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Article by
John Smith

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 So what is Skype?

Skype lets you make free phone calls across the Internet from computer to computer. The service achieves this bit of magic using technology called Voice over IP or VoIP for short. Two people download a free piece of software, add a computer headset and away you go making free calls anywhere in the world (see figure 1).

But Skype is more than just free computer to computer calls. Two additional services, called SkypeOut and SkypeIn, add telephone calls to and from people without computers. Yes, you can call people who use only a phone and they can call you. Both of these services require someone to maintain equipment that translates calls from the Internet to the phone network so they are not free. Due to the bulk purchasing power of the company, they do not cost very much.

SkypeOut is a pay-as-you-go service allowing you to call someones phone from your computer. If your child at university is happy to use their laptop but grandma doesn't have a computer, SkypeOut is for you. (see figure 2)

To use SkypeOut, you create an account at the Skype web site and purchase some SkypeOut time. You can now make calls to regular phones using a simple dialing interface on the computer. Skype has negotiated deals across 24 countries and within the group of countries, calls cost about 2 US cents per minute. Next time you want to call Adelaide, Australia from St. Petersburg, Russia just think of Skype.

Skype says that it is negotiating for rates in other countries but for now those countries will be more expensive.

SkypeIn lets people with a phone call you and get you on your computer. SkypeIn also gives you a presence on the traditional phone network. To do this, Skype gives you a phone number of your own. Grandma or whoever, calls this number and Skype's software routes the call over the Internet to your computer wherever you are in the world. Now you can truly be sitting on a beach answering the phone as if you were in the office. (see figure 3).

SkypeIn allows you to have up to ten phone numbers on one account. This is A VERY COOL THING. Run a business in Seattle but want people who live in New York, LA and Atlanta to make a local call? Just add three numbers to your account. Live in Britain and have university child doing a year abroad in the USA? Just give them a UK number and their friends can make local calls to reach them in the USA. Each number costs 30 euros for the entire year. You can have numbers in up to six countries subject to some restrictions. Skype is negotiating to add more countries.

SkypeIn and SkypeOut are not perfect. Given that most calls today are made with cell or mobile phones that are far from perfect, Skype compares well. The best quality calls occur when using pure Skype from computer-to-computer. Normal phone calls restrict the audio bandwidth and cut out some of the sound qualities of a persons voice. Not so for Skype. In fact you hear so much in a Skype call that it sometimes takes a few calls to get used to the new system.

Next best quality comes from Skype calls between a computer and a telephone land line. The worst quality comes when a mobile or cell phone is used. Given the amount of WiFi and Hotspot activity, it is common to have two or more radios involved in a call - a WiFi at the computer end and a cell at the other (see figure 4). This can lead to the familiar "can you hear me now" dialog but it is not worse than regular cell traffic.

Skype claims to have about 56 million users and you can monitor the number of people connected to the service at any given time. So-far I've seen approximately 5 million users at the same time.

For information about headsets and other ways to use Skype see our article on headsets (coming soon)

(draft article, Copyright 29 September 2005). Revised 07 December 2005.