The Call 13 - 8/23/2004

From Michael Robertson, CEO and founder,
SIPphone.com

Hello PhoneGaim, Goodbye Skype

Last week we launched a product in conjunction with Linspire, which we expect to see on all platforms soon (Linux, Mac and Windows). The product is called PhoneGaim. It combines instant messaging and SIP Internet calling. Let me tell you why I'm betting PhoneGaim will pass proprietary services and networks like Skype:

Meta IM Client
Gaim is a meta IM client for Linux and Windows. That means that Gaim itself is not an instant messaging network, but a piece of software that lets you manage accounts on all the major IM networks, including AOL, MSN, ICQ and Yahoo! Because it is all ready too hard to manage our existing identities on the Internet, I think it is key not to yet another identitfy. We added SIPphone functionality right into Gaim to create PhoneGaim. There is nothing to configure, just launch it and you can start making calls. Skype on the other hand is a whole new network, with a new client and a new address book to manage. No thanks.

Open Source
As you know, I am committed to the open source approach to software. All the work we did on PhoneGaim is being added to the Gaim open source project. We will actively assist the Gaim development team extend the PhoneGaim to other platforms and to develop more features or functionality. You are invited to get involved if you are interested. Unlike PhoneGaim, Skype is a proprietary application, on a closed network, developed and managed by one company.

Free
Like SIPphone's service, PhoneGaim is free. In fact, PhoneGaim customers can call anyone in 30 countries on the PSTN (old phone system) for five minutes every day for free. While individuals love free, there is a more important reason to make new services free. By lowering the barriers to get started with a new service, we hasten the demise of the old, out-dated technologies and companies. Today, Skype is free to call other Skype users, but let's be honest, the primary reason Skype created a proprietary network is to lock-in users. Companies like locking in users, because it means higher profits later, but its certainly not good for customers.

Interconnected
A network's value grows exponentially as its members increase. Because SIPphone interconnects with most of the major SIP networks around the world, with more added each month, PhoneGaim users can make and receive calls not just to other PhoneGaim users, but to all SIPphone customers, most major SIP networks, and even to the PSTN network. So while Skype can talk about millions of downloads today, this is nothing when compared to the 2.5 BILLION numbers a PhoneGaim/SIPphone user can call, millions of which are free calls.

Standards-Based
Standards means choice, and choice is good for everyone. Everything about SIPphone and PhoneGaim is standards-based. Proprietary systems may look attractive in the short term, but in the long run standards win. Why? Because standards allow every hardware company, software developer and network to work to advance the industry. Proprietary systems instead are tied to the progress and fate of one company. If Skype users want to talk to a non-Skype user, they are out of luck. Nor can outside companies or individuals add cool new services, hardware or applications to Skype without their permission. This is definitely not the best way to drive innovation and growth on a platform.

Can you imagine if four years down the road and there are a few big VoIP networks that don't talk to each other, similar to today's IM networks. What a nightmare. No thanks.

We hope you enjoy and are inspired by PhoneGaim. Let us know your thoughts and feedback in our user forum.

**Michael Robertson
CEO and Founder
SIPphone.com

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