Skype In a Nutshell
EBay is planning to separate its ownership in Skype via an initial public offering soon. The real question, though, is “what is Skype?” Often mentioned but rarely understood, Skype is:
“a piece of software that lets people make calls and hold videoconferences over the Internet…
…The program, which routes calls over the Internet rather than traditional phone networks, gained global popularity by being among the first to offer high-quality calls for free, said Allen Weiner, an analyst at Gartner Inc. in Scottsdale, Arizona.
Users install the Skype software on their computers and use a headset or Web cam to chat with others. Calling from one computer to another is free. Customers pay per-minute fees when they call mobile phones or regular home phones. Skype also charges for features such as voice mail and text messages.” 1
If you have to ask what Skype is, then it’s probably not for you. It’s an extremely affordable way to make phone calls, but has several limitations (no emergency calls, etc.) and often relies on other technologies. In other words, it’s not as simple as putting your cell phone in your pocket. Skype is now available on the iPhone, but if you already have the iPhone, then you are already paying for a cellphone package, so the savings are minimal. For most non-techie users, think of Skype as a potential complement to your phone service rather than a replacement, and necessary only if you make frequent international (or other expensive) calls.
Read on:
Bloomberg.com – EBay Plans Skype IPO to End ‘Marriage Made in Hell’
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