There a few notes floating around the ‘Net that Google is testing bits and pieces of Google Voice internally. Even rumors that a possible upgrade to GMail may include a Google Voice client popup –

The new feature will allow users to make voice calls over the Internet and it’s likely that it won’t be limited to Gmail. In April, TechCrunch reported that Google “built a Google Voice desktop application to make and receive calls” and that the application is tested internally. Google used technology from Gizmo5, a VoIP service acquired by Google last year.

For now, Google Voice’s integration with Gmail is not publicly available.

A Google Voice VoIP service with land line tie in? The consequences are rather formidable –

• Google probably becomes the instant largest VoIP phone company on the planet. Assuming that they tie this to every GMail account, that is in the cards by default. GMail outclasses Skype by at least an order of 2X.
• The paid for VoIP service collapses? Or the price points become inordinately cheap. Why pay for it if I can get if for free?
• Skype’s propietary signaling format bites them back. What has kept most folks with Skype is market size. If a larger player shows up with open protocols, it makes Skype’s technical decision problematic. That become a huge problem for them as they are now a start up again.
• The Skype-Verizon deal is toast.
• It makes the job of the folks trying to control the Internet that much harder. Hard to enforce net rules is they are precluded 1st Amend. speech provisions, which is what the FCC was supposed to guard in the first place.

As a technology this is not earth shaking, its just VoIP. But if Google follows their usual — free basic, paid premium scenarios — it is a massive realignment of the VoIP space as a business. It would also portend a serious challenge to the big three wireless carriers. A smart upstart could offer a unlimited data plan coupled with Android/GMail/Voice/SMS and blow their competitors voice/data plan pairings out of the water. (Hear me out there T-Mobile??)

This is a dark swan for telecom.

Linky

Update:

You must appreciate the remorse I have when I read this –

When Google acquired Gizmo5, a Skype competitor, in November Google Voice users rejoiced – presumably they’d be getting a much needed soft phone on the desktop for users to make and receive calls through Google Voice.

We confirmed that the application had been rewritten and was being tested internally at Google in April. Some Google employees continue to use the app, we’ve confirmed.

But don’t expect it to launch publicly any time soon, we’ve heard from multiple sources. Why? an internal religious debate about desktop software.

Google founders Larry Page and Sergey Brin don’t want Google to be in the business of creating software outside of the browser, say our sources. And that’s consistent with Google’s product launches over the last several years.

Of course it ignores the efforts that Google is putting into developing their own Chrome browser, Chrome operating system and Android operating system, as well as a variety of mobile apps – all are software that installs on computers or mobile devices.

But there may be a hard line when it comes to pure desktop apps like Google Voice. So the team has been sent back to the drawing board to try to make a workable soft phone that will work entirely within the browser using HTML 5.

So the upshot is, it ain’t gonna happen this year or next. Damn! Apparently part of a religious war internally. Personally I think this is a bad move on Google’s part. There is only so much you can do with Search. But with telephony, when you can do it big, there are all sorts of avenues where not only is search manifest in telephony use but it provides yet another source of revenue apart from search. Smart companies diversify income streams.

I need a scotch…..

Linky.

Update II :

Ok, so my scorecard was only half right! The upshot is, Google Voice is out of the Labs and into the wild! Wow. Integrated with Google Mail? Nope. I want that, but the fact that I can freely sign up for Google Voice without the invite is a good start.

Will be a busy weekend. Have a few clients that want this integrated into their websites. Loving it. The current release of GV won’t however put Google in the MaBell business however. It depends on an existing phone line to operate. But merely as a call director it has many uses for lots of people.

While we await the results of Google knitting together it’s Google Voice, Grand Central and Gizmo5 services into a single vocie and messaging platform, Skype is moving ahead to take market share with new super cheap rate plans.

