Wednesday, May 31, 2006

Free is good: how to make international calls at no cost

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“There is no such thing as a free lunch!” This was true until the development of the Internet. There is incredible pressure to offer free services to the consumer. Numerous companies offer free services on the Internet. For instance, Google.com offers free G-mail where each user receives 1 gigabyte of e-mail storage. G-mail will even sort the e-mail automatically based on content and address. Yahoo! offers free stock quotes and investment tools. Craigslist.org offers free classifieds where people sell everything under the sun at no cost. In California, Craigstlist followers are many, and people are selling cars, homes, and services to other local Craigslist users. Medrounds.org offers narrated surgical videos and educational materials at no cost for patients, students, and physicians. Blogger.com offers free self-publishing software for world-wide pontification. Google is the leader in free services on the Internet; thus, it was not a surprise when Google purchased Pyra Labs, the creator of Blogger.com.

One of my favorite free Internet services is Skype.com. Skype offers VoIP services for free. VoIP is an acronym for “voice over internet protocol”. VoIP uses the Internet to transmit voice and video in digital format. Because the world is connected by the World Wide Web, VoIP facilitates communication via a computer-to-computer network. When calling a colleague who also uses Skype, there is no charge. For those who must still connect with traditional phone numbers or cell phones, there is a nominal rate that is cheaper than traditional telephone service providers. Up to five individuals can participate in a VoIP conference using Skype. While conferencing, links can be sent using a chat window and files can be distributed for everyone to view. In addition, video conferencing is available with the latest version. I have conducted meetings with individuals located in Beijing, Helinksi, New Zealand, and Paris via Skype.

Using a Bluetooth wireless headset, I can talk to people around the world for free. For those who prefer a device resembling a telephone, there are USB phones that are compatible with Skype. What about people who want to call your computer? A local telephone number can be purchased for about $30 per year. A Skype local telephone number allows users to receive voice mail and to receive calls from traditional telephone services. While traveling, friends, family, and colleagues can keep in touch by dialing a local telephone number, free of charge.

Skype is growing at an exponential rate with over 247 million downloads within the last 3 years. Because of its growth and user base, eBay acquired Skype for $2.6 billion in cash. For a service that people mainly use for free, this is rather an expensive purchase. However, controlling Internet communications for eBay may fit nicely with its e-commerce and financial services dominance on the Internet.

What are the disadvantages associated with a new communication tool like VoIP? A broadband Internet connection is needed for clarity. Skype does not offer 9-1-1 service. Video conferencing needs improvement because the video and audio are choppy. When calling a traditional telephone number or cell phone, it costs about two cents per minute for domestic calls and higher for international calls. While these disadvantages are minor, with increasing availability of broadband Internet and increasing numbers of users converting to Skype, we will be able to connect with friends, family, and colleagues for free.

I am waiting for Skype software on my Blackberry so I can avoid using my cell phone minutes!

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