Skypes or should it be Yipes?

My brother called me from Vancouver on my phone but thorouh a software company called skypes (www.skypes.com). Shortly thereafter my daughter called me from Nanaimo with "great news" about Skypes and "we should all sign up cause it was free". So this weekend I went to Skyes and downloaded its free software. It works however I had to do a few things first.

Skypes, and its technology, have been around for a few years but the company has come to prominence through its acquisition by E-bay at for 2.6 billion plus an additional 1.5 billion if Skype hits certain performance targets. A big price for a company that has only generated $60 million in revenue and yet to show a profit. However Microsoft, Yahoo and Google were also interested in the company but E-bay bid highest.

Skype uses VOIP (Voice over Internet protocol) to carry telephone signals. Their software allows people to make free calls to other Skype users over the Internet, and very cheap calls to traditional telephones—all of which spells trouble for incumbent telecoms operators. Skype technology is easy to use just "click to call".

The first assumption Skyes makes is that you have a broad band Internet connection (I am not sure how it will work on dial up),and you have a integrated head set with ears phones and mickrophone. I had to buy one, around $20 but you can get them for less. The installation was easy once the software was downloaded. The nest step was to register my name and user ID. That was easy. Than I added my brother and a friend to my "phone list"; dialed up my friend, and could hear him clearly but I wasn't able to transmit my voice back to him. We had to use the "chat" option to talk: he talked I listened but was unable to "talk back"; hmmm. Had to go to my control panel, click on my sound device and turn my microphone on. Called my friend back and was able both to hear him clearly and talk back. The sound quality was good but it has a faint echo and slight tinny sound otherwise worked find. My friend lauded his use of it being able to talk to someone in Chicago and Lampoon at the same time, as clearly as he was talking to me.

Skypes also has additional services: SkypeOut to call friends on land lines and Mobiles (0.03/minute for popular destinations to 0.68/minute for more exotic places e.g. Greenland). SkypeIn, (plus voice mail) your own personal phone number worldwide for $5 / month.