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Tuesday, February 9, 2010

Three: One Billion Skype Minutes Served

Skype's Linda Summers told Monday's Mobile Monday London audience that Hutchison's 3 mobile network served one billion Skype minutes on its 3 Skypephones and other Skype-enabled phones in the UK, Sweden, Italy, Austria, Australia and Hong Kong. Those Skype calls run through Skype's Skype Lite servers, a potential Skype as a Web Service Platform.

Update: Minister for Digital Britain the Rt Hon Stephen Timms MP rings up the "billionth minute."

Paul Downey's MoMoLondon 2010-02-08 cc-by

Thanks to James Body for the tip, to Paul Downey for the notes.

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Thursday, January 21, 2010

Skype weighs in on Clinton's response to China Internet freedom

Skype wasn't a target of the recent attack on Google and thirty other companies. Google is considering leaving China, where they believe the attacks originated. The United States government has not adopted a position until today's speech by Hilary Clinton on Internet Freedom. Here is Skype's official response to the Secretary's speech. I'll comment below.

SKYPE LAUDS U.S. STATE DEPARTMENT FOR PROTECTING INTERNET’S FREEDOM TO CONNECT PEOPLE ACROSS BORDERS

WASHINGTON, January 21, 2010 – Skype, the global internet communications company whose mission is to enable the world’s conversations, applauds Secretary Clinton, her senior adviser for innovation, Alec Ross, the State Department and the U.S. government for embracing and defending the principles of freedom of expression, privacy, and the freedom to connect to the Internet, as well as for their use of Web 2.0 tools for 21st century statesmanship.

“Conducting international relations by encouraging online interaction is an example of the Internet’s power to change the way governments and people around the world engage as part of one global community,” said Staci Pies, Skype’s Director of Government and Regulatory Affairs. “Secretary Clinton’s concerted effort to transform the State Department’s role from traditional ‘government-to-government diplomacy’ to ‘people-to-people diplomacy’ is a clear recognition that more and more people around the globe are turning to technologies like Skype to freely connect with one another across borders and to increasingly facilitate diplomacy, interaction and understanding.”

It seems State heard Rebecca MacKinnon's guidance on how not to save the Internet by focusing on human rights to connect. How will these high minded aspirations become policy? Can we expect tariffs on goods from censoring countries? "This product made by people with a censored Internet" product labels?

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Tuesday, December 15, 2009

Free Speech Activists Use Skype Data Channel To Bypass Government Censorship

Skype and GTunnel

Skype Journal is blocked by China's government. Millions work around censorship and monitoring with networking tools like GTunnel. The GTunnel proxy on your PC connects to GTunnel servers. The client connects directly, through the TOR network, or through the Skype network. Connecting through Skype assures your packets are encrypted from beginning to end. This hides your IP address from servers. This also circumvents blockades of target servers like mine.

GTunnel is run by Garden Networks for Freedom of Information, a member of the Global Information Freedom Consortium. When you combine GTunnel with UltraSurf, FreeGate, FirePhoenix, GPass, and Ranking you get a complete suite for surviving online censorship and monitoring.

Caution for Chinese users: Skype cannot assure what you download from TOM-Skype does not include spyware. So download the international version from the Skype.com site or another independent source.

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Sunday, December 6, 2009

Tencent QQ 2009q3: 1B accounts, .4B active, 75MM online

Ahead of Skype worldwide is Tencent (HK:0700), a diversified Chinese online empire with the QQ instant messaging service at its core. Building on free IM, QQ makes money with "Online Media, Wireless Internet Value-Added Services, Interactive Entertainment Service, Internet Value-added Service, E-commerce, and Online Advertising Service." Tencent had another record quarter.

Tencent QQ User Activity Since 2004: User Behavior

QQ now has more than a billion (1057MM) user accounts. Active accounts in the last two weeks of the quarter are just shy of half that at 484.9MM. Peak concurrent users rose to 75.5MM. Twice as many accounts and nearly four times as much dialtone as Skype.

Tencent QQ User Activity Since 2004: Dialtone Density

QQ's "Dialtone Density" (quarterly peak accounts online as a percent of the number of active accounts online) shows customers are spending more time connected with the QQ network.

Tencent explains their growth as "driven by the popularity of our SNS [Social Network Service] applications which enhanced user engagement and activity through cross-platform integration, as well as increased usage of our IM services through mobile devices."

Tencent has an adjacency strategy, adding businesses that complement their core QQ service and sharing common usernames.

So they have casual gaming, MMO games, FPS games, desktop games, enterprise IM, mobile, email, feedreader, security, media player, download manager, pinyin authoring, news and community portal, search, mobile games, mobile QQ, mobile music and ringtones, blogging, dating, facebooking, online fashion, live video, music sharing/streaming, ecommerce shopping and payment services. They all make money, either through premium services and virtual currency, or through a huge advertising network.

Tencent can deploy service after service because QQ runs on a massive centralized infrastructure. Skype will have to package core capabilities through APIs before they can speedily build new services and let partners build on the Skype network.

