Skype software
software for communication over the Internet, which includes voice, video, and instant message capabilities.
Skype was one of the early successes in using the voice-over-Internet protocol
(VoIP).
Luxembourg-based Skype Technologies, founded by NiklasZennström
of Sweden and Janus Friis of Denmark, first introduced
the software client in 2003. Registered users of Skype went from 53 million in
2005 to some 400 million by 2009.
VoIP communication, intended to eventually replace
conventional telephone
networks, operates by converting the analog
sound of a human voice into digital information and transmitting it over the
Internet, to be translated back into analog audio at the receiver's end. Unlike
many VoIP services, Skype uses a decentralized, peer-to-peer (P2P)
network, in which all connected computers share processing tasks and bandwidth,
allowing its capacity to scale in tandem with its user base. This P2P
technology was retained by Joltid, a company founded by Zennström and Friis,
and licensed by eBay. Because it operates over existing Internet connections
and does not require a dedicated network of cables, Skype can offer most core
services—including in-network long-distance calling—for free.
Skype is set up with a free software download. Customers can
use a desktop client, or “softphone,” to make voice and video calls to other
Skype users at no charge, using their computer's speakers and a microphone. For
a fee, customers may add the capability to call regular telephone numbers or to
receive incoming calls from regular phone networks. Features such as caller
identification, voice mail, and conference calling are available. Specialized
Skype telephones are available from some manufacturers, and the company has
developed software clients to operate on many popular models of
Internet-enabled “smartphones,” such as Apple
Inc.'s iPhone. A Skype user must be connected to the Internet, with the
software running, to receive calls, and emergency calling is unavailable.
In 2005 Zennström and Friis sold Skype to the
American company eBay
for $2.5 billion plus an eventual $0.5 billion in incentives. Communications
services did not fit well within the online auction company's business, and in
2009 eBay announced plans to sell Skype. Zennström and Friis expressed interest
in reacquiring the company, but eBay rebuffed their efforts, making instead
plans to sell a majority stake in the company to a group of other investors.
Zennström and Friis quickly filed suit, declaring that the technology behind
Skype was only leased to eBay through Joltid and that eBay had violated
Joltid's copyright by making alterations to the source code. This threat to the
core asset of the service forced eBay to compromise. The company agreed to sell
56 percent of Skype to a consortium of buyers and 14 percent to Zennström and
Friis for a total of some $2 billion. The two founders would receive seats on
Skype's new board of directors, and ownership of the core technology would be
transferred from Joltid to Skype.
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