NY Times on VoIP, Skype Profile and the FBI

securitas writes "The New York Times Business section published a longish profile of P2P VoIP startup Skype, founded by the people that brought you P2P file-sharing client Kazaa. Previously the domain of geeks everywhere, this is significant if only because it seems to signal that VoIP is starting to garner mainstream consumer interest and serious business interest. The article discusses Vonage and a Daiwa Securities telecom report that says Skype 'is something to be scared of, and is probably set to become the biggest story of the year.' Critics dismiss it as hype. But Skype faces a potential court battle with the FBI. 'Because traffic over Skype is strongly encrypted and distributed over wide-ranging sources, it could hamper authorities' ability to wiretap.' An FBI spokesman says, '... it is something that we are looking into.' Of course last week's Minnesota federal court ruling that exempts VoIP from traditional telecom legislation doesn't hurt the case for VoIP. The text of the ruling is expected to be available this week. Read the previous Slashdot stories on Skype and the Vonage vs Minnesota case for some background."

Comments

I'm saying meteor...

[YanceyAI]

"We think the Skype offering (and whatever may follow it) is akin to a giant meteor hurtling on a collision course toward Earth," the report said.

Other analysts are more skeptical. Eventually, they say, Skype's growth will depend on customers who do not understand peer-to-peer networking or have computer headsets. Moreover, the program works best over broadband connections, which just 16 percent of Americans have at home, according to a May report from the Pew Research Center.

Hmmm. Nice to try to downplay it, but the music industry sure is in an uproar over something that is mostly only for broadband users who know how to use P2P file sharing...namely the swapping of mp3's...and popular music has a smaller base of interested parties. And I don't see that not having a $10 headset is going to cripple the popularity of this.

Everyone uses the phone.

Errr...Ok, Wait a second.

[Bowie J. Poag]

Written communication became popular, because it was an improvement over word of mouth. Anyone could learn how to do it. It was free at first, but as it caught on, people payed for the priveledge.

Telegraphy became popular, because it was an improvement over commication by postal mail. Anybody could set it up. At first, it was free, but soon people payed for the priveledge.

Telephones became popular, because it was an improvement over communication by telegraph--It circumvented the charges normally associated with communication by wire. And anybody could do it.

The internet became popular, because it was an improvement over communication by telephone. Relaying information from point to point over a public network was cheaper than calling long-distance, and anybody could do it. Soon, people began paying for the priveldge.

Given our own track record, what on earth makes you think your VoIP service is going to be free? Like any other service, infrastructure is paid for by those accessing it. The networks that make it happen don't build themselves, you know.

Its a novelty for now, sure, but 10-20 years from now, you're going to be doing the same thing you're doing now. Paying someone to communicate a message over their medium.

The idea that VoIP is going to remain a free-as-in-beer alternative to traditional phone networks is a pipe dream. Sure, it's a charmingly optimistic to think so, in a cute sort of pat-you-on-the-head sort of way, but..At the end of the day, the one who pays the piper calls the tune.