See also:

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Sunday, October 25, 2009

Concept Art: The FuriousTeam Skype fish

Ever have problems with your Amoi (夏新) Skypephone? Furious Team makes a Furious Gold product that claims to repair, direct unlock, disable OTP check, reset phone code and factory settings to default, fix Bluetooth address and IMN, and read phone info. Haven't used it so I cannot say if it works or not. This eight year old GuangZhou company says the QCOM Smart Tool works on the AMOI SkypePhone WP-S1, AMOI SkypePhone WP-S2, and the AMOI SkypePhone 3 INQ. Here's a video of unlocking an AMOI S1.

So here's the Skype version of the FuriousTeam puffer fish, part of a whole school of FuriousTeam fish tailored for different jobs and communities.

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Tuesday, September 29, 2009

Watch out, Skype. Tencent steps out from China.

Tencent IM QQ - Global web siteTencent's QQ all-time peak concurrent users is 75 million; four times Skype's. Live stats. By contrast, Skype dialtone reached 18 million concurrent users earlier this month.

Tencent IM QQ - Global web siteQQIM is expanding from its Chinese base with its 990 million user accounts and 448 million monthly active IM users. IMQQ.com is QQ's new "global" portal for English speakers. At last report, China remains Skype's largest market.

Tencent IM QQ - Global web siteTencent just recruited Fons Tuinstra to moderate IMQQ's business section. He is one of the foremost Western journalists and social media experts living in China (blog, friendfeed, twitter, LinkedIn). Tuinstra operates the China Speakers Bureau, a thought leadership center for doing business in China.

Meanwhile, Tencent Holdings continues growth and profitability and a US$30.2 billion market capitalization (SEHK 700).

CORRECTION: Fons Tuinstra is not a Tencent employee.

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Tuesday, March 24, 2009

Tencent's QQ IM triples Skype's dialtone

Tencent Holdings (SEHK 700) published their 2008 financials last week. Among the highlights: stats we can compare with Skype. QQ has more than twice as many registered accounts and more than three times Skype's simultaneous online users. While QQ has many rich instant messaging features, it's not a voice platform. QQ has grown about ten percent quarter over quarter in peak activity since the end of 2008-Q3 when we reported they had 45 million simultaneous online.

For the 16-day period ended 31 December 2008 (in millions), Tencent reported:

  Tencent QQ logo  Skype Logo (hi-res)
Registered IM user accounts
(at end of period)
891.9 403
Active user accounts
(at end of period)
376.6 NA
Peak simultaneous online user accounts (for the quarter) 49.7 15
Average daily user hours 710.9 NA
Average daily messages(1) 4,282.6 NA

(1) Average daily messages include messages exchanged between PCs only and exclude messages exchanged with mobile handsets.

Nearly all of QQ's users are Chinese readers and speakers. China has an Internet population of 298 million people, Taiwan adds another 15 million.

How can QQ have more registered and active accounts than people who have Internet? China's enormous cybersalon culture. Some estimates say China has as many as 300 thousand Internet cafés of 100 seats or more, about half unlicensed. So for each person with home or work Internet connection, another person drops by a local Internet café.

QQ is bigger and different than Skype and remains one of Skype's biggest rivals in Skype's biggest market.

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Sunday, January 25, 2009

新年快樂 (Xin nian kuai le!)

http://bluebison.net/sketchbook/2008/0108/chinese-ox-small.png

Year of the Ox! Thanks to bluebison for the cool sketch.

Skype's partner in Hong Kong, TOM-Skype, decorated the Skype logo today.

TOM-Skype logo - Lunar New Year

Skype's Taiwan partner, PChome, posted a holiday banner…

PChome and Skype - Lunar New Year

PChome and Skype - Lunar New Year

and a holiday promotion.

PCHome and Skype - Lunar New Year

PCHome and Skype - Lunar New Year

PCHome and Skype - Lunar New Year

I love PChome's dressing up of the Chinese character for "ox" with horns and black/white patches. See the ox character in 24 typefaces.

On a more serious note, Ms. Cristy Li blogged a series of moving photos she took last week from Sichuan of people preparing for the Spring Festival.

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Sunday, January 18, 2009

China requires real names of online gamers

Online gamers have to give real names (China Daily), eroding the privacy that comes with anonymity and pseudonymity. How long until TOM-Skype is required to compel its users to give up their identities too?

Anonymous by Laughing Squid.

Anonymous communication is a right. It allows political free speech. It protects people who blow the whistle on evil. It lets people call for help without retribution. It empowers people to explore their wild sides. Privately.

So anonymity in Skype is important. Skype users can be anonymous on Skype up to the point they spend money. Will Skype comply when China asks for your real name? Will Skype require TOM-Skype users to give real names too?

That's Skype's next moral challenge.

photo: Scott Beale / Laughing Squid

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Wednesday, January 14, 2009

Splashtop preloads Skype

Splashtop first screen

"With Splashtop, you can access the Internet and your favorite applications seconds after turning on your PC."

"Be online seconds after you turn on your PC. Why wait for Windows to load when you could be surfing the web right away!"

