NETWORK WORLD NEWSLETTER: STEVE TAYLOR AND LARRY HETTICK ON 
CONVERGENCE
10/04/04
Today's focus:  Skype moves from P2P to P2PSTN

Dear [EMAIL PROTECTED],

In this issue:

* Skype enables calling between PC and PSTN-connected phones
* Links related to Convergence
* Featured reader resource
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Today's focus:  Skype moves from P2P to P2PSTN

By Steve Taylor and Larry Hettick

Over the past few months, we've been contrasting the 
capabilities of various messaging services. We found that AOL 
Instant Messenger, Windows Messenger and Skype each had 
sufficient strengths and weaknesses to make it impossible to 
declare a clear winner. But Skype, which already had arguably 
the easiest-to-use "click to talk" capabilities, recently upped 
the ante considerably by offering gateway services to the PSTN 
for most of the world.

PC-to-PC calls have always been available with Skype at no 
charge. With the PC-to-PSTN option, Skype's pricing structure is 
set such that calls from a PC to many countries in North 
America, Western Europe and Australia are all the same fee per 
minute. Since the pricing is in Euros, we'll explain.

Calling credits are purchased in increments of 10, 25, or 50 
Euros. Then the calls are charged on a per-Eurocent basis. For 
instance, calls to landlines in the continental U.S., Canada, 
Australia, France, the U.K., and several other countries are 1.7 
Eurocents per minute. There's no discount for calling within 
your home country. Using a conversion rate of 1.233 U.S. dollars 
per Euro, this is about 2.1 cents per minute.

For domestic calling within the U.S., this is good, but not 
earth-shaking. It's important to note that the rates to a 
country are the same regardless of whether you're in that 
country or not. So the rate of 2.1 cents per minute to the U.S. 
is a much better deal when calling to California from France 
than it is when calling from across the country, across the 
state, or across the street. Also, the flat rate for calls, say, 
between France and the U.S. is even more attractive for calls 
_to_ the U.S. than for calls _from_ the U.S. because the price 
for PSTN calls is generally much more expensive for calls to the 
U.S. from Europe than for the same call from the U.S.

For international calling, this can be extremely attractive. For 
instance, this week Larry is traveling in Europe. Steve called 
Larry at his hotel in Paris, and they talked for a little over 
six minutes for 15 cents. On another occasion, Steve talked to 
an associate in the Netherlands for 15 minutes for 32 cents. And 
while the call quality was not perfect, it was certainly 
acceptable.

Next time we'll look at some of the details of this service.

RELATED EDITORIAL LINKS

Skype rates
http://www.skype.com/products/skypeout/rates/

Currency conversion
http://www.xe.com/ucc/

Cisco deals kick VoIP market into high gear
Network World, 10/04/04
http://www.nwfusion.com/news/2004/100404ciscovoip.html

3Com, Toshiba launch convergence gear
Network World, 10/04/04
http://www.nwfusion.com/news/2004/100404iptelexpo.html
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To contact: Steve Taylor and Larry Hettick

Steve Taylor is President of Distributed Networking Associates 
and Publisher/Editor-in-Chief of Webtorials.Com. For more 
detailed information on most of the topics discussed in this 
newsletter, connect to Webtorials.Com 
<http://www.webtorials.com/>, the first Web site dedicated 
exclusively to market studies and technology tutorials in the 
Broadband Packet areas of Frame Relay, ATM, and IP.  He can be 
reached at <mailto:[EMAIL PROTECTED]> 

Larry Hettick an industry veteran with over 20 years of 
experience in voice and data.  He is currently Vice President 
for Wireline Solutions at Current Analysis, the leading 
competitive response solutions company. He can be reached at 
<mailto:[EMAIL PROTECTED]> 
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