Good-bye Free Skype, We Hardly Knew Ye

Skype announced that it's about to start charging for SkypeOut—the service that lets you use Skype to call ordinary landline phones. As you probably know, Skype was originally developed to facilitate computer-to-computer voice calls.

Typically, a Skype user downloads Skype software, creates a Skype ID, plugs a headset (earphones and mic) into their computer, and then starts calling other Skype users. Skype first became wildly successful in Europe because phone rates are higher there and international calling is routine. It slowly gained popularity in the United States as more people realized how it could be used as part of their overall telecom strategy.

The ability to place a call from Skype to someone's landline is a newer feature. Until the new announcement, this service was free. Starting in 2007, it will cost $30 per year for unlimited calls to landline and wireless phones. That price wildly undercuts standard VoIP providers such as Vonage and SunRocket, which often cost at least that much per month.

But SkypeOut offers less than VoIP providers. Unlike standard VoIP, SkypeOut doesn't give you a number that others can call. You can call them, but the call is anonymous. They won't see your name on caller ID, and there won't be a number to which they can return the call. And until recently, in all likelihood it meant that the caller was sitting at a PC, connected by broadband to the Internet, using a headset or other Skype-compatible device, and standing by for the call—a very different behavior than answering a phone.

On Monday (after certain product announcements) I'll explain how you can get the best of both worlds—a way to get the VoIP-type freedom of a phone and the $30 SkypeOut fee.

P.S. The insider gab: Industry analysts are saying that all of this was precipitated by the "suddenly last summer" move when eBay bought Skype for $2.5 billion. eBay was supposed to integrate Skype into its auction pages so that sellers and buyers could chat. Many analysts believe sellers do not want to chat with every potential buyer because of time and expense, and eBay hasn't moved quickly on integrating the concept. Some speculate that this new move to charge for PC-to-landline calls is a way to get some cash, fast.

P.P.S. The bargain hunter gab: Sign up for SkypeOut before January 31 and you get a 50 percent discount on the $30 annual fee plus some other deal sweeteners.