Section 7.3. SkypeOut

7.3. SkypeOut

July 24, 2004, was the day the Skype users of the world could connect to the non-Skype users. SkypeOut, their name for calling traditional telephone numbers, went live that day. Before SkypeOut's first birthday, the service had over a million paying customers.

This step required Skype to get involved with traditional telephone suppliers. They leveraged the modern expertise of Level 3, Cable and Wireless, and other global telecom suppliers who all connect to phone networks all over the world.

7.3.1. Signing Up

There are no extra hoops to jump through to add SkypeOut service to your existing Skype account. The only requirement is to purchase SkypeOut credit, because this works like a phone card. You buy some traditional telephone line connect time via SkypeOut, and then you can call your non-Skype family and friends.

Figure 7-1 shows the Skype web page used to purchase SkypeOut credits. When things work, they work well. When they don't, well, that's discussed next.

Figure 7-1. Buying SkypeOut credits for the first time

This page starts the buying process. The default purchase amount is 10 euros, which is about $13.25 depending on the exchange rate. Skype started in Europe and has no American offices, so euros are their currency of choice.

They will ask for various information in order to verify your credit card account. But they quit taking credit cards directly in February 2005 and now only accept MoneyBookers (www.moneybookers.com) and PayPal.

Adding PayPal, although only a beta test in February 2005, makes a great deal of sense and answers one of the most serious and consistent complaints about Skype: bad transactions and worse customer service through MoneyBookers. The ranting and raving about MoneyBookers on Skype's own customer forum rolls on forever and ever.

There are few, if any, happy endings with MoneyBookers. People recount being refused transactions on paid-up credit cards regularly accepted by local and online merchants. People recount finally getting the Skype credits they purchased, but it took so much time and aggravation that they still seethe. People recount having purchases disappear, never to be heard from again, or used for SkypeOut credit.

PayPal's chance to reclaim some Skype goodwill should be grabbed and held tightly. Providing reliable transactions for SkypeOut will make PayPal the favorite pay service of all frustrated SkypeOut users.

I'm amazed Skype let so much ill will fester for so long over MoneyBookers. Since SkypeOut minutes is their first premium service and primary revenue generator, one would think Skype executives would pay closer attention. When your own forums are full of customers recommending competing services because they hate your payment options, some type of action is overdue. Go to work, PayPal.

Once SkypeOut credits are purchased, they appear on your Skype Start page. Whenever you start Skype, the first screen you see shows your remaining SkypeOut credit balance, as you can see in Figure 7-2.

If you don't have any SkypeOut credits, Skype puts a commercial there, which says, "SkypeOut: Global calling at local rates." The rate comment fits. Most calls cost two cents per minute to the two-dozen most common country-calling destinations, and other rates remain reasonable even by broadband phone-pricing standards.

European customers struggle with various VAT (Value Added Tax) rates and details of business within the European Union. So far, for instance, Skype does not offer a way to buy SkypeOut credits without paying VAT. Lucky for me, Skype doesn't charge VAT for those living outside the European Union.

Figure 7-2. Notice my SkypeOut balance

Businesses buy things without paying VAT, but Skype's help screens say the service is targeted at consumers who must pay VAT. Presumably the Skype For Business program, when launched, will take care of these details.

7.3.2. Calling Your Non-Skype Friends

Once SkypeOut credits are in your virtual pocket, calling can commence. There are four ways to call using SkypeOut:

• Type the phone number in the text field at the bottom of the application.

• Use the dial pad to type the number.

• Highlight a SkypeOut contact saved previously.

• Re-call a call from your Call list.

Option 2, using the dial pad, is a pain (put your cursor over the 0 and left-click for two seconds to get a plus). Skip that one. But you will have to use the dial pad to respond to requests for phone menus (press 1 for sales, 2 for returns, 3 for incredibly boring music on hold, 4 . . .). Still not fun.

You must use the international dialing format with the "+" and country code before each SkypeOut number called. Americans dial the least amount of digitsfor example, [phone]. After you enter the number in the text field, click the green button with the off-hook icon and SkypeOut will start dialing.

After you've called someone on SkypeOut, you can save them as a Contact. Right-click on that call in the Call List page, provide a name for that saved call, and you're done.

Quality seems, to me, consistently below the Vonage call quality, and well below the quality for a Skype-to-Skype call. Randomly the call quality drops far below normal, more often than on other broadband phone services. But with rates so cheap, hanging up and calling a second time works.

Calls to traditional telephone numbers stay encrypted until they leave the Skype network. Calls to toll-free numbers still incur SkypeOut charges. No 911 or other emergency call options exist.

7.3.3. Tracking SkypeOut Usage

The first trick to knowing your SkypeOut credit can be found on your Skype application, as seen in Figure 7-2. You must visit the Skype web page and log in to see more SkypeOut information. My call list appears in Figure 7-3.

Reach this screen by logging in to Skype, choosing My Account, and clicking either My Recent Calls under the SkypeOut balance listing or the Call List menu item on the left side of the screen. You may also click All My Purchases to track expenditures on Skype equipment such as headsets.

You can't make SkypeOut calls if you don't have enough SkypeOut credit for at least one minute of calling. Skype also stops you from over-buying SkypeOut credits by blocking more purchases until your credit drops toward empty.

If you quit using Skype for 180 days or more, any SkypeOut credit will disappear. Calling again will reset that 180-day counter, but it may take a few days to update your screen.

Figure 7-3. SkypeOut call detail