Skype Offers New Wireless Phones
Barry Levine, mobiletechtoday.com

http://news.yahoo.com/s/nf/20060721/bs_nf/44761

Skype, the voice-over-Internet company, is now directly offering mobile 
phones to go with its free Internet calling. The company introduced four 
new Skype-compatible, WiFi handsets. These are the first phones directly 
from Skype.

The phones are being manufactured by four different companies: Belkin, 
Edge-Core, Netgear and SMC. They operate when in the presence of a WiFi 
hotspot, do not require a computer connection, and automatically 
synchronize with a Skype account. The phones also include several Skype 
features, such as enabling the user to take Skype Contacts with them and 
see who is available to talk.

The phones are expected to be available in this quarter, and will be 
sold directly from Skype online. Prices range from $189 to $300.

Dual-Mode Phones

Some industry observers see this development as leading to a wide 
variety of WiFi phones. "We're going to see improvements in quality, 
types and ease of use for these kinds of phones," said Will Stofega, an 
analyst with technology research firm IDC.

He said the market may offer more choices of dual-mode phones, with both 
WiFi/VOIP and cellular service. "There are some dual-mode phones 
currently," he said, "but they're expensive." It would be at least 
another year, he said, before more reasonably-priced dual-mode phones 
are available.

Stofega said Skype-compatible WiFi phones, other kinds of WiFi phones 
and dual-mode phones might continue to co-exist with cell phones for the 
indefinite future. "It's rarely either-or," he said. "You might want to 
carry your Skype WiFi phone while you're traveling, to save money," he 
said, "but you might want to keep your regular cell for other times."

WiFi Market Booming

The WiFi phone market is booming. A recent Infonetics Research report 
said the market has increased by 116% between 2004 and 2005 to about 
$125 million. There are other Skype-compatible WiFi phones, such as one 
from Linksys, as well as non-compatible WiFi phones.

Skype's competition in the VOIP market is heating up as well, and a tech 
blog, VOIPWIKI BLOG, recently reported that Skype-compatible software 
has been cloned.

Skype offers free calling to any user in the world who is connected to a 
computer or a Skype WiFi phone, with an additional fee required to talk 
to landline phones or mobile phones. In May, Skype announced that any 
calls within the U.S. and Canada, to any kind of phone, would be free.


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