Skype outage underlines unsolved VoIP issues

On Thursday 16 August, subscribers found that they couldn’t log in to their computers to make a phone call.

Skype informed worldwide users on its website on Thursday morning that a software glitch was the culprit. It was thought that the problem would be fixed within a day, but Skype has admitted that, although some clients could access the service, recovery was not complete by the weekend.

Skype is part of a new wave of companies that is shaking up the telecom industry. VoIP technology enables them to send voice signals over data networks like the Internet, cutting the cost of calls. The company has made a name for itself by offering calling via computers, either free or for a small fee. Backed by its parent company eBay Inc., Skype is trying to reach new clients, including businesses.

The outage, and the difficulties experienced correcting the problem, underlines the caution felt in the telecoms industry over the rapid rise of alternative phone companies. Outages like this could force consumers to consider other alternatives. Skype is based on peer-to-peer technology, which leverages the processing power from users' computers. Other firms, like cable operators, send calls over their own private networks.

Unlike the established phone carriers who have controlled the phone market since calls were first made more than 100 years ago, the new providers still have network issues to sort out. VoIP has grown very quickly and an outage that continues over a period of time could turn some consumers off the new technology.