Skype Wednesday confirmed new monthly call subscription plans that, according to Skype, bring down the costs of Skype-enabled Internet calls even further. In addition, according to one report, Skype has a long-sought group video chat function in the works that it plans to test as a public beta as early as next week.Skype users have been asking for customized subscription plans that reflect how often they use the service, according to the company. Under the new plans, users can preselect countries they want to call, what types of devices — mobile phones or landlines or both — they want to call, and then what subscription plan to buy into.

The new subscription plans cover 170 countries and will launch Thursday. According to Skype, the plans, which start at $1.09 a month and offer call rates as low as 1 cent per minute to any of the 170 countries, come in one-month, three-month and 12-month calling increments and 60-minute to unlimited time increments. Skype claims the plans will save users as much as 60 percent of what they pay for Skype’s existing Pay As You Go rates. (Channelweb)

While Skype’s closed, proprietary protocol has locked it out of the generic hardware device market, the company has continued to grow. Connecting calls aross oceans is a good short tern tactic for growing the company’s business. The big threat to Skype comes in the for of SIP, an open protocol used by most of the world’s VoIP providers and notably, Google’s Gizmo5.The openness of SIP opens the development of widgets or apps on new 4G mobile devices open to almost anyone. The investment required to maintain and grow a proprietary network to compete with free and open could cripple Skype in the future.

Much of the wireless industry has been resisting pretty strongly the idea of giving up the voice channel as a revenue stream. Fact what they are resisting is the concept that voice is just another piece of data. For example, almost a year ago Apple disapproved a Google app that permitted VoIP on the iPhone at the insistence of their AT&T transport partner.

Ok, but then what can you do about this? –

More time laughing with friends.
Less time in front of a computer.
Take free, unlimited Skype-to-Skype calls and IM on the go with your BlackBerry® or Android™ 3G smartphone from Verizon Wireless.

Yeah, its a shill quote right off the Skype site. But that is not what matters here. What is, is the fact that Skype/Verizon are putting a shot across the bow of every other vendor out there as it relates to voice minute charges.

Now of course there is a down side. That Skype call is now a data rated call. Which if you look at Verizon’s data rate plans is not a bargain in comparison. So for the consumer it is not a block buster cost saver. But this opens the door that voice is just another chunk of data. I would be inclined to look at T-Moble’s unlimited data plan for this Skype service. Get one of their Android phones and see what happens….

But the door is opening. Might take a year or two for folks to catch on but eventually there will be a data rate war in the wireless arena as voice channel services are dropped by consumers.

That is pulling the plug on POTS. You know that little jingly thing your mother and grandmother still use at lifeline rates? Yes its still out there but dwindling by the day. So what happens? –

In response to a Notice of Inquiry released by the FCC to explore how to transition to a purely IP-based communications network, AT&T has declared that it’s time to cut the cord. AT&T told the FCC that the death of landlines is a matter of when , not if, and asked that a firm deadline be set for pulling the plug.

AT&T tells the FCC that supporting traditional POTS landlines is impeding investment in broadband, VoIP, and wireless services.AT&T said in its response to the FCC that “with each passing day, more and more communications services migrate to broadband and IP-based services, leaving the public switched telephone network (”PSTN”) and plain-old telephone service (”POTS”) as relics of a by-gone era.”

It also stated “It makes no sense to require service providers to operate and maintain two distinct networks when technology and consumer preferences have made one of them increasingly obsolete.”

Is AT&T right? Yes. The fact is Central Office based systems have long lead times and nearly as long tax treatment. Most of the majors were using 19/20yr MACRS or ACRS depreciation on the capital investment as that was agreed to by both the industry and the IRS as appropriate, circa 1950’s. Little has changed on that front ever since. But that poses a problem for say Version who just put a new CO remote in 5 years ago. (Rare as that is.) So how would that install be treated? Under the current rules an accelerated recapture would take place for junking the equipment. That’s a major hit when you consider that even today CO investments are in the billions. So the Telcos would push for tax relief if devaluation ever happened.