Whether it's Windows 7 or Android, people launch Skype on startup. Connecting to the network gets you "Skype dial tone," so you can make and take Skype calls and chats and sync your history. I want Splashtop on my next laptop.

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Sunday, January 4, 2009

Would you trust Skype with your vote?

I've been wracking my brain for the defining Skype moments of 2008.

It comes down to Skype's identity. The marketing, psychology, defining oneself sense; not the login, badge sense.

Brand marketers may talk of lovemarks, but trust comes before love. two bottles of Coca-Cola BlākWe trust Coke products to be Coke-like in taste, feel, fragrance, color, and packaging, for example. We trust products not to hurt or endanger us (unless you're into that kind of thing). We trust brands to keep their promises.

The people of Estonia trust their electronic voting systems with the fate of their nation. In a country that recently survived cyberwar, that's a lot of trust.

Estonia conducts elections online.  Building on successes in 2005 and 2007 they recently approved voting with mobile phones by 2011. The Estonian National Electoral Committee (VVK) will provide SIM chips to Estonian voters for free. AS Sertifitseerimiskeskus (SK) logoThe special chips from AS Sertifitseerimiskeskus (SK) will authenticate voters and keep vote transmissions secret using public key encryption.

Would you trust Skype's technology and Skype's business with your vote?

If you asked me in 2007, I'd have said yes. Skype's brand promises privacy and safety. Outside security experts applauded Skype's authentication, strong encryption, and ability to bypass most obstacles. Skype is an eBay company (though few people know this) and borrows some of our trust of eBay and PayPal.

I'm unsure now, as 2009 starts.

Skype's technology is strong but incomplete. Skype's encryption is end-to-end, from Skype client to Skype client. Nobody can listen in. So the weak points are the end points: a user's PC or Skype-enabled device and the gateway to the the voting system. Secure those end points and you'd have a pretty secure system.

That's not the whole story, though. We learned in 2008 that Skype shared a copy of their desktop source code with the TOM-Skype joint venture in China. That includes Skype's authentication (proving who you are) and encryption (foiling eavesdroppers) code.

We don't know how many people, including TOM-Skype former employees, contractors, and members of Chinese security services, have access to that code. (Hypothetically, if I offer a $1000 bounty, would someone sell me a copy?) Many people have the means to interfere with an election conducted through Skype. Given time, we know a way finds itself in the hands of those with a will. 

Speaking of intent, let's return to the joint venture. Skype's founding executives traded code for access to China. China is now Skype's largest market. The new executive team tightened up operational security, minimizing unauthorized access to log files, surveillance, and source code.

Despite Skype's 2008 policy review, the original deal stands:

  • TOM-Skype gets a copy of Skype's source code with each major release,
  • TOM-Skype modifies the Skype software to comply with China's government agencies,
  • TOM-Skype shares data collected with users with Chinese agencies,
  • TOM-Skype does not disclose that privacy breach to customer before or after sharing. 
  • Skyper's talking with a TOM-Skype users are surveilled like TOM-Skype users

This is the arrangement we know of. We don't know if Skype agreed to similar arrangements with, for example, EU law enforcement or USA intelligence agencies.

Landline and mobile phone companies have long given keys to their networks to law enforcement and communications intelligence agencies. We're accustomed to the rule of law applying to our phones. We hope, we assume, we believe, perhaps naïvely, that our phone company keeps our secrets.

It is sad to let go of those illusions regarding Skype.

So this goes back to Skype's brand promise of privacy and security.

Do you trust Skype? 

Would you trust Skype's corporation with your vote?

With your country? With your liberty and freedom?

I'm less certain.

 

photo: Coca-Cola Blāk by The Rocketeer

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Thursday, January 1, 2009

Phil Wolff's 26 incriminating 2009 Skype Predictions

Last year's Jim Courtney's 2008 predictions and mine
Oakland California's local fortune cookie factoryIn 2009:
  1. MacWorld sucks without Steve Jobs.
  2. Steve Jobs steps down as Apple CEO.
  3. Skype brings back Skypecasts with a new feature: with one click, introduce spammers, con artists, and sexy webcam girls to each other.
  4. Skype for Neocortex. Mood based on serotonin levels. Very high quality audio and video by tapping directly into the optic nerve and auditory system. Some side effects.
  5. Skype for Lovers. Extension of Skype 4.1. Just one buddy to dial. No interruptions. Ultrasimple UI: click the heart.
  6. Skype's new platforms have more active developers than BT Ribbit. More than Google Android. Fewer than Apple iPhone.
  7. Litigation. 1530 sleep deprived patients sue Skype for keeping them up late.
  8. Google Central will be exciting.
  9. Google Video Talk adds multiparty video.
  10. The Emerging Communications Conference (eComm) will sell out.
  11. Yahoo! fires thousands of people. Decimates the messenger team. Hires a new executive team. Reorganizes. Again.
  12. Skype introduces multiparty video. The kids love it. WebEx hates it.
  13. Skype for Asterisk gets video call support. Dating sites love it.
  14. Skype for WoW builds on Skype for Asterisk. The raiders love it. 
  15. Skypephone comes to the Americas via partnership with with US mobile carriers. Wal-Mart will carry it. Nothing for Canada.
  16. 3 INQ1 sales will cut into 3 Skypephone sales in the UK.
  17. U.S. Mobile Carterfone rules (to free mobile phones from carrier contracts) will be considered by the FCC.
  18. VoIP falls from telecom jargon. Even VoIP bloggers stop using the term. The public starts using Skype as a generic name for internet talk.
  19. eBay's auction businesses will do well in tough times, better in the second half of the year.
  20. Skype will make $630 million in FY2009.
  21. Peak Skype usage will top 18 million simultaneous users.
  22. Skype will serve 23 billion minutes in 2009Q4.
  23. Skype scores product placements in:

