There has been plenty of discussion surrounding the newly released Skype application for iPhone. I have come by numerous articles deeming it useless, pointless, or a complete waste. These reports often include entirely untrue and misleading information. For example, this Skype FAQ article states the following.
8. Can you also forward your mobile calls to your Skype-In number? If you can, presumably you can avoid time charges from your mobile carrier by making and receiving all calls with Skype as long as you're somewhere where you can get a Wi-Fi signal.
This wouldn't actually work in your favor on the iPhone if you intend to use the device for anything other than waiting to receive a call. Remember that Skype is only active when you're signed in, and cannot run in the background due to Apple's rules and regulations in its version 2.0 software.
The preceding information is false. The iPhone has a free application, named "Backgrounder," that will allow one to remain logged into Skype while also using any of the iPhone's other features or applications. Thus, users can receive calls at any time via Skype. That is just one significant reason why Skype is a viable replacement for traditional cellular service.
Note that I do not intend to single out that particular article, but I have indeed read numerous statements like that one in recent reports. They mask themselves as helpful FAQs or objective editorials while manipulating less informed consumers who are curious about replacing their cellular services with VOIP. I am unaware of the reason that so many bloggers want to dissuade readers from abandoning their beloved phone companies.
I, for one, encourage the mass (dare I say, inevitable) exodus to begin. No longer are users tied to lengthy contracts with exploitative terms of service and exorbitant charges. While I could preach my points with a nicely refined essay on why Skype is the cellular savior, instead I am going to do what other theorists are not by putting my proverbial Skype credit where my headset is. I have become living proof that mobile Skype is the liberator of consumers from the tyranny of traditional phone companies.
What I Did
To start, I downloaded the Skype iPhone application, followed by Backgrounder. This allowed me access to Skype on my mobile device and run it simultaneously with other programs.
Next, I went to Skype's website and signed up for a 12-month service plan, which costs $29.50 per year (the monthly option is $2.95). The yearly plan qualified me for a 50% discount on an "online number," which is necessary for non-Skype users to call my phone. There were tons of choices available, so I eventually selected a new number that I was satisfied with and paid $30 to acquire it. All together, the Skype portion of the process cost me $60 and set me up for a full calendar year.
To conclude the conversion process, I had to dump my old service provider. This was undoubtedly the most satisfying step. I called AT&T and had my contract canceled immediately. Of course, I was charged an early termination fee of $175.
That was all it took for me to switch from my traditional phone company to an affordable, high-quality VOIP solution. I will never be forced into an overpriced, long-term phone contract ever again. Imagine how good that feels. The future of cellular telephony is here.
Numbers and Concerns
In case you are curious to know how I weighted my decision to switch exclusively to Skype, I am going to provide you with my thoughts and calculations.
My Old Contract
I signed up for my 2G iPhone with a 2-year contract in December of 2007. Since that time, I had both the minimum allowable monthly phone plan from AT&T at $39.99 and the required data plan at an additional $20.00 per month. Sinisterly enough, I was also charged hidden and unexplained fees of approximately $7 per month. All together, my monthly 2G iPhone bill came out to $67, which equates to $1,608 over the lifespan of the contact. Note that although the hardware initially cost $399 plus a $35 activation fee plus taxes, this information did not apply to my decision to switch, since I will continue to use the same hardware and only my service is being altered.
Enter Skype
By the time Skype came to the iPhone, I had eight months, or $536 remaining on my contract. The fee for me to terminate my contract early was $175. Setting up everything I needed for Skype, as previously described, cost $60 for an entire year. To equal out the terms for comparison, I will count only eight months worth of my Skype costs, or $40 ($60 * 8/12 months).
Obvious Monetary Savings
$536 payments remaining on my contract
-$175 early termination fee
-$40 cost for Skype
=====
$321 total savings for switching to Skype
By the time December of 2009 rolls around (when my original contract would have expired), I will have saved $321 by switching from AT&T to Skype. Note that in your case, the more months that are left on your contract, the more money you will save by switching out early. My early termination fee of $175 is equal to only 2.67 months of service. As of this writing, for anyone with more than two months remaining on their contracts, which would include all current iPhone users, it pays to switch.
Non-monetary Concerns
- Wi-Fi Only
- Skype Only Works When it is Running
- No Emergency Calls
- Quality of Service
One major issue with using Skype as the only service provider for my iPhone is that it will only operate when I have access to wireless internet. This concern was mitigated with ease after I thought about it for a moment. I work on a college campus that is fully covered with a wireless network and also have a Wi-Fi base station in my home. The only times that I find myself separated from wireless access are when I am outside (and would not want to talk to people on the phone) and when I am driving (and definitely should not be using my cell phone). I estimate that I spend as few as 16 and as many as 23 hours enveloped in Wi-Fi on any given day. I think I can plan my calls around this schedule.
Ah, but with Backgrounder, I can run Skype at the same time as any other applications on my iPhone. Thus, Skype is prepared to receive calls whenever I want to be reachable. Other articles' claims that this is impossible are plainly untrue and misleading. All one needs to do is download Backgrounder via Cydia and set Skype to run in the background. It takes no special configurations nor technical knowledge, but just a few touches of the screen.
Skype has been adamant for years about not linking into emergency phone services. Months ago, before I even knew a Skype application was being developed, I hinted at my plan to transition to VOIP to a family member, once the right avenue became available. I mentioned that one drawback was no access to emergency service. I received a reply to the effect of "people lived for years without cell phones." That statement instantly help me put things into perspective. Mobile phones are not necessities, rights, nor privileges. They are simple luxuries that people pay to have access to and have only become common over the last 10-15 years. I hope to be fortunate enough not to be subjected to any emergency situations that would require a call from my iPhone. However, I believe that should I encounter one, using my own instincts and intellect, paired with the copious non-cellular emergency services available, will be a much better solution than immediately running to my mobile phone and expecting everything to be all better in an instant. Paying for traditional phone service just to keep the emergency calling feature would be as spurious as paying for a home security system or health insurance because I believed that it protected me from harm. There is truly no such thing as protection, for these services only provide customers with an illusion that is perceived as safety. Actually being as safe as possible and doing the right things at the right times is a far better course of action. Yet, as more and more people rely on Skype and other VOIP products, providers will eventually be compelled to integrate with emergency systems.
Everything that I have read about VOIP indicates that it is just as good, or better, than traditional phone networks in terms of service quality. Obviously, this is something that I will have to experience for myself and cannot assess for certain at this time. However, others' positive experiences are enough to encourage me to at least try VOIP. Furthermore, Skype offers a free test number, which allowed me to check my connection and hear myself speaking as would someone on the other end. It sounded excellent.
Conclusion
Having addressed all of my concerns related to making Skype the sole provider for my iPhone, I was ready to take the plunge. In spite of all of the opinions that one can find online that speculate against what I am doing, I aim to be concrete proof as to whether Skype can replace AT&T for iPhone users across the globe. I plan to weigh the pros and cons at a future date and will be sure to report back on my experience. Seeing as the break even cost point between my old contract and my new service is approximately two and a half months away, I believe that that will be an opportune time to reassess my personal experiment and share the findings.
Update: I have now written a three step guide that explains how you can make the transition to Skype-only service for your iPhone.
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