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Rejected by Skype
I didn’t make the grade. They’re not going to let me play with “Skype for SIP”.
I guess I’ll find a way to make it through another day, somehow.
Skype for iPhone challenged by limitations
Apple’s decision to not allow “background” apps and AT&T’s decison to not allow voice calls over their network, severely limit the utility of Skype’s iPhone application.
No calls unless you can get Wifi.
In general, incoming calls are impractical, even if you’re on wifi, since the Skype app has to be the one and only active app in order to receive calls. If you’re doing something else on the phone, like browsing or checking email (or twitter), you cannot receive calls.
In test calls, I found the app unreliable even when all the conditions are met. Trying to call the iPhone Skype from a PC, the calling side just continued to ring, even after I answered the call on the iPhone. The Skype for iPhone app then seemed “frozen” where I couldn’t end the call or do anything except hit the big button.
When calls did connect (requires the iPhone to be connected via Wi-fi), the call quality was fine.
Not being able to make Skype calls except when connected to wi-fi is a pretty big limitation for me. Ironically, when a friend had to call their wife on Skype in Costa Rica recently, I had to let them use PhoneGnome and OpenSky on my iPhone to do so, because that was the only combination that worked on iPhone without wifi.
Amen to Michael Robertson in note to Skype
Andy refers us to a letter Michael Robertson (CEO of Gizmo) sent to Chris Libertelli at Skype. In part, it says:
[in regards to Skype demanding that wireless companies open their networks], Skype’s actions do not mirror their words to the commission which diminishes credibility for Skype to demand openness.
…
It appears that when it is convenient for Skype’s business objectives Skype waves the flag of openness, at the same time conveniently ignoring competitors requests for openness.
Here, here. You can read the entire letter over at Andy’s site.
Skype’s future
The Financial Times has stirred up the blogs with their story regarding statements by Ebay CEO John Donahoe hinting that Skype may be sold off if they can’t find “synergies”. Gigaom suggests that a divestment is the right thing to do.
You may recall that the original “synergy” argument used to justify the phenomenal valuation was geographical, that Ebay was dominant in the U.S., but not so outside the US, while Skype was strong outside the U.S. but not so much within the U.S. I think Ebay mostly cared about the impact Skype could have on eBay’s market share of its auction business outside the U.S. (but they did give lip service to how eBay would also help Skype become more popular in the U.S.) In 2005, the brass ring was China - but ultimately Skype didn’t help and Ebay had to shut down in China and partner with a competitor. Valleywag said of this “Skype’s failure to strengthen eBay in China, more than anything, is why the company had to take a writeoff.”
I reviewed the progress towards Ebay’s goals for Skype fifteen months ago in the post “Skype luster fading” and concluded then:
At some point, for this deal to pay off, 2+2 has to equal a lot more then 4, and at this point, that’s not happening.
I stand by that statement today. Even with Skype’s healthy growth and real revenue, the “synergies” are not there and I think the CEO’s comments are preping Wall Street for a future sell-off of the Skype division.
The question then becomes, who will be interested, and at what price? Skype is a healthy business. By “normal” valuation, it is a half-billion dollar company, but I’m sure someone will pay a lot more than that for it. Everyone is pointing at Google, but I’m not sure it is a good fit for them - they would have to swallow some Gtalk pride and they may not be willing to do that. A telco could buy it to shut it down. Nokia could buy it - that would be interesting. Stuart suggested Apple, but that isn’t going to happen (too much NIH at Apple). Who do you think should buy Skype and what will the price be?