  24. Skype issues new krypto since its old cryptographic source code escaped from TOM-Skype control
  25. Skype Video for Mobile. Skype buys a streaming video service for smart mobile camera phones.
  26. China approves SkypeIn and SkypeOut.

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Saturday, December 20, 2008

China blocks New York Times and Skype Journal

Welcome to our club, Gray Lady. Skype Journal is blocked by the GFW too.

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Monday, November 17, 2008

Tencent's QQ: 45 Million Simultaneous Online

QQ v. Skype: Bigger, Different, Chinese

Tencent Holdings (SEHK 700), one of Skype's biggest competitors, had a great quarter. From their 2008Q3 financial release (pdf):

  • 856.2 million: Total registered Instant Messaging (“IM”) user accounts, 4.1% growth QoQ [quarter over quarter]
  • 355.1 million: Active IM user accounts, +3.9% QoQ
  • 45.3 million: Peak simultaneous online user accounts for IM services recorded, +7.9% QoQ
  • 4.4 million: Peak simultaneous online user accounts of QQ Game portal (for mini casual games only), +11.2% QoQ
  • 30.3 million: Internet paying subscriptions, +16.1% QoQ
  • 14.8 million: Mobile paying subscriptions, +10.4% QoQ

More people actively use QQ instant messaging than live in the United States and Canada [Tencent defines "active" as logging in to an account in the last 30 days of the quarter].

QQ IM has 3 simultaneous users online for every Skype user online.

Skype has 370 million user accounts, does not report active users but estimates vary from 36 to 85 million people, and peak simultaneous is around 14.5 million.

Skype report minutes, when Tencent does not. Live voice and video calls. Ten billion minutes served in June 2005 (before eBay bought them). 100 billion minutes served as of February 2008. 18 billion minutes a quarter as of 2008-Q3.

Mini-SWOT

QQ has a few strengths.

  • No QQ-In or QQ-Out. Regulations forbid connecting to the public telephone network. So Tencent focused their resources to create online communities, content, and games that both trigger talk and make money. QQ commerce is so hot QQ has one of the world's largest virtual currencies.
  • Multiple OS clients. Windows. Windows Mobile. Mac beta. Browser. Linux. 
  • Age and Incumbency. QQ celebrates their 10th year of service. Skype is only five years' old. Brand awareness and loyalty build with time and experience. QQ has effectively built IM dial-tone (confidence that people will be available through the network) and network lock-in for its customers.
  • Monolingual, Monolithic. QQ only needs to support Chinese. So it's easier for people to find other people with similar interests. Spoken Chinese languages pose a linguistic barrier, but not too much since Mandarin is a common second language. 

Weaknesses.

  • Sub-Global reach. Skype has to build markets in each country, in every language community. This makes it harder to localize software and web sites, provide customer service and tech support, and talk with a community; the time and costs pose a barrier to entry. Once localized, Skype has an advantage over entrants. QQ isn't even trying to serve non-Chinese cultures.
  • No PSTN or mobile voice integration. No income. No new points for the company to learn.
  • Platform 1.0. Like most IM providers, QQ offers a simple messaging API. A handful of third-party clients offer alternatives to QQ's own clients. However Tencent lacks a platform strategy, building foundations for third-party partnerships beyond IM clients.

Opportunities.

  • Markets: India. Chinese Diaspora.
  • Features: Voice/Video/Conferencing.
  • Business: Alliances with Indian and western portal/IM companies

Threats.

  • TOM-Skype joint venture. Working inside China to spread Skype's brand.
  • Premium quality audio and video, a qualitatively different experience.
  • The four national Chinese telcos who may enter the market and who restrict PSTN access.

