September 19, 2003

Skype adds new languages to Internet phone software

Service, launched by Kazaa co-founders, enables free phone calls over P-to-P network

Skype, the new Internet telephone service launched last month by the creators of file-swapping service Kazaa, is now available in several European languages.

Skype Beta 0.92 is immediately available in Danish, Dutch, Estonian, French, German, Portuguese and Swedish in addition to English, owner Skyper Ltd. said Thursday on its Web site (www.skype.com). The software, which is free during the beta testing, can be downloaded directly from this site.

The VoIP (voice over IP) software program, targeting the consumer market, has been downloaded 520,000 times since its launch three weeks ago, according to the Skype Web site.

Skype uses the same peer-to-peer (P-to-P) file-sharing technology as Kazaa, the popular file-swapping software that has upset the entertainment industry because it allows free downloading of copyright-protected works. Skype was launched by the co-founders of Kazaa, which is now owned by Sharman Networks Ltd.

While Skype's features look much like those of popular IM (instant messaging) services such as Microsoft's MSN and Time Warner Inc.'s AOL Instant Messenger, its underlying technology is different -- and better for voice communications, according to its creators.

Skype's new "Global Index" technology enables VoIP and IM communications over a decentralized P-to-P network. The index establishes a multitiered network of "supernodes," or hubs, on the network to mimic a central directory, according to its Web site.

Skype technology routes encrypted calls "intelligently" through the most effective path possible, keeping multiple connection paths open to prevent call interruptions should a node en route sign off.

In addition, Skype claims its VoIP software is easy to install, offers sound quality superior to regular telephones and works with all firewall, NAT (Network Access Translation) and router systems.

On the regulatory front, Skype doesn't appear to face any obstacles.

"Europe has no restrictions on VoIP services as far as I know, although there has been some discussion about regulation," said Josephine Kenny, senior analyst for European network services at Current Analysis Inc. "There's actually a lot of activity on the European VoIP market right now, with many new operators using this technology to penetrate the small and medium-sized enterprise and residential markets. So I would be surprised to see regulators want to introduce any rules that would hurt competition."

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