Skype for iPhone over 3G: An Industry Benchmark Game Changer for Skype

Late last night I reported over at Voice On The Web on the long anticipated, yet unexpected and previously unannounced (by Skype) release of Skype for iPhone 2.0. I raised some issues, especially in light of the message related to charging a “small fee” for this carrier-agnostic service after September 1, 2010. Let’s just say that there’s been more than a little discussion on this point in the blogosphere.

However, one call between two iPhones using Skype for iPhone 2.0 over 3G basically said “fees be dammed, this is a game changer!” Why? Skype for iPhone 2.0 also invokes Skype’s SILK codec on the end point device.

This morning I had 3G calls from my guest quarters in Ottawa with contacts in the U.K., Ireland and California. The first thing noticed on all these calls is that these were not typical mobile phone calls when it comes to voice quality. No distortions, no questions as to “what did you say?”, no “can you please repeat that” because of audio bandwidth limitations of the mobile voice channel. These were crystal clear voice calls; the other party was effectively “in my head” when it came to listening to them. Let me repeat — you have to experience it to fully appreciate it – these calls had a crystal clear voice quality that neither I nor my called Contacts had ever experienced on mobile phones previously.

With Skype for iPhone 2.0, Skype has raised the bar for mobile phone call quality.

• For wireless carriers: Once users experience it they will be asking why the carriers are not supporting Skype superwideband audio.This exposes the true downside of Skype mobile on Verizon, where use of the carrier  voice channel limits audio bandwidth to standard <4 KHz audio bandwidth and users experience somewhat distorted voice. Verizon customers lose out (i) because of no WiFi access and (ii) because their Skype client does not use VoIP on the device itself.
• On the other hand Rogers, Bell, Telus, AT&T (in U.S. and Canada) and all GSM/HSPA+ carriers worldwide who sell iPhone can now offer their customers this level of voice quality.
• For smartphone vendors: RIM, Android, Palm and Windows Mobile 7 are now challenged to deliver the same level of voice quality on their platforms. For instance this becomes a most significant additional reason RIM needs to work with Skype to launch a Skype for BlackBerry as Skype’s royalty-free SILK codec becomes a significant enterprise productivity enhancer. And the same demands will be made by users of the other vendors’ devices.
• It provides real time customer experience back up for Skype’s case to establish SILK as an IETF industry standard for HD Voice. Skype’s several million users with Skype for iPhone will suddenly be experiencing the quality and demanding that this become an industry standard.
• For WiFi access: Skype for iPhone over WiFi also benefits from support of the SILK codec. During recent trips to Europe I found myself using Skype for iPhone and Truphone over WiFi access points, not simply because of cost but also because I experienced situations where 3G or a landline simply were not available. It builds the case for WiFi as the stealth wireless carrier.
• Impact for LTE (a 4G data standard): There has been some movement in the carrier world to establish a Voice over LTE standard involving the languishing IMS standards that are failing to achieve significant adoption. However, Skype has just demonstrated that they already have the technology to make Skype (and voice calling in general) a reality without the need for any IMS support. Carriers need to rethink their support for VoLTE. Combine net neutrality and Skype’s demonstration today of using voice over data – there is no need for any special standard other than today’s legacy carriers attempting to justify their existence beyond simply being a data “pipe” utility.

Bottom line: Skype is fundamentally a communications software company. With the support of SILK in a smartphone application that runs over both 3G and WiFi, calling costs become almost secondary to an exceptional end user experience with voice quality on mobile devices.

SILK has now become not only a benchmark but also a key communications infrastructure element. End users will pay for a quality experience, especially when it impacts business productivity. Both wireless carriers and smartphone vendors need to rush to ensure they have incorporated Skype’s SILK technology into their offerings. Otherwise the iPhone (iPad and iPod Touch) have one more key feature that sets them apart from the remainder of the smartphone users.

Update: fellow voyces.com blogger Alec Saunders has several additional points to make in Skype’s “small fee” is noise guys:

There’s no point in getting your knickers in a twist over the fee.  Skype needs to make money, like any other business, and the fact that they’re charging for this service is irrelevant to the larger story it represents.

My only other question: how did Skype miss out on using social networking and their marketing communications channels to give this a “heads up”? Its awareness has solely become known through third party Twitter messages and third party blogs. And allowed speculative distortion of the true message that needs to get out there!

I’ll be adding a recording of one of my calls to a later Voice On The Web post (simply because I already have  a WordPress plugin for handling MP3 files). And I’ll be reporting on other issues, such as battery drain.

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