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Wednesday, October 29, 2008

Global IP Solutions Coming Back to Life: Driving the Desktop Video Space

Global IP Solutions today announced a white paper on Desktop Video Conferencing, providing a background for their video infrastructure technology that has the potential to make video calling and video conferencing available to a much broader user base beyond Skype's (even though it is quite large) and SightSpeed.
Many of you will recall that Skype's original voice engine came from Global IP Solutions (formerly Global IP Sound) and contributed to Skype's initial adoption through both its ease of use and voice quality. In April 2006, Skype acquired Camino Networks whose voice engine provided improved features such as echo cancellation. Camino's President and CEO was Jonathan Christensen, Skype's current General Manager for Audio and Video.
Global IP Solutions went on to supply their voice engine to other players, such as Oracle and Yahoo but, as a company, they have been struggling; their most recent quarterly report demonstrated the extent of the revenue drop-off after loss of the Skype royalties.
This past April, GIPS announced the appointment of a new CEO, Emerick Woods (see full disclosure below). Since joining GIPS Emerick has led a reorganization of the company that included dropping their professional services offerings due to not only lackluster revenue but also the channel conflicts that operation created for their core audio and video infrastructure technology business. They have also closed a Tokyo office and settled outstanding customer lawsuits, including one with Skype where GIPS' previous claims were denied in an arbitration resolution. As indicated in this interview with iLocus, they are moving to extend their customer base for their Voice Engine product line. As an initial move in August there was the announcement of Voice Engine for iPhone accompanied by a white paper.
In my interview with Emerick at that time, he pointed out that, while GIPS offers, through its various Voice Engine products, a total solution linking the Internet inbound/outbound connection to the user's microphone/speakers, customers can also customize the voice engine, particularly when it comes to codecs. Customers can use either the GIPS codecs available with the voice engine or any other standard codec. Another feature he emphasized was their independence from operating system restraints and their support for various mobile platforms.
One additional focus has been on working with their current customer base to build stronger customer relationships that can extend their various Global IP Solutions implementations. Going forward, GIPS will be investing in innovation with video as a key focus.
Today GIPS released a Desktop Video Conferencing (DVC) white paper, authored by analyst Jon Arnold, outlining "the value proposition behind desktop video conferencing, especially in conjunction with other solutions, such as telepresence. Supporting this is an analysis of the trends that create the momentum we believe will make desktop video conferencing as ubiquitous as PCs themselves, and even mobile phones in the years to come."
Jon talks about the spectrum of video conferencing solutions from telepresence systems employing large "real life" HD video displays, such as offered by Cisco and Polycom, to boardroom systems that provide the basics of teleconferencing via standard display monitors, to desktop conferencing where the user does not have to leave his/her desk to participate in a video conversation.
In short, compared to other video conferencing solutions, the value proposition for DVC is based on three variables: quality, cost and flexibility. Today’s DVC solutions can deliver a high-quality experience, at an affordable price point, and across a wide variety of environments. Aside from complementing the other types of video conferencing solutions, DVC can be deployed in a host of scenarios that are simply not practical any other way.
Jon goes on to provide tables comparing the three scenarios and then goes into details on potential market size for DVC as well as enabling trends that will help provide an appropriate infrastructure for DVC. On a SquawkBox conference call this morning we discussed one aspect: support for HD video. Its minimum 720p resolution will require higher bandwidth upload speeds (> 1.5 Mbps) that I have been told will be coming to Rogers Internet next year with an implementation of the DOCSIS 3 infrastructure and probably to other cable Internet services; recall that the widespread availability of broadband Internet was one factor in the rapid adoption of Skype back at its launch in 2003.
He then goes on to discuss the complexities of the providing and adopting the underlying technologies starting with video quality. Synchronization of audio and video, a consistent user experience, the variability of DVC end point configurations and support for a wide range of camera devices are other factors.
And, now for the commercial: GIPS is offering four products, Voice Engine and Video Engine for the PC client side and Voice Conference Engine and Video Conference Engine for the server side, that will allow ready embedding of desktop video conferencing into their customers' services. Basically GIPS is providing platforms that allow developers, enterprises, service providers and end users to have a high quality DVC experience. Jon concludes:
With GIPS, they have a complete engine that handles all the complexities of IP communications, and with that, a clear path for allowing DVC to reach its full potential, not just at the desktop, but in the mobile world as well.
GIPS has put up two demonstration videos for comparison: one "Traditional Video Conference" and the other "Video Conference Using Global IP Solutions".
The only current customers using these services are Oracle and Baidu, the Chinese portal; however, discussions are being carried out with several prospective customers, probably including many in their current customer Most interesting is their potential for mobile video; the only North American carrier supporting video to date has been Rogers; however, its most obvious problem is finding other users who can take video calls. Introduction of the Nokia N95 8GB was supposed to expand the video calling-enabled user community; however, iPhone and BlackBerry Bold have stolen the 3G phone market.
Skype's High Quality Video, SightSpeed's acquisition yesterday by Logitech, Qik on Blackberry and Nokia N-Series combined with news of GIPS video engine offerings are all precursors to a much broader adoption of user-friendly video in both business and personal conversations in the future. (Yes, we all know users have been looking for Skype video conferencing; when?)
Skype Journal: On2 Powers Skype High Quality Video
Full disclosure: GIPS CEO Emerick Woods was the Vice-President, Internet of Quarterdeck Corporation in the mid-1990's with whom I worked on several business development projects involving partnerships with ISP's of the time. Over the past 12 years, Emerick, in his capacity as CEO of several startups, which have gone on to be sold, has hired the author at various times for his business development services. The author, however, has no business relationship with Global IP Soltuions. One more clarification: Emerick has the same initials as a well known Tiger and loves golf just as much.
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Tuesday, October 28, 2008

TOM-Skype Breach: Nart's Recommendations to Skype

This is the fourth and final of four posts resulting from an interview with Nart Villeneuve, principle investigator of the Citizen Lab report "Breaching Trust".

