Skype is one of the largest VoIP providers in the world. What follows is a balanced report on the pros and cons of choosing Skype’s VoIP solution.

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Designed by the creative geniuses behind the controversial music sharing program Kazaa, Skype has quickly become one of the most popular VoIP services available today. Skype allows users to make free, yes free, telephone calls via your broadband connection to other Skype users. But that is not to say, that every aspect of the program is quite so wonderful.

System Setup

Skype has grown in popularity specifically because it offers users the opportunity to make completely free long distance calls through its peer-to-peer network. Essentially the way the program works, is that users download the program, create a personal ID, and dial, much as you would a regular phone your friend’s phone number. Skype has done an excellent job in creating a program that is very easy to download and get started with. Within a minute or two you can begin conversing with friends and family located across the country.

Making the transition from an occasional diversion, to a real telephone replacement, however, is a bit more complex. The free program Skype, as you would imagine, does not come with a headset or telephone replacement. So, if you don’t have one of these on hand, you will certainly need to buy one. Using the default microphone and speakers built in to most computers was cumbersome and we found ourselves asking “What?” far too often to make this a reliable telephone replacement. So, the prospect of a completely “free” telephone service is a bit of a misnomer for most computer users. Using two versions of generic headsets bought at local electronics stores, however, really sured up the service. Communication was clear and reliable, equivalent to cell phone quality.

Another problem with Skype is that it relies upon a very fast connection. The company is quite clear that dial-up service will be virtually impossible to communicate on. However, the limitations exist even beyond this. Upon testing, we found that communicating over a wireless connection was simply too slow to prevent delays. This reduced the effectiveness of the program from that of a telephone to something more akin to a walkie-talkie, where one person talks and has to wait for the other to finish before responding. But, just as with the previous limitation, a clear remedy is available. Once we wired up our computers to hard lines instead of wireless connections, the communication levels were once again quite excellent.

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Features

Skype differs from other major VoIP players insofar as it is designed more on the lines of an IM service that offers voice communication rather than a program designed to completely mimic traditional telephony. This means that it runs on a platform that allows for instant messaging, a convenient tool for those that want to send files across the internet while they are speaking. The service also comes with a host of other supported features like 3 and 4 way calling, call-waiting, voicemail, and customizable ringtones.

But while all of these features are added bonuses, the real standout feature of Skype is that it is free. Unlike competitors such as Vonage who charge for each and every call, Skype is so appealing precisely because it allows users to call other users completely for free. Now, that does not hold true for non Skype users. For those of your friends who have resisted the Skype craze, or who are located in another country, you will need to purchase pre-paid SkypeOut minutes. This system works much like a pre-paid calling card, in which the cost per minute is determined by pre-set rates. These costs range from just over a penny per minute for calls between North America and Western Europe, or North America and Australia, to over 25 cents per minute to more remote areas. On the whole, these rates are almost 50% cheaper than competitors like Vonage. 

Conclusion

So how does this all add up. The Skype program is fantastic for those that make lots of long-distance domestic calls to friends with solid internet connections. These calls are completely free, no matter how long you talk. But for those of us who are in a different situation, the appeal of Skype is somewhat lessened. The fact that Skype charges for each and every call that is made with someone who is not using Skype differs from telephone replacement VoIP services like Vonage. But because they avoid the set monthly fees, Skype is still the better deal if you make phone calls like this for under 500 minutes a month. It also is beneficial if a lot of the calls you make are international rather than simply long-distance domestic calls. But, if you are planning on using VoIP to talk to someone on the US west coast, while you are on the US east coast, and you plan to talk a lot, then it may make more sense to look elsewhere.

Pros: Offers free domestic long-distance calling to other Skype users. Has some of the cheapest international rates available anywhere. Offers safe, encrypted calling, with excellent quality. Local Number Portability (LNP) is available along with voice mail.

Cons: Requires a decent computer with a hard-wired DSL or Cable connection. Cannot communicate well wirelessly. No call forwarding, or 911 service.

Our rating: * * * * (out of 5)

The bottom line: If you make tons of long distance domestic calls or if you make less than 500 minutes of calls to non-Skype users, then Skype is the provider for you.

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