Skype’s SIP Support Creates New Telephony Opportunities

Free phone service provider Skype is horning further in on the
corporate market with new functionality that enables it to work with
most existing corporate phone systems.

Skype for SIP, which the company has released in beta, works with
SIP-based PBX systems to enable companies to receive calls from Skype
users directly into their PBX system. This new functionality pushes
Skype past the free computer-to-computer calling model that put the
company on the map and into the more mainstream low-cost calling model
using traditional telephony systems.

Companies using Skype for SIP can use the service to place calls to
landlines and mobile phones worldwide from any connected SIP (session
initiated protocol) enabled PBX at Skype’s global rate, which currently
is 2.1 cents per minute. They also can connect with customers via a
click-to-call icon on the company Website, and the calls will be
received through their existing office system at no cost to the
customer.

The Skype calls can be managed just as a regular call would, through
a company’s existing hardware and system applications; no additional
downloads or training are required, according to the company.

For solution providers, the Skype for SIP application can be one
more way they can help their customers save money without costly
hardware and software replacement or upgrades.

“It’s positive and negative in both aspects,” said Quy “Q” Nguyen,
CEO of Allyance Communications, an Irvine, Calif.-based communications
solution provider. “It’s definitely positive for the customers –
especially in today’s economy, their No. 1 initiative is to cut cost.

“This is also great avenue for solution providers to get their feet
in the door and talk to customers about helping them reduce their cost
without significant upfront capital,” he added. “The last thing any
solution provider wants to do is sell something that’s not going to
help the customer’s bottom line.”

However, he said, for solution providers already working with
carriers such as Verizon, Qwest, AT&T and the like, the new Skype
offering could cut their monthly long distance revenues dramatically.
“With the Skype SIP platform, a customer’s monthly bill could decrease
from $50,000 monthly, for example, in long distance charges to $20,000
to $40,000, depending on a number of factors [such as] their overall
usage, their current rate plan, their international call destinations,
who else is using Skype to call them.”

And, he said, despite the drop in call costs, customers could see
other costs increase with Skype for SIP. “Customers need to be careful
if they have a certain contractual volume commitment [with their
service provider] or else they will be financially penalized. Also,
customers will need to beef up their bandwidth to withstand the
increase in VOIP traffic,” Nguyen said. “So on one end, they’ll need to
pay more for bandwidth charges but they’ll save more on the long
distance charges.”

Still, he noted, for a certain segment, Skype for SIP can be an
attractive offering. “If the beta is proven to be effective and the
call quality is up to par, I can see the immediate impact from a cost
saving perspective to our customers.”

Skype for SIP will be fully released later this year, but companies
interested in taking part in the beta program can sign up at www.skypeforsip.com.
Applicants will need to be businesses and have an installed SIP-based
IP-PBX system, as well as the ability to configure their system. Only a
limited number of participants will be able to participate.