Having discussed some background to Nart's research, the activities of the Citizen Lab and answers to Phil's questions, Nart had a couple of recommendations for Skype going forward. As background, the Citizen Lab is a affiliated with the BerkmanCenter for Internet & Society's "Principles on Free Expression and Privacy" initiative"to protect and advance individuals' rights to free expression and privacy on the Internet through the creation of a set of principles and supporting mechanisms for ICT companies".

The goal of this project is:

Through the articulation of a broad set of common principles, the development of resources for implementation and a compliance structure, this collaborative effort is working to formulate an industry-wide response to guide businesses when they encounter laws and practices that may contravene international human rights standards or be at odds with law or culture in their home jurisdiction.

Participants in this project include Microsoft, Google, Yahoo along with several human rights organizations. It is hoped that having a joint industry-activist initiative would help companies avoid situations similar to the one which Skype has encountered in its TOM-Skype relationship.

Update: as I was writing this post today, a New York Times story on this initiative, now called the Global Network Initiative, broke and has more details.

An initial draft document (update: final document to be released tomorrow) is under review amongst the participants but Nart brought out three recommendations for Skype that would be consistent with the guidelines in the draft document:
  1. Include in Skype and/or the TOM-Skype client, as appropriate, an ability to provide notification to all participants in a conversation that a contact is participating in the conversation via the TOM-Skype client. In effect, this could be included in a more general identification of the version of Skype that other participants in a conversation are using. The reasoning for the providing version information was to let other participants know, via the version number, which feature set a participant can use in their Skype client installation.
  2. When a user types a message that is diverted via the TOM-Skype filter, a message, indicating that the recipient is missing content due to government regulations, comes back to the initiating party. For example: "To comply with local laws, this message has not been displayed to your contact." Often Nart found conversations where someone would type a message repeatedly when it was apparent the receiving party was not understanding the message being sent, yet the sender did not realize that the message was being filtered.
  3. Become a participant in the Global Network Initiative and its dialogue.
The hope is that, through an industry-wide initiative, foreign companies entering the Chinese market would have more negotiating power and a protocol for addressing issues that are raised in the process of establishing a business relationship in countries where the climate for free expression and human rights is restrictive. In an Opinion piece today, Om has other thoughts on the morality of this approach.

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Tuesday, October 21, 2008

TOM-Skype Breach: Answers to Phil's Questions from 2006 SJ Post

This is the third of four posts resulting from an interview with Nart Villeneuve, principle investigator of the Citizen Lab report "Breaching Trust".
Two weeks ago Phil republished an April 2006 Skype Journal post with about sixteen questions related to the TOM-Skype security breach discovered by Nart. My interview provided answers to several of these questions but I ran them by Nart for more completeness, where an answer or response was feasible.
1. Is TOM only filtering chats where at least one of the callers' accounts were signed up by TOM Online?
A: One party must have the TOM-Skpe client installed. For example, if you (a normal skype user) sign in via a friends Tom_Skype client you'll be filtered. If you (tom user) sign in on a normal Skype client, you won't be filtered.
2. Will TOM filter chats if both parties are Chinese nationals but outside the PRC, say traveling in the US?
A: It is all dependent on which client software is installed. If you are using TOM-Skype you'll be filtered no matter where you are (although the degree to which you are filtered may be dependent on your IP address). TOM-Skype would definitely have the Call Detail Record associated with the call.
3. Is TOM only filtering conversations where at least one of the parties are using the custom [TOM-Skype] version of the Skype client written for the joint venture?
A: Yes
4. Will TOM filter conversations using the TOM client being used by non-PRC nationals who are outside of China?
A: Since you have a TOM-Skype client here, Yes.
5. Does TOM's contract with Skype provide for disclosure to Skype and Skype users when their information is provided to a government official? Not at this time.
A: I don't know. It would be nice to have a Chinese speaker read the EULA you agree to on the install.
6. Are records of what the filter does kept? If so, by whom? Does Skype have or keep copies of those records?
A: Yes: TOM-Skype’s servers: unknown.
7. Does the filtering mechanism use a list of keywords? If so, is the list public? May I have a copy? Who has the list? How often does it change?
A: There is an encrypted keyfile that the TOM-Skype client downloads that I believe contains the keywords. There are also a few entries from the keyfile hardcoded in skype.exe (TOM-Skype version)
8. Are the keywords only in Simplified Chinese or are they in other languages too?
A: All languages but 60% English and 40% Chinese for the majority of conversations. English appears to be swear words, Chinese appears to be political.
9. Is China the only country where Skype and Skype's partner have set up filtering? Have you done any testing for any other countries?
A: I haven't tested any others.
10. Do all Skype chats have the potential for a hidden participant, whether human or a robot? ??
A: I don't know.
11. Are filenames for transfer subject to filtering?
A: There are logged messages that are essentially the "this file was shared with participants of this conversation" message.
12. Are people's names among the keywords?
A: Possibly SkypeID's (but not real names), but also names of Chinese political people e.g. Hu Jintao
13. Are the content of files transferred via Skype also subject to filtering?
A: Unknown.
14.. Does Skype encrypt end-to-end the IMs that are subject to filtering? ??
A: Yes. TOM added an addition layer to the client that uploads the messages.
15. In a multiparty, multinational chat, can I as an American citizen have my text to a British subject filtered if someone from Shanghai is in that chat too?
A: I am not sure about it being filtered (such as not to be displayed in the recipient's chat window) but it can be logged.
16. Are audio conversations, where at least one party is in China, being listened to, filtered or recorded?
A: Only the Call Detail Record, there appears to be no interception of the voice stream.
17. Are all calls filtered, or only if users meet certain criteria, or are conversations selected for filtering randomly?
A: Other than the call detail record I don't have evidence that suggests the content of voice calls were being filtered or monitored, but I wouldn't rule it out as a possibility.
Bottom Line: If your chat conversation includes someone using TOM-Skype, you can assume there may be filtering of chat messages and/or logging of Call Detail Records. Conversations where all participants are using the normal Skype client cannot be filtered or logged.
Next post: Nart's recommendations to Skype.
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Thursday, October 16, 2008

