Version: 2008
January 8, 2009 3:57 PM PST

Skype thrives amid tough economy

by Marguerite Reardon
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LAS VEGAS--The sinking economy has actually been a good thing for Internet telephony service Skype.

Scott Durchslag, the company's chief operating officer, told reporters during a press conference here at the Consumer Electronics Show that Skype is actually seeing a surge in new users as people look for ways to cut their phone bills.

"We are seeing consumer take-up of Skype accelerating because people feel they can get value and quality without making a huge trade off," he said. "And we're seeing a whole new opportunity in the business market, as companies that I'd never have thought would be a target for Skype are pro-actively coming to us and asking for a solution."

Skype, which is owned by eBay, offers downloadable software that allows people to make free calls to other Skype users and low-cost calls to cell phones and regular phones. The service also offers free video chat. The company boasts it now has over 370 million registered users. It's been adding about 30 million subscribers a quarter, Durchslag said. And these users are making lots of phones calls. Today, about 8 percent of the world's voice minutes originate from a Skype call, he said.

All told, Durchslag said Skype has been growing about 50 percent compared to the previous year in almost every metric from minutes used to new subscribers to revenues. He also said the company just had its seventh straight quarter of profitability.

All this is happening while other technology companies are hunkering down for a long, dark recession. Meanwhile, Skype is looking to expand its services and address new markets. In particular, the company sees opportunity to develop special services for the business market, offer more video , and expand its presence on mobile phones.

As part of this effort, the company announced here that an enhanced version of its software Skype 4.0, which drastically improves the quality of voice and video, will finally come out of beta in February. It also announced it will be offering its Skype software for mobile devices preloaded on Google Android phones along with about 100 Java-enabled handsets, including some sold in the U.S.

Sadly, Skype is still not available for Apple's iPhone, but Durchslag said an iPhone version will be available in the App Store, someday. But exactly when is still up in the air.

"We have to make sure the call quality is there and the application works really well before we can announce the software for any device," he said in an interview after the press conference. "But we will have something for the iPhone as soon as it's perfect."

January 7, 2009 5:01 AM PST

Ooma rings in new year with Telo VoIP system

by David Carnoy
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The Ooma Telo doesn't have a price tag yet.

(Credit: Ooma)

When I met with Ooma representatives last month, I got a sneak peek at its next-generation phone system, the Telo, which combines DECT 6.0 cordless-phone technology with Internet-based (VoIP) calling. Well, Ooma officially unveiled the Telo at CES, and while no price has been announced, the it will arrive sometime in the first half of 2009, according to the company.

Ooma's claim to fame is that it currently sells a VoIP phone system that lets you make free domestic U.S. calls and low-priced international calls. (In Amazon's database, the product is in fact called the Ooma Core VoIP Phone System with No Monthly Phone Service Bills). However, that system doesn't include any handsets, while the new Telo does--and you can expand the system to up to six handsets. (You can also connect a standard phone line if you so choose).

The Telo improves upon the feature set of the original system, as well as the call quality. Ooma representatives are highlighting how you can have calls from your cell phone redirected to the Telo.

Rich Buchanan, Ooma's Chief Executive Officer, says, "Simply put, Telo sounds better, connects better, and works better than any traditional phone or VoIP service available today. Telo represents the necessary evolution of communication in the home and helps combine the home phone and cell phone so you can enjoy the benefits of both without any compromises."

We look forward to trying this one out when it arrives later this year. In the meantime, we just got the original Ooma system in house and will be testing it after CES.

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Best of CES and
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Since 2006, CNET has presented the Best of CES Awards, given to the top product in 10 categories as well as one coveted Best in Show award. See the gadgets that topped our list for this year, and find out the People's Voice winner, decided by more than 10,000 member votes.

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Each year, CNET, in partnership with the Consumer Electronics Association, produces the Best of CES awards at the International Consumer Electronics Show. The CNET editorial team recognizes the best new products at the show with awards in 10 categories, an overall Best of Show award, and the People's Voice award, which is selected by CNET's online audience.