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The Skype Phone & Free Skyping:

Video Action Keeps Expanding: In addition to service launches on the video communications front, (Skype, SightSpeed), it was a week when we learned where Skype's founders, Niklas Zennstrom and Jaanus Friis, may be spending some of their eBay-generated wealth. (Keep in mind that Niklas and Jaanus had VC partners with whom they shared probably a significant portion of that $2.6B sale price.) Phil has commented on their Venice Project, a forthcoming video play first revealed in a Business Week story. Om thinks it does not bode well from an eBay investor's point of view:

Whatever the case might be, this doesn't look good from an eBay investor's perspective.They spent $2.6 billion (and change) on Skype, and the two main guys are busy doing other projects."

My take, having worked with many technology-based enterprises transitioning from startup to a sustainable expanding business, is that eBay has let Niklas and Jaanus go back to doing what they are best at - entrepreneurship - and have let their more operationally experienced managers take responsibility for growing Skype from an emerging ~$100 million annual revenue enterprise to the multi-billion per year revenues required to justify a $2.6 billion purchase price. As long as Niklas and Jaanus can input their suggestions and viewpoints into management decisions and do not go to a competitor, I would not lose any sweat as an investor over this situation.

Will Niklas Now Visit The U.S.? Towards the end of the week we learn that Niklas and Jaanus have "reached into their own pockets to help settle a lawsuit brought by the music and movie industries." Om speculates on a link between settling the lawsuit and getting the Venice Project launched; No further word on the Streamcast or Net2Phone lawsuits. Will be interesting to see if Jeff Pulver can now convince Niklas to attend his Fall VON show; to date Niklas' only North American appearances have been at VON Canada.

WiFi Phone for Skype - Who Are The Real Players Going To Be?: While SMC announced availability of their forthcoming WiFi Phone for Skype at a MSRP of $199, Om uncovers a report saying that the launch of the NetGear version "has been pushed out again and because of the delays, NETGEAR has now lost its exclusive partnership with Skype." If I understand the Certification Program correctly, it sets bars for Skype Certification; however, I have never heard that "exclusive partnerships" are available with Skype. But NETGEAR certainly generated high expectations since their big press launch at CES in January. From the recent Skype press release, it seems like Skype has been working with four hardware partners on WiFi Phones for Skype.

Skype Toolbars Update: Skype finally issued a press release for the complete range of Skype Toolbars; we reported on them when the new releases actually became available at the beginning of July. A hotfix release of the Skype Office Toolbar this week has added support for Visio, Access and Project; the beauty of this particular Toolbar is the ability to transfer the file you are actually working on via Skype's File Transfer in a single step while the file remains open.

SMC-Skype WiFi Phone works in Australia

Readers' opinions on Skype products are best. The new SMC Networks Wi-Fi phone certainly gave my down under Skype buddy Rick Gainsmith a big lift last night. Christmas in Australia came early.

Rick and his family operate one of the most prestigious home furniture stores in Australia. They have been using Skype in their business since almost day one. (Reminder: Skype's 3rd birthday is less than 27 days away... what gift will you give Skype?) Rick buys everything Skype so I value his feedback on the new SMC Networks Wi-Fi Phone and asked him to share his experience with our Skype Journal readers. Here is what he had to say...

I've been wanting a easier method to make Skype calls for a along time. Have tried Wireless adapters, Cyberphone K, SkypePhone.com Phones, all have there good points but never quiet easy or reliable enough for my wife and I to use as a day to day telephone.

The SMC Wi Fi phone I picked up today could be the solution we have been looking for. Out of the box you get the wi fi b/g compatible phone, gloss white plastic cover, color screen and all the keys you would find on a typical mobile phone. As well as the phone you get basic hands free which plugs into the bottom of the phone, manual and Documentation CD and a printed Quick Start Guide.

When you turn the phone on you select your language, only English was an option, then an agreement that you understand Skype is not a replacement for your ordinary phone as it does not make emergency calls.

It then searches for a network; if your network has security you can manually enter the Network Key via the number keys on the phone.

This is good if you're logging onto a network which you have the security details however for hotspots, etc., requiring web based authentication, this phone isn't going to work.

Signing in process is just as easy; entering your username and password then the phone makes the usual logged on sound the pc software makes.

As soon as I was logged on the phone said there was a later version of the software and click ok to install (phone came with version 0.9.0.11), this always brought up an error "The download could not be completed. Please try again."

Nevertheless the current software is fantastic, extremely easy to use, contacts, forward settings, etc., all downloaded to the phone, no need entering all your contacts again. Turn the phone on and off and it remembers your preferred networks and their settings. Great! Contacts are one button away and are sorted from online, SkypeOut, and offline. For dialing SkypeOut numbers without entering as a contact just dial the number directly from the main menu as you work with a mobile phone.

Menu system is very simple and easy to use with pretty much all the configuration options you would find on the pc version.

Plenty of network options, including selecting your own incoming port number.

Call quality within 20 meters of a router is great, no difference than the Cyberphone K, distance calls I will try as time goes on, but so far, it's the solution we have been waiting for!