TOM-Skype Breach: The Citizen Lab

This is the second of four posts resulting from an interview with Nart Villeneuve, principle investigator of the Citizen Lab report "Breaching Trust".

After discussing the report itself and some of the follow up activity, we went on to talk about The Citizen Lab, its mission and its activities. From their own website they are "focusing on advanced research and development at the intersection of digital media and world civic politics". Nart described their activity as research on the politics of technology.
Under the leadership of Professor Ronald Diebert, their activities are carried out by graduate students with an undergraduate degree in either computer science or political science who join the lab to build up expertise in the other discipline while carrying out their research. They explore issues using their strong understanding of technology to "lift the hood" behind various politically and/or economically motivated intervention of web-based information exchange by governments and other agencies.
Assisted by a worldwide network of volunteers and a check list of relevant websites, they can develop a sense of the content that governments are censoring. According to Nart, all governments do some form of surveillance but definitely not to equal levels of resulting actions. At one extreme one finds outright blocking of content but the UAE has economic motivation to block Skype to protect a local communications monopoly. Apparently the Saudis are most interested in blocking porn. China obviously allows "uncensored" content to pass through but we are aware that Skype Journal is often blocked.
They will look at filtering techniques used by various countries, the type of content being blocked and try to determine the "local" government's policy environment in which filtering is taking place. At this point in time most filtering addresses websites but gradually some countries are moving into screening applications (as we have seen with TOM-Skype). There is also "social filtering" censorship activity that involves blocking of porn, drugs and gambling.
At this point companies, such as Google, Microsoft and Yahoo, are modifying their products to address various "local" issues. For instance, Google has modified their process for enquiries from designated countries to "pre-filter" results delivered from their own servers in the U.S.. But then they put out a notification for "filtered" results with the wording for some search results: "to comply with local law, some results are not displayed". On the other hand Google will not offer GMail accounts with a ".cn" domain name and does not make Blogger available in China.
The Citizen Lab also participates in a broader effort to develop guidelines for Internet companies operating in China. But, given that has much broader implications, it will be the subject of another post.
Next post: Answers to Phil's Questions

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Wednesday, October 15, 2008

TOM-Skype Breach: Meeting the Primary Investigator

This is the first of four posts resulting from an interview with Nart Villeneuve, principle investigator of the Citizen Lab report "Breaching Trust".

Last Tuesday afternoon I returned to a University of Toronto building I had last visited in its role as an engineering students' residence in the mid-1960's. Abandoned as a residence in the 1980's, the building was restored in the late 1990's to house the Munk Centre for International Studies, when the university's Centre for International Studies was designated as a strategic priority for future growth. In the basement of the former Devonshire Place South House, I found the Citizen Lab, "an interdisciplinary laboratory focusing on advanced research and development at the intersection of digital media and world civic politics".


I spent 90 minutes with Nart Villeneuve, the PhD student and Psiphon Fellow, who was the principle investigator resulting in the Citizen Lab's recently published "Breaching Trust: An analysis of surveillance and security practices of China's TOM-Skype platform". We covered a wide range of issues related to this report, from the initial contact with New York Times through to the follow up activities as a result of the report's release. We also discussed the broader mission of the Citizen Lab and some recommendations for how Skype should address the challenge of participating in the China market while making all parties aware that their conversation activity may be tracked.

