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What is Skype?

According to the Skype FAQ:

Skype is a free program that uses the latest P2P (cutting edge p2p technology) technology to bring affordable and high-quality voice communications to people all over the world.

A simpler and more exact definition would be:

Skype is an Internet telephony or Voice-over-IP (VoIP) service provider that offers free calling between computers and low-cost calling to regular telephones that aren’t connected to the Internet

How does it work?

When you use software downloaded from Skype, you can connect to other Skype users so that you can talk and chat.  Similar to Yahoo/MSN Messenger.

Behind the software however, is a different matter:

If Skype cannot make a direct connection from one user to the other, it may elicit one of its users who has the Skype application loaded to become a supernode and relay the call.Don’t fret however, as the calls are encrypted end-to-end using 256-bit AES (Advanced Encryption Standard) encryption, which is nearly impossible to hack.

But you don’t really need to know that, do you now?

How does Skype compare to Yahoo/MSN Messenger?

As a techie, I use Windows, Mac and Linux.  Yahoo/MSN Messenger has built-in voice chat features, but this mainly works in Windows.  I work quite regularly on my Mac and found it quite annoying to switch to my Windows PC just so that I could verbally chat to somebody on Yahoo.  With Skype, I can be on either my Mac or PC and it just plain works!

Secondly, I’ve tested Skype at work, in internet cafes, in friends’ homes, i.e. anywhere with a broadband connection and it works beautifully without a single hitch.  With Yahoo/MSN Messenger, I sometimes get “firewall error” or “connection failure” messages.

The constant echoes and lag is a common phenomena with Yahoo voice chat. The audio quality you get from using Skype is superb!  Other programs just can’t compete!

Apart from that, Skype is also an instant messaging program where you can send and receive files and text messages in real time.

How much is it?

*drum roll* It’s free for personal use.

Really? So how do they make money from it?

Some people feel more at home and prefer making calls using a “proper” handset.  Skype sells a variety of phones that connect to your PC and allow you to make calls from it.  Since the recent release of version 2.0, they now sell a variety of webcams and other accessories as well, including their own line of clothing merchandise.

Where Skype generate most of their profit is through their SkypeOut service; their premium offering that allows you to make calls to regular landlines or mobile phones anywhere in the world.

Unlike international long-distance calls made from conventional telephones, which are traditionally rated according to the relative distance between countries, SkypeOut bills all calls according to the level of popularity of calls made from and to a given country, and access charges such as those to mobile phones. This rating method is used due to the fact that calls are rated the same regardless of place of origin.

The Global Rate which is the one used for many countries, including nearly all First World countries, is currently 1.7 euro cents (€0.017) per minute.  You would have to top up your account with credits before being able to use this service, which you can purchase via credit card, personal cheque, money order or PayPal.  The minimum deposit if €10, which expires after 180 days of inactivity.  I must say that the call rates are one of the most cheapest I have come across.

Skype now also offers SkypeIn where you get your own regular phone number.  Sounds like nothing special? Well the number can be a local number in the UK, USA, France, Hong Kong, Denmark, Finland, Germany, Sweden, Estonia, Switzerland and Poland (and growing).  So say if your friends are in Sweden and you’re in the UK, you can buy a SkypeIn Number in Sweden and your friends would dial a local number to call you from their phones, which in turn leads to a cheap or maybe even free phone call. You can have as many SkypeIn numbers as you like on the same account, as long as you are willing to fork out €10 for a three-month subscription or €30 for twelve months.

Their third premium offering is Skype Voicemail.  This allows you to not only receive voice messages when you’re on another call, but send them to anyone on Skype as well.  This comes automatically bundled with SkypeIn, or you can purchase it seperately.

Oh, and did you know that in September 2005, eBay acquired Skype for a cool US$2.6bn?

So why should I care?

Haven’t you been reading?  If you want to call your friends or loved ones, without paying the expenses of the long distance phone bills, get Skype.  This means of communication is already being used by broadband users worldwide, including yours truly.

Is there anything Skype can’t do?

Unfortunately yes.  Skype cannot make emergency (911, 999,112, 211) calls .  It is not a replacement for your ordinary phone and CANNOT be used for emergency calling. And yes, you would have to make your own coffee.

Ok I’m ready to be Skyped!

Remember, PC-to-PC calls are free! So what are you waiting for?

Download Skype from: www.skype.com.

Registration is free and will only take  few seconds.

That’s it. You weren’t expecting a review, were you?