Martin Lewis, Money Saving Expert
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Never use Skype to make a phone call. The Skype hype has led many to proclaim that this piece of internet software, which allows web users anywhere in the world to speak for free, will kill the telephone. Yet for ringing real phones, it can cost up to five times as much as conventional calls.
Skype has been beautifully branded, and now many of us have learned to talk over the net, it wants to direct us to its real profit centre: making web calls to normal phones.
There’s no doubt Skype is the leader among Voip (voice over internet protocol) providers, which allow you to speak over the web. With it, you and anyone else, anywhere in the world, with a headset, a microphone and, preferably, a broadband internet connection can talk to each other at no cost if they also have Skype — well, apart from any internet connection charges that is.
My non-techie explanation is simply that when you speak, the sound is converted into data, which are streamed through the internet like any other file, and then converted back into sound at the other end. All Skype — and indeed Siphone, MSN Messenger or any other Voip providers — really do is provide the software to convert and stream the noise.
But Skype wants us to go a step further; it wants us to make calls to real phones using Skype Out. Here you click the “dial” tab, enter any phone number and while you are on the web, it calls a real phone. But this isn’t free, and you are charged per minute, so it isn’t particularly cheap either.
Now, when I say this, I’m not comparing it with calling abroad on BT’s basic tariff. It’s much cheaper than that, but if you can’t even beat BT, you shouldn’t be in the game.
Yet Skype Out isn’t just beaten by other Voip providers, it is beaten by normal phone companies too — specifically several small firms where you just dial an access number to connect from your normal home phone. They are called override providers because they override your normal phone company’s charges, and you pay theirs instead.
For example, a half-hour call to India is £6.60 on BT’s option 1 package, £3 on Skype Out, but just 90p from your home phone using the cheapest override providers, which include Bestminutes, Phonecheap and Telesavers. Skype is even worse for calling a UK mobile. For a half-hour evening call, it is £5, yet BT’s standard tariff is only £2.40, and the cheapest override provider, Phonecheap, is just £1.50.
While Skype is great for speaking to other web users online, it is not worth using to make normal phone calls. The only exception is when travelling abroad, where if you have cheap internet access, calling home on Skype will massively undercut the cost of a the hotel phone call. So here is my guide to making the cheapest calls overseas.
If both parties are on the internet: Provided you have both downloaded the same free software, be it Skype, MSN Messenger or others, just plug a headset with microphone into your computer, connect and talk. With a webcam you can make video calls.
Calling free on normal phones: Jajah. co.uk is a hybrid “web-activated” service, which allows free calls on normal phones, provided both parties have registered online. To use it, simply type both phone numbers into the web page and they will be rung, enabling you to talk. It is only free mainly in North America, Australasia and Europe, but has the big advantage that only one of you needs to be near the computer to make the call.
Calling a normal landline or mobile from a computer: While Skype isn’t particularly competitive, two sister firms, Voip Stunt and Voip Cheap, offer free web-to-phone calls to much of Europe, North America, Australasia and southeast Asia, provided you top up your account with £10 every few months. These are no-frills firms with limited customer service, but as the prices even for countries outside the free zone are dirt cheap, it is worth trying.
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Undoubtedly there are some benefits from Skype to Skype users. Mainly the chat feature. About the only thing that functions effectively most of the time.
But the adage, "you get what you pay for" applies here. The free service in my experience is fraught with technical problems and poor sound quality. I have had relatively few calls over two years that were not dropped whether skype in or skype out. And in this case, I certainly consider that I'm not getting what I pay for, as the constant dropped calls cost me at least the price of a lost minute everytime it happens, multiple times per day. At .25 cents US each occurence (it varies by country), the amount of value that dropped calls cost me must total in the 100s of dollars by now.
What amazes me is that a capitalist system has not managed to put skype and its "non" support team out of business as yet. Anyone with half a decent Voip system and real customer service should have been able easily to do it.
GJ, DC, USA
I live in Mexico and have Skype. I bought credit by depositing money into a bank here and this money was transferred to their Mexico City main bank. A bank in the Nethelands is to handle this. Since this company was bought by Ebay I, now, cannot use my debit card from the US and as I was doing before this purchase. I have been waiting SINCE 20th of July to have my money credited to my account. Even went to the bank here and they told me the money was received in Mex. City. Numerous emails and even paying to send a scanned copy of my receipt. Obviously, am not happy as the replies have not resolved the problem.
Dinah DeVry, Ajijic,
I have a land-line contract with TalkTalk from Carphone Warehouse. It includes free broadband, free calls to landlines in almost all of Europe, UK included, any time any day, free calls to landlines elsewhere in the world, notably the USA and Canada, and free calls to US cell-phones. I also get preferential tarifs for calls to other countries. There could well be more, but that's all I use.
I intend hooking up to VOIP from Skype, for "conference calls" to other Skype phones with friends with similar tastes and interests to mine. I do not intend using Skype for calls to or from non-Skype phones. Am I missing anything out in my plans?
Thanks for your help.
Edward GRS, portsmouth, hampshire
Wow - which corporation is paying for this article? This article is very misleading! I paid 14.99 for unlimited calls to the US and Canada for this year - Incomings calls cost me $30 per year
$45 A YEAR is more expensive than tradition phones??????
Don't like Ebay owning Skype - but so far it has been great and I have enjoyed the free call days and the free long distance calls to ordinary phones and cell phone they gave away last year
J Day, boise, idaho
What I have seen with Skype is that it took over this market because of its smart marketing. I have been using VoIP services for years through yahoo messenger, MSN and others but it's like Skype re-invented the wheel (or VoIP in this case) and everyone discovered the technology. That meant that since most people you knew were on Skype you had to be on Skype to talk to them. What's worse is that companies took Skype as a cheap way of communication which meant Skype's subscriber numbers went to crazy numbers. More or less how Microsft took over the market with MS Office, if everyone was used to it at home (even in illegal copies) companies had to buy it because that was cheapert than re training all their new employees on a new package.
I see it as a current craze and if I had skype shares (hypothetically speaking) I would keep them another few months and then sell them.
Alex, Manchester, UK
I am a young proffessional living overseas and skype is by far the best way of keeping in touch with family back home and friends around the world. Phone cards are a faugh and unreliable and pay as you go mobiles are a rip off for overseas calls. I do not have a landline, or an incomming number on skype so I can call people on my own terms! Skype also has the advantage of beiing able to easily monitor your useage and call costs - so there are no nasty suprises when you get the phone bill!
N, Bergen, Norway
When I signed up for Skype I laid out US$10 for any calