesterday afternoon discussing TalkPlus with Jeff Black, Founder and CEO. Jack provided some of the operational details that were not covered in the press release. First an overview from the press release:

TalkPlus today announced plans to revolutionize the way people use mobile phones by offering new and innovative Voice 2.0 calling services that work with existing mobile phones globally. Under development for more than two years, TalkPlus' patent-pending technology will provide customers a wide array of new and advanced calling services previously unavailable from mobile phone carriers.

First Offering: A Second Number That Works on Your Mobile Phone

With an additional phone number from TalkPlus, mobile users can now take advantage of having two numbers on their mobile phone. This additional mobile number is fully functional and unique; it works just like a mobile number issued by a carrier. By having a separate number to both place and receive calls on the same phone, subscribers get greater convenience and flexibility, as well as the benefit of an additional layer of privacy. With a second number, TalkPlus subscribers will be able to easily manage personal and work lives, while carrying only one mobile phone.

Subscribers will also benefit from an online management center, where they can easily control the TalkPlus Number's advanced call screening, voicemail, and contact management features.

Incorporated into the "Second Number" feature set will be an independent voice mailbox, a rules based engine for call management, bidirectional calling (in and out) such that a user can, say, separate her personal and business life, while using one phone handset with one carrier account. If you want to apply these management features to your original (well publicized) mobile number, you can port that number to the TalkPlus service and have a new (probably unpublicized) number applied to your basic carrier service.

But the calling support services go beyond capturing voice mail. Here are a couple of  examples:

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Initiated when Andy invited me to participate in the Nokia blogger program back in June, I have now had the opportunity to work with several mobile platforms and, over time, made several attempts to work with programs that access Skype from the mobile phone. I've also been following the Skype perspective on mobile here, here and here where expectations are set for processor power (minimum 400 MHz on Skype for Mobile), wireless access requirements (WiFi and/or 3G) and other operational limitations on a mobile platform.

As a guideline for user simplicity, I look for an experience where I can (i) easily "ping" a contact and enter text for a chat session and (ii) simply access a (Skype) Contact or dial a number to make a voice call - an experience that has a minimal installation and learning curve for the user public; an experience that will readily gain broad market acceptance. For the record the platforms I have worked with include:

Device	IM Client	OS/Keyboard	Wireless
Dell Axim X50v	Skype for Mobile	WinMobile/ MS PocketPC Stylus	WiFi
Nokia N70*	Quick IM, SoonR, EQO	Symbian S60/T9	GPRS, 3G
Nokia N91*	EQO	Symbian S60/T9	GPRS, 3G, WiFi
Blackberry 8700*	WebMessenger	Java/ Blkbry QWERTY	GPRS/EDGE
SMC Skype WiFi	None	Linux/ T9? (no DTMF)	WiFi
Sony Mylo	Skype for Sony Mylo	Linux/ Mylo QWERTY	WiFi

* also accepts SMS messages

At the moment the best platform on which to experience Skype on a mobile device is the Sony Mylo with its embedded Skype client. It has both the standard Skype IM and Voice functionality (as well as supporting file transfer). It does not require any special setup other than to use the embedded Opera browser to log onto fee-based WiFi Hotspot services. Of course its other limitation is the availability of WiFi connectivity although Jon Arnold is already proclaiming 2007 as the Year of WiFi. The Mylo does present the most authentic and most complete Skype user experience. Skype-to-Skype calls are straight forward. Calling any PSTN number worldwide, provided you have SkypeOut access to the dialed number, is a simple matter of going to the Skype Dial menu, entering the PSTN number (with +Country Code) and clicking. Finally, as noted by both myself and others, the Mylo has superior voice quality due to its embedded VeriCall voice engine. One minor shortcoming is the lack of Outlook Contact synchronization; but this is not necessary given the overall intended Mylo experience as a personal communicator and not primarily a wireless phone.