My gut says not so fast. Even though what AT&T says is true I have the tingly feeling in the back of my head that it won’t work out that way. AT&T would take the revised recapture relief to the bank, not do any more R&D/advanced services/VOIP/network upgrades, then cry poor mouth all the way into the CEO’s pocket. I am not against AT&T, its just how these guys have operated for years. I have been in the belly of this beast to know better.

There of course is another fly in the ointment to a devaluation of CO networks. I call it the other 1200. That is approximately how many phone companies there are in this country. Most are small operators, functioning as COOPs in rural territory that none of the majors even want to touch. At a minimum there would have to be some sort of relief offered to these companies. At a minimum most would require a DSLAM to get their customers on to VOIP. Most likely SBA enhanced funding would have to be offered at 0% interest to these companies. To date I have not heard of any plans to do so.

Devaluing the POTS network has to happen. We need to realize that as soon as possible. We also need to make sure that in the switch serious profit taking does not occur. Compensation where needed, support where required, but in the end it should be a net-net wash.

Linky.

As is give the Telco monopoly a run for their money in the voice only space. Today, Google officially announced that they acquired Gizmo5 the internet smart phone service for ~$30m. –

It’s a potent recipe — take Gizmo5’s open standards-based online calling system. Add to it the new ability to route calls on Google’s massive network of cheap fiber. Toss in Google Voice’s free phone number, which will ring your mobile phone, your home phone and your Gizmo5 client on your laptop.


Meanwhile you can use Gizmo5 to make ultracheap outgoing calls to domestic and international phone numbers, and free calls to Skype, Google Talk, Yahoo and AIM users. You could make and receive calls that bypass the per-minute billing on your smartphone.

Then layer on deluxe phone services like free SMS, voicemail transcription, customized call routing, free conference calls and voicemails sent as recordings to your e-mail account, and you have a phone service that competes with Skype, landlines and the internet telephone offerings from Vonage and cable companies.

That’s not just pie in-the-sky dreaming.

Google could pull it off. Combined with their existing Google Voice offering, a GV-Gizmo5 combo might give the Telcos the heebes. Like how about a serious integrated message stack? Its been implemented for years as a per supplier proprietary service. But till now, as an open available anywhere service? Just hasn’t happened. But Google has the tools/network/talent to pull it off. Oh and they have the customer base to go from nothing to the most dominant intgrated message stack on the planet.

Bank on it.

Linky.

Skype’s getting new owners, and apparently new attitude. Third party support has enabled Skype to do things it was never intended to do and this has made it more useful to millions.  Even the clueless Ebay management understood the value of third party extensions.  While Skype API’s remain open for now,  it’s pretty certain developers will change focus to more supportive platforms. Whatever the reason, this move is increadibly short sighted. The new Skype  looks even less enlightened than the old one.

Starting Friday, Skype is effectively pulling the plug on its Extras program, which was designed to help third-party developers create add-ons for Skype’s VoIP service (Windows | Mac)–like emoticon enhancements, backup services, and music player plug-ins. Unlike Firefox’s similar third-party extensions, not enough people were installing Skype Extras, Skype said in both an e-mail and in a blog post to developers.

Developers and users will have some adjustment time, though. Skype won’t certify any new submissions, but it won’t yank support for existing Extras either, that is, until their certificates expire. You’ll still be able to install existing Extras through the Windows desktop client, and you’ll still see them featured in the Skype shop. Skype will also continue to maintain its public application programming interface. (Cnet)

There’s no question the Skype grew under Ebay’s ownership. There’s also little question that it would have grown without Ebay as well. An investor groups that includes a few tekkies as well as the usual suits may help Skype realize the potential Ebay management never understood.

eBay Inc. (NASDAQ:EBAY) today announced it has signed a definitive agreement to sell its Skype communications unit in a deal valuing the business at $2.75 billion. The buyer, who will control an approximately 65 percent stake, is an investor group led by Silver Lake and includes Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board. eBay is expected to
receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The company will retain an approximately 35 percent equity investment in Skype. The transaction, which is not subject to a financing condition, is expected to close in the fourth quarter of 2009. (Wall Street Journal)

While voice communications as  a stand alone premium service is poised to crash, the VoIP landscape is changing. With major players like Google and Yahoo offering competitive services and with smaller players like SIPphone taking market share, the area is becoming very competitive. With prices already at or near zero, competition will be in features, ease of use, and for fee value add options. As more open, 4G wireless networks enable the used of open mobile devices, look for the traditional voice carriers to enter the free or nearly VoIP arena as well.

