Skype Pushes Into Consumer Electronics
Skype's low-cost calling service may soon find its way onto a consumer electronic device near you. On June 23, Skype unveiled a feature that makes it easier for developers to weave its communications tools into such devices as picture frames and TVs.
The company rolled out its SkypeKit, which is a set of tools needed to integrate Skype into various devices. Initially, access to SkypeKit will be available by invitation only.
Until now, hardware manufacturers have had to ask Skype whether they can integrate its service into its devices. Skype would provide its approved partners with the software code necessary to build the feature in. Partners Panasonic and Samsung have already integrated Skype into their Web-enabled TV
Now, Skype is opening up this special code to anybody. Any maker of consumer electronics can take this code and integrate it into its gadgets. That should make Skype available on many more devices.
But there are drawbacks to this move as well. With the release of SkypeKit, Skype is relinquishing some control over the Skype experience. It will be up to hardware makers to make sure Skype users have no problems using the software. Poor implementations could, potentially, affect Skype's brand.
The upside could be substantial, however. The number of Web-connected devices that could, potentially, use Skype, is on the rise. Gearmaker Ericsson recently predicted there will be 50 billion Web-connected devices by 2020. "Our goal is to expand Skype across multiple platforms and empower third-party device makers and desktop software developers to embed Skype into consumer electronics devices and desktop applications," Jonathan Christensen, general manager for platform at Skype says in an e-mail. "This can go as far as the imaginations of our developers."
Wireless Net Neutrality: Dead?
The effort to let any Web service run over wireless networks may be dead.
On April 6, the U.S. Court of Appeals for the District of Columbia said the Federal Communications Commission couldn’t tell the U.S.’s largest cable company, Comcast, not to interfere with certain types of traffic. This in effect reverses the FCC’s 2008 ruling, which allowed Web services like Web-calling provider Skype to run over most wired networks, and to grow and prosper faster.
Ever since, Skype and other services have lobbied the FCC to impose similar, so-called net neutrality rules on wireless networks of carriers such as Verizon Wireless and AT&T Mobility. The agency’s chairman, Julius Genachowski, has said he’d like to extend net neutrality rules onto wireless networks.
Now, however, Genachowski's ability to go ahead with the reforms may be severely crippled. While the FCC could appeal the court’s decision, that could be a drawn-out process. And it’s likely to halt any new net neutrality rulemaking and proceedings. That’s bad news for Skype, as well as a myriad of other Web services that depend on being able to run over various carriers’ networks to grow. These companies will have to work with the carriers to gain access to their networks via business negotiations – as Skype has already done with Verizon Wireless.
Wireless Net Neutrality: Dead?
The effort to let any Web service run over wireless networks may be dead.
On April 6, the U.S. Court of Appeals for the District of Columbia said the Federal Communications Commission couldn’t tell the U.S.’s largest cable company, Comcast, not to interfere with certain types of traffic. This in effect reverses the FCC’s 2008 ruling, which allowed Web services like Web-calling provider Skype to run over most wired networks, and to grow and prosper faster.
Ever since, Skype and other services have lobbied the FCC to impose similar, so-called net neutrality rules on wireless networks of carriers such as Verizon Wireless and AT&T Mobility. The agency’s chairman, Julius Genachowski, has said he’d like to extend net neutrality rules onto wireless networks.
Now, however, Genachowski's ability to go ahead with the reforms may be severely crippled. While the FCC could appeal the court’s decision, that could be a drawn-out process. And it’s likely to halt any new net neutrality rulemaking and proceedings. That’s bad news for Skype, as well as a myriad of other Web services that depend on being able to run over various carriers’ networks to grow. These companies will have to work with the carriers to gain access to their networks via business negotiations – as Skype has already done with Verizon Wireless.
Seeking startup funding may soon get easier. A group of venture capital firms led by Andreessen Horowitz on March 1 unveiled a Web site www.seriesseed.com designed to streamline the way startups apply for seed funds, cutting the number of documents young companies need to fill out.
The Web site, formed with the help of startup lawyer Ted Wang, contains 30 pages of free documents entrepreneurs can fill out to apply for $300,000 to $1.5 million of initial funding. Typically, such documents run about 100 pages and have to be customized by lawyers. The 30-page term sheet would have to be customized as well, but it would dispense with some sections typically unnecessary for early-stage investments, such as those dealing with prior investors. The idea behind the effort is to “save start-ups time and money,” Wang tells Bloomberg BusinessWeek. “The negotiations process will also be shorter.”
Ten well-known venture firms have committed to accepting these so-called Series Seed Documents. They include Charles River Ventures, SV Angel, Polaris Ventures and Andreessen Horowitz, which is an investor into Web-calling company Skype and social games maker Zynga. “We are committed to making deals on these terms,” says general partner Ben Horowitz.
The venture firms hope others will end up supporting this effort as well. “I think this will become a new standard, and people will be able to raise money more quickly,” Wang says. Bloomberg LP or one of its subsidiaries is an investor in Andreessen Horowitz. Bloomberg LP also owns BusinessWeek.com.