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Last week's Voice 2.0 Conference in Ottawa exposed examples across the entire range of infrastructure and services that lead to voice-related applications. Martin Geddes led off with a keynote asking What's telephone for? What's the unmet user need? Where's the money and What's next? Sam Aparicio of  Angel.com provides an excellent commentary on Martin's presentation ending with Martin's economic model for Voice 2.0 telephony:

• Martin talks about an inversion of the model. While most of the money was being made once the call was connected, now most of the money is to be made pre- and post-talk.
• Before talking you have devices, connectivity, privacy, presence, availability, directory and integration
• After the call, social networking.
• Google managed to create $400B of market value by exploiting digital social gestures around hyperlinks, but Telcos still fail to see how CDRs are a goldmine.
• Some of the growth areas: B2C (I'm soo glad he mentioned this...), C2B -- whenever you cross the trust of a social boundary. An example: In Finland, some people organized a grassroots, non-official Voice Idol type system, creating tons of value for the carriers without much of their involvement.
• Some examples of new thinking: considering a cell phone as a retail outlet you get to carry with you wherever you go.
• In the end, whoever controls the context in which conversations happen. (Following the Starbucks model, where they get to capture the bulk of the value generated by the chain starting at the bush of Juan Valdes). He mentioned how, in the future, when in a hotel, options for room service will be in a buddy list.

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I have just been asked to moderate a Round Table at the Voice 2.0 conference in Ottawa next Monday; Topic: the Future Visions for Telecom. Recently there have appeared three posts that provide a foundation for discussion of the subject:

First, James Enck, a highly respected telecom analyst and blogger, based in London, posted details of his keynote presentation last week, Ten Things I Hate About You, at Telco 2.0 in London  James has developed a strategic framework around which he sees the future of telecom:

• Telcos have lost control of their core product
• Voice is becoming a feature, not a service
• Telcos can't grasp that consumers may not want what they're being sold
• Telcos thrive on scarcity - future value will be built around abundance
• Command and control culture is dead, open API's rule
• Telco DNA is fundamentally unsuited to the current dynamics of content
• Telcos expand their footprints physically, not virtually
• Telcos can't innovate
• Telcos shouldn't try to innovate
• Maybe the entire foundation is wrong

Definitely a landmark post. So what should the foundation of telecom become? Alec Saunders presents a first anniversary update on his Voice 2.0 Manifesto:

The customer experience predicted by the Voice 2.0 Manifesto is not of a single carrier, but rather of three classes of entities - access, directory, and applications.  As a customer, you'll pay to be part of the network, you may pay for an identity (and this is an idea who's time will come, although it's hard to see today), and you'll pay for applications that that help you communicate in a diverse number of ways.  This is a very different model from the traditional, vertically integrated, communications network.

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One of the toughest challenges I encountered in managing the Canadian operations of a PC hardware and, later, PC software vendor was to ensure that customer support flows seamlessly between the resellers and the vendor. It is the responsibility of the vendor to set up training and support programs that provide appropriate tools for the reseller but it is also the responsibility of the reseller to ensure that all its support employees get the proper training and support policies in place such that problems can be either resolved or elevated appropriately in a timely manner. Now I know the reseller support people take pride in their ability to solve a problem; however, when the going gets tough they need to understand when to elevate a problem beyond their experience and resources. And to a large degree it is the responsibility of the reseller's management to define that line within their support policies and then to communicate it effectively to their support reps.

The same applies when it comes to mobile devices sold through the wireless carriers. Andy Abramson (VoIP Watch) seems to have encountered a situation where a T-Mobile carrier rep just did not know when to escalate and persisted in tying up Andy's time when in fact the problem was beyond her/his skills and resources. So he spends almost three hours on a Saturday morning talking with a T-Mobile support rep trying to restore his Blackberry into service when after fifteen to twenty minutes it would have been obvious, in this case, to escalate the problem back to a RIM support person.

