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I knew it was over when I downloaded Skype. When the inventors of KaZaA are distributing for free a little program that you can use to talk to anybody else, and the quality is fantastic, and it s free it s over. The world will change now inevitably. Michael Powell, Chairman, FCC The idea of charging for calls belongs to the last century. Skype software gives people new power to affordably stay in touch with their friends and family by taking advantage of their technology and connectivity investments. Niklas Zennstr m, CEO & cofounder of Skype

Many readers will recall KaZaA, the file sharing program that became well known during the turbulent Napster controversy over the unauthorized sharing of commercial music. The same two programmers who created KaZaA, Niklas Zennstr m and Janus Friis, put their heads together and concluded that while peer-to-peer music works well, it is fraught with legal ramifications. So what else could be shared in a peer-to-peer fashion Voice.

% Depreciation 10.35% 10.03% 4.56% 8.31%

Figure 7.10 Schematic and netlist for the push-pull converter with improved regulation. B1 compares the sine-wave reference with the output voltage.

Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.

3

To date, more than 45 million people have downloded the free Skype installer, and as I sit here writing this section in mid-December 2004 there are 1.6 million people online. I have used Skype for over a year and the service is excellent. The only downside is that the original, free Skype is a walled-garden technology users can only talk with other Skype users. But with over a million people online at any time, and with the application s ability to search for other users by city and country, you ll find someone to talk with. Skype also supports messenging and videoconferencing. Of course, the walled-garden concept is limiting, so in early 2004 Skype announced SkypeOut, a paid service that allows Skype users to place calls to regular telephones in about 20 countries (and growing) for about two cents per minute. Vonage and Skype are but two of the growing herd of public VoIP providers that are redefining the world of voice services. In the enterprise space, VoIP is having an equally dramatic impact. Let s examine the various ways in which enterprise VoIP can be deployed to the benefit of customers.

Wfm1:

Working capital is needed to support the sales effort of a company. In the calculation of incremental working capital, we want to find shortterm assets and liabilities, the levels of which depend directly on the

IP voice has become a reasonable technological alternative to traditional PCM voice. VoIP gateways are in the late stages of development with regard to reliability, features, and manageability. Consequently, service providers wishing to deploy VoIP solutions have a number of options available to them. One is to accept the current state of the technology and deploy it today, while waiting for enhanced versions to arrive, knowing that while the product may not be 100 percent carrier grade, it will certainly be an acceptable solution. A second option is a variation of the first: Implement the technology that is available today, but make no guarantees of service quality. This approach is currently being used in Western Europe and in some parts of the United States as a way to provide low-cost long-distance service. The service is actually quite good, and while it is not toll quality, it is inexpensive. And since most telephony users have become inured to the lower than toll quality of cellular service, they are less inclined to be annoyed by VoIP service that is lower than they might have otherwise anticipated. Needless to say this works in the favor of the VoIP service

Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.

Wfm2:

TABLE 5-7

provider. Furthermore, the companies deploying the service often have no complex billing infrastructure to support because they rely on prepaid billing models, thus they can keep their costs low. SkypeOut, for example, allows subscribers to buy credit online using a credit card.