Key points about the report and the follow up activity:
  • A major issue to address in dealing with the media has been the confusion resulting because there is a need to separate out the security breach that allowed Nart to gather the data he has gathered and the functionality of the TOM-Skype servers resulting in the capture and logging of chat conversations and Skype calling activity. (There was no evidence of capturing voice calls themselves).
  • As a result of reporting this breach prior to release of the document to New York Times, the security breach itself has been closed but there is no evidence that the actual information capture activity has ceased. Nart has been checking periodically to confirm that the security breach remains closed.
  • There was a period of several hours between finally establishing contact with someone at Skype who could initiate action to address the security breach and the final close down of the breach. During this time Nart observed blocking of read access to the directories but since he knew the file names he was still able to follow a reconfiguration of the web servers, removal of sensitive files, such as an encryption key, and disappearance of the log files such that they were not accessible.
  • While they have captured a significant quantity of call log data going back a year, they are being careful not to expose any of the detailed information which comprised both chat message logs and what amounts to call detail records for voice calls; more details are in the report itself. Basically they don't want to compromise anyone individually.
  • While the log files are still under analysis, they have been encrypted while he continues to mine them for any additional information they may expose. Eventually it is his intention to destroy even these files.
  • Messages were about 40% Chinese, 60% English with a small smattering of other languages.
  • While it would be very difficult to reconstruct an entire conversation thread, as only each individual message was logged with no ready reference to other messages within the thread, they could build social graphs of conversing parties.
  • There are at least two versions of the TOM-Skype client: a normal version and a second version with additional features such as a Baidu Toolbar; however, the promote.dll module in this can trigger off anti-virus scanners such as Norton.
  • Other evidence that the servers had been compromised was the discovery that the servers were hosting "pirate" movies and had the appropriate software to support Bit Torrent transfers.
Nart had three definite recommendations for Skype; we also covered the broader issue of global enterprises doing business in China. These will be covered in future posts.
Next post: The Citizen Lab: Its broader mission and findings.
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Saturday, October 11, 2008

Michael Robertson: Use Skype - Go Directly To A Chinese Prison

Reposted with permission from Michael Robertson's blog.

A research firm recently revealed that eBay and TOM are colluding with the Chinese government to spy on users of Skype. Together they monitored user's text chats and stored those containing politically sensitive topics like freedom, democracy, Tibet, opposition to the communist party and Falun Gong. They also track voice call participants. Presumably they turned this data over to the government and it's impossible to track how that data has been used.

“What people have been implicated by their Skype usage and subsequently interrogated, imprisoned or executed?”

If history can be a guide it's logical to assume that the data resulted in prison terms or worse. In 2005, Yahoo was involved in a similar disclosed incident in which it turned over emails to authorities which netted a 10 year prison sentence for a reporter who dared to talk about democracy. I wrote about it when it happened and questioned where one draws the line chasing the almighty dollar (or Yuan). Two years later Yahoo CEO Jerry Yang was in front of Congress explaining the situation and apologizing to the mother of the imprisoned.

In response to the revelation of spying on calls and instant messages a spokesman for Skype incredibly stated that Skype is "the most secure forum of publicly available communication." eBay points the finger at their Chinese partner TOM claiming they had "no knowledge or consent" of this privacy breach. This level of compromise requires access to source code which eBay would have had to provide them. Maybe eBay didn't have direct knowledge of these alterations. However no one can deny China's well known efforts to police and censor their citizens net activities which surely eBay executives know about. To provide the source code with no auditing or oversight shows at best a convenient excuse. One wonders how long this would have continued without the whistleblower and how many other countries Skype cooperates with to allow the same spying.

More likely at least some within eBay/Skype knew exactly what TOM was doing and consented because it gave them access to the enormous Chinese market. Its estimated that nearly half of Skype users are from China. This is why Cisco and others design special networking equipment enabling the Chinese government to snoop and lock down their country's net activities. Similar to Skype they are lured by the dollars awaiting any country that cracks the Chinese market.

I would call on eBay to be forthcoming with information on this situation by publicly disclosing details of this situation which will require tough questions of their partner and Chinese government. This would demonstrate that eBay's publicly stated "concern" is more than a press tactic. Specific questions eBay should answer include:

  1. When did this spying start?
  2. What users did it affect?
  3. When specifically did it stop? Has it stopped?
  4. What specific terms were monitored? (Users have a right to know if their messages have been implicated.)
  5. What people have been implicated by their Skype usage and subsequently interrogated, imprisoned or executed?
  6. What steps will be taken to defend these people or get their convictions overturned?
  7. Has previously stored data been deleted? How can users be sure?
  8. What will eBay do to insure that this spying isn't reactivated as soon as the press attention subsides?
  9. What other companies and countries are monitoring Skype communications?
  10. What auditing steps is eBay implementing to make sure this does not happen again?

Let me be clear about Gizmo5's policy and refute Skype's spokesman's claim that Skype is the "most secure". Gizmo5 doesn't spy on calls and messages and we wouldn't give that info to any government. We encrypt calls between Gizmo5 users and have given no one the decrypt key. We would not allow a partner or government to do wholesale monitoring of communications - no matter how many billions of prospective customers they have. If ordered to take action by a government that defies basic Western freedoms we would do it only under threat of imprisonment and the information would then be disclosed in this blog condemning the action and striving to defend any of those adversely impacted. I challenge eBay/Skype to do the same. Defend their users. Defend their brand. Defend freedom.

-- MR

Michael Robertson is an entrepreneur, co-founder of Linspire, SIPphone, and MP3tunes.

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