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VoIP Toolkit

The danger in Skype's plans

Ben Charny CNET News.com

Published: 04 Apr 2005 16:55 BST

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Some backers of SIP have criticised Skype for potentially splitting the Net phone industry, undermining standards and interoperability — a threat that would become all the more acute should Skype's developer community take off.

Cannibalism — a gray market?
Although crucial for Skype's long-term prospects, courting developers is not without its risks.

Skype is beginning to roll out its own premium services, and it might face competition from similar products seeded by its developer program. For example, Skype is testing a voice mail system that it wants to sell in the future. Yet there are already at least a half-dozen free Skype voice mail add-ons available for download on the Net.

Skype has two other paid services up and running or in tests that might similarly come under attack. SkypeOut, launched last July, lets subscribers make calls from the Internet to the traditional phone network at a rate of about 1 penny per minute. It has signed up 1.1 million customers so far. Skype is also testing a service dubbed SkypeIn that lets subscribers obtain ordinary telephone numbers and take incoming calls, for a flat fee covering three months or a year.

Skype's Larabee downplayed the risk of those services losing sales to products contrived by developers.

"Skype voice mail is a premium product, and we are aware that other developers are offering alternative recording options," she said. "Skype is not concerned that a non-commercial developer could offer a competitor [to its premium services]".

Skype also faces serious challenges recruiting and retaining developers.

Since developers must pay Skype to sell products based on its source code, it could face a long-term disadvantage against SIP if its market share begins to slip.

Furthermore, because Skype is a relatively small company with not much more than 100 employees, developer support is a costly luxury. Some developers have complained they were basically left on their own to navigate complicated licensing contracts and technical issues, leaving it unclear whether developers are allowed to profit and under what conditions.

"It's long and complex," wrote Skype blogger Stuart Henshall of the company's source code agreement.

Some Skype developers have taken matters into their own hands, building their own support networks and laying plans to lobby Skype for a greater role in administering the developer community.

That's the idea behind SummitCircle, a popular Web site run by Louis-Philip LeNir. LeNir wants to serve as the developer community's collective voice and chief organiser; in effect serve in the same capacity as a town mayor.

"As things continue to grow, I expect to approach Skype and ask them if I can help organise the Skype ecosystem that's forming around them," LeNir said in an interview, promising that his first official duty would be to hold Skype's first developer conference. "Even loosely organised, we can provide a lot of value to Skype users."

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