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Not much to do with Skype but I have just watched (via my Slingbox) the press conference where it was announced officially that Jim Balsillie, Co-CEO of Research in Motion, has signed an agreement to purchase the NHL's Pittsburgh Penguins. Jim's comments were interrupted at one point as his Blackberry phone rang (even in Silent mode mics will pick up the rf signal coming in and "buzz" nearby speakers). At the end photographers were taking pics of him holding his Blackberry with a Penguins logo on the display. (He spent most of the press conference saying he was committed to the previous owners' commitments to a new arena in Pittsburgh.)

I have been lucky enough to have had some behind the scenes exposure to hockey as a business (my neighbor's son plays for the Boston Bruins); as a RIM shareholder for the past eight years I have been watching Jim (along with Mike Lazaradis, Co-CEO) demonstrate how to build and operate a very successful high tech business.  (Who else can take a patent settlement and get more marketing buzz than any traditional marketing campaign costing the same amount?) It will be interesting to observe how Jim adapts to the professional sports culture and what contribution he can bring to professional sports in terms of business expertise and acumen. Jim has always been approachable and has integrity beyond reproach. (Maybe HP should recruit him to restore their image?) At this year's annual meeting he took time to give me a personal demonstration of the new Blackberry Maps GPS-based navigation feature that will be available this fall (yes, it will retrofit to more recent older models). His enthusiasm is infectious.

While most of the local press will speculate on whether he will move the Penguins to Hamilton, Ontario (it won't happen -- remember I said Jim has good business acumen), I wonder how long it will be before Penguins games become available on your Blackberry. Now there would be a revenue generator for the service providers and RIM gets some fraction of all that service provider revenue. And if they got to the Stanley Cup finals, the traffic demand could bring down the (at least Canadian) wireless networks! (I did watch one period of last spring's finals via my Slingbox during an intermission at a theatrical performance.)

And, let's face it, Jim is living the Canadian dream. How often will we find high tech entrepreneurs who can build their business virtually from scratch  to a level where they can own their own NHL franchise?

Now if we could just get a Skype client onto the Blackberry!

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During Canada's Centennial Year (1967) I was host for a student exchange with Finnish students; we have kept up contact over the past 39 years. Last week I asked one of them if s/he could translate the actual Helsingin Sanomat article reporting on their interview with Niklas Zennström (registration required) or at least give me the gist of it. Below (with minimal editorial correction of spelling and grammar)  is what my friend calls her/his "amateur translation".

The interview certainly goes well beyond the content of the Reuters summary report. (On the other hand there is nothing there that is going to impact eBay's stock price!) Note that, while my friend has been using English in both personal and business activities all these years, Skype Journal is not responsible for any mistranslation.

Of note in Niklas' comments:

• Niklas sees the future for wireless as being in WiFi (and WiMax) networks once they become more ubiquitous and more easily accessible. (reinforcing Ted Wallingford's recent comments on WiFi as the primary VoIP wireless medium)
• The issues with developing Skype for GSM or other wireless mobile phones relate to both processing power and memory issues (which translate into latency issues discussed in a post last weekend).
• He sees current rates for calls to wired lines as being the lowest we will see as someone has to pay for at least the connection.
• He only sees an explosion of mobile VoIP only once there are unlimited use fixed rate data plans available.
• The path to Skype as a ubiquitous mobile platform may be through "rebel" or "challenger" mobile operators who want to challenge the larger legacy service providers. But this is along the lines of what Andy was concluding in his recent "Being on the Inside" post.

A summary translation paragraph by paragraph goes as follows:

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[Yes, I know it's Sunday! But I started to write this up Friday.]

The past couple of weeks has seen much higher visibility for attempts to duplicate the landline long distance calling revolution generated by VoIP technology in the wireless space.

First Jajah launched Jajah Mobile at DEMO Fall 2006, where a Jajah client on your mobile phone redirects any calls starting with, say, "+" or "00" via a VoIP-enabled  backend. Your cell phone sends dialing instructions via either a SMS message or a GPRS over-the-air data service to trigger calls which bridge your phone and the called party. The beauty of this plan is that it does allow you to continue using the standard dialing algorithm; however, there can be a 20 to 30 second pause while the bridge is established. Almost simple but not all the way there. Alec Saunders provides a more detailed discussion; Russell Shaw has nine reasons why it is not a threat to neither mobile carriers nor VoIP service providers; Luca agrees; Alec rebuts.