Google Voice provided a great way to unify all of your other phones from one central number, but could not directly connect your calls. Gizmo has been the most innovative kid on the VoIP block, but has been overshadowed by Skype’s low flat rate calling prices to land lines and a big lead in user base.

Just announced, the two have been combined in a mashup to make a formidable product:

With Google and Gizmo5 you can get a suite of free calling services including:

• A free US telephone number which when called will ring anywhere in the world.
• Free* US calling.
• Free calls to:  1-800 numbers, SIP endpoints, GoogleTalk and Skype users.
• Use any PC, smart phone, Wi-Fi phone or ATA to receive or dial calls.  (Gizmo Voice)

eBay’s plan to spin off Skype with an initial public offering in 2010 is being threatened by a dispute with the VoIP service’s co-founders, who still own a key part of the software.

Bloomberg reports Skype’s founders Niklas Zennstrom and Janus Friis have accused eBay of breaching a licensing deal and are threatening to yank the technology, which would disable the popular voice over internet service.

In return, eBay is suing Joltid, the company operated by Skype’s founders, in a London court to prevent the shutdown.

The Skype founders apparently retained the service’s peer-to-peer sharing technology when they sold to eBay for $2.6bn in 2005. (Which, of course, begs the question why eBay would pay all that money without ensuring they own the entire platform).

Well smart business people always work to sell the cow but license the right to the milk it produces. That appears to be what is happening here with a legal scuffle between Skype founders and eBay. So when Meg Whitman, who was the CEO that brokered that deal, plunk down the money she did not read the fine print on what she was really buying? Certainly appears that way regardless of the outcome of the lawsuit.

Would be a real blow to eBay if they lose. The value of the Skype property that they are trying to spin off would be worth less if the buyer has to pay royalities to the two gents owning the technology. Any buyer worth their salt would know this and only pay accordingly. For what they would really be buying is just the customer accounts and IT infrastructure.

There are still some fun things to watch in the IT biz.

Linky.

Yes, it is not like when they were riding high Skype could care less about being interoperable. Fact they were down right rude about it, setting trip wires in their own systems so third parties could not use the IM capabilities, etc. But oh now that they might be spun off and have to make a profit they come sniffing with a call for ‘interoperability’ because they smell cash in corporate accounts. –

In particular, Skype wants support for Skype calls that come in to businesses using PBXs that support Session Initiation Protocol (SIP) trunking, said Stefan Oberg, general manager and vice president of Skype for Business “This is an area where we’d like to cooperate with you.”

Skype has announced its Skype for SIP capability that would make the link between its calls and corporate PBXs. Oberg was seeking cooperation to make interoperability easier for corporate customers. Skype has also issued Skype for Asterisk, which enables using Skype client software as softphones in businesses that use open-source Asterisk IP PBXs.

Oberg saod the company is building a stable of channel partners who will sell Skype to businesses and developing a premium support service that businesses require in order to ensure uptime for their communications. That will include local tech support with staff that speaks the local language, he said.

The company is also working on a business control panel, software that will enable a business to buy Skype credit and distribute it among individual users within the business.

I have only one thing to say to Skype. —

You are late to the party. You want to play now YOU interop with the standard, not the other way around. You had the opportunity to have your say in the matter years ago but decided not to play. Well tough. Play with the cards you dealt yourself. The world does not owe you favors. SIP is now the defacto standard live with it.

The gall.

Linky.