Skype’s problem now is maintaining growth. The second challenge is to get Skypers to adopt premium services and think about dropping their home phone. There are many barriers to this. The PC must be always on. There is currently no embedded Skype device. People just don't want to lose their numbers. Free local calling may apply and be an advantage, as is 911. Many early adopters that have Skype have not yet added SkypeIn (lack of numbers availability) or SkypeOut, as they aren’t making either enough calls, or they are making them on another service.

Let’s consider what a Skype partnership with PhoneGnome would enable:

1. Home Phone numbers to be associated with Skype accounts. Thus every PhoneGnome activated with a Skype Account would 1) ring when the home phone rings (anywhere!) and 2) provide cheap SkypeOut rates when dialing out of your local calling area with the home phone. Thus more integrated than doing what I now do. Which is run SoftGnome and Skype concurrently.

2. Backup/Skype solution for when a computer is not operating. All Skype calls would ring the home phone. This is no different that Skype’s call forwarding option that is offered now. However the ring for this service would be free. Device availability could be communicated as well.

3. It would substitute SkypeOut for creating an agreement with another ITSP. It would also enable dial by number for all Skypers who also have PhoneGnome. This would result in many more SkypeOut minutes being used.

4. New service opportunities for the family are opened up. Currently SkypeIn numbers appeal to a small audience. Eg a business line, or access in other countries. Create a SkypeGnome strategy and the opportunity for additional services that cater to each member is increased. Eg one home line, four extensions. Voice Mail on Skype etc.

From my perspective it’s easy. It’s also easy to test. Probably easier for Yahoo who’s IM platform is more SIP centric than Skype's. People don’t like changing their phone numbers. It’s a pain. PhoneGnome reduces the barrier and requires no permission from the current operator or regulators. That’s a strategic advantage.

Vonage is launching a Wi-Fi phone so you can now use your Vonage account anywhere you can find a Wi-Fi connection. There's a $50 rebate on it... for a price of $79.99 and a minimum 3 month contract. There will be an early cancellation fee too. This is a substantial price break from the retail price I see elsewhere for the UTStarcom F1000. It almost suggests they are dumping it on unsuspecting consumers. Engadget described this as for the hard core only. Still it's a new market and the features you will be getting soon on these Wi-Fi phones will push the mobile operators. The Starcom can be purchased as a stand alone Vonage solution. Thus you no longer need an ATA / Vonage box to participate. Will Vonage offer a Softphone next for free?

The UTStarcom F1000 Wi-Fi Phone is a pocket-sized, wireless Internet phone that uses Vonage service by connecting to wireless Internet access points worldwide, also known as Wi-Fi hotspots. It's an easy way to bring your Vonage service anywhere. Vonage - The Broadband Phone Company

I presume the Starcom is locked to Vonage although I can't be sure. I doubt you can just buy it from Vonage and transfer it to another SIP provider at a later date. I'm tempted to try one. I'd like to hook it up to the PhoneGnome I'm using currently.

My Vonage experience came to an unpleasant ending today. I've been a Vonage customer since February 2004. Over time it just became less and less relevant. It neither provided the cost savings or the enhanced services that would really change the way I communicate. I was never willing to pay for a softphone that should have been free, etc. I've long wondered about how long the PoIP players have and think the outlook for Vonage and its clones is grim. Note Vonage was a second / business line for me when I began using the service. It was not a home PSTN / landline replacement.

As I cancelled my account the very rude Vonage operator (second one, first call was droppped) said there would be a disconnect fee of $41.99. I asked why and what was that for. Maybe he took offence to my honest answer. "Why are you leaving Vonage?" I don't need it anymore, I've replaced it with Skype and Phonegnome. He told me it was the cost of closing the account and in the terms. I asked him to show me the terms. He pointed me to the following:

3.6 Termination Fee (Does Not Apply to Business Plus Customers). You will be charged a termination fee of $39.99 per voice line if your Service is terminated for any reason during the first twelve months following the activation of your Service. Vonage Terms

I then pointed out that I had been a customer longer than 12 months. He then credited my account for the 41.99 he had already charged. So in the end cancelation cost of 0. I was just left feeling and wondering how many Vonage Customers who are exiting get stiffed for the $41.99. My bet is he is paid a commission on it. In any case it stinks of bad business practices behind the scenes. Probably an opportunity for a class action suit for some lawyer.

Why did I cancel. For awhile Vonage was my main business line. It could never be more they couldn't offer me or transfer my PSTN home number. It was more reliable than Skype at first, and the rates were better than my landline. Still in the end Skype wins. I've been using SkypeIn as my business line (and call forward to my cell) for months and I'd just concluded that I didn't need the backup anymore. At home almost all traditional international calls now go out on SkypeOut and if not that way they are handled by Inphonex my prepaid account on Phonegnome. Not quite as cheap as Skype. I now have the best of both worlds. Prepaid calling plans and a toll bar on my PSTN account. It could be all made better --- then that is another post.