In a trial using my Jajah-supported Nokia N70, I found that the GPRS/EDGE/3G connection worked whereas via the SMS service it did not perform satisfactorily. It does have a problem recognizing that long distance calls to within North America ("+1") should be handled via Jajah.  They have assumed a U.S.-centric model where it is probably just as cost effective to use the various fixed monthly rate all-you-can-use plans available through U.S. mobile carriers; the Canadian mobile space is one where we still pay 10 to 25 cents per minute for long distance calls outside a local calling area. With their primary focus on the U.S. market Jajah Mobile sends all North American calls via the underlying wireless service, not the Jajah Mobile backend. To correct this they need to differentiate between US and Canadian phone numbers.  (This is easily done; Skype users may note that flags associated with "+1" phone numbers differentiate between Canadian and US area codes.) Calls using the SMS connection need some more work by the Jajah people to get the software right; Alec tells me they are aware of the issue and working on it.

Another service introduced at DEMO Fall 2006, Grand Central, offers "One Number for Life" designed to aggregate all your phone activities, including voice mail, ring tones, call blocking, call redirection and call recording. Unfortunately since it's only available in certain area codes in the U.S. the economic argument only works in the U.S. However, to get two sides of the picture read the comments by Alec Saunders, Andy Abramson who thinks "it rocks"; Ken Camp and Ted Wallingford who basically remind us not to forget the basics of consumer telephony and the potential of Voice 2.0 for the sustainability of its value-add. Ted sums it up with:

We need to focus on increasing ACTUAL functionality and lose the obsession with placing band-aids on the infrastructure of yesterday in order to save a half-cent a minute, which is the basis of these firms' business models. When clients ask me about VoIP, they always bring up carrier cost savings. That may've been the case in 2001, but it's getting tougher and tougher to make that case. So I switch them off of cost savings and turn them on to new ways of thinking about communications.

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Yesterday Andy posted a reference to an article in today's San Jose Mercury News about various new "mobile lifestyle" companies that want to change the way we are using phones. But Michael Arrington has made an excellent point in stating that:

A bunch of VOIP services have launched to help people make cheaper calls from normal phones. None of them are compelling for the mass market.

The question any VC's need to ask when considering funding of any of these startups is "How do you intend to readily migrate these services into the mass market?".  This is a market that fundamentally picks up a handset, "dials" a number (or looks it up in an embedded directory to dial) and makes contact with the called party. Unless it can perform this basic simple algorithm for establishing a voice connection, additional services and features become technology showcases without hope for any mass adoption (and all the associated revenue opportunities).

Over the past three months I have had the opportunity to use the VoIPVoice UConnect when in my office and their CyberSpeaker W Skype phone when on the road. (Both use the same driver software and start with a standard telephone keypad user interface.) Two weeks ago I had the opportunity to preview what is coming out this fall in cordless phones. As mentioned previously I am evaluating some relatively new wireless devices. Over the past year I have not had to pay more than 3 cents a minute for any landline long distance calls whether at home or on the road beyond any basic service fees (and since mid-May that has gone to zero for SkypeOut calls within North America).

The combined experiences have helped me establish a base line for the level of simplicity I would expect as we see the emergence of both cordless phones and wireless mobile devices that use or access Skype (and/or other VoIP-based services) while serving as a standard telephone handset:

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During VON Fall 2006 I did two podcasts with Jon Arnold on some aspects of the show:

• Tuesday: Discussing the morning's two keynotes (Jeff Pulver and Ted Leonsis) as well as the IM session the previous afternoon.
• Wednesday: A discussion of Canadian companies participating at VON Fall.

Also Jon and I were both individually interviewed by TechNewsWorld about the implications of Skype's announcement of the Skype 2.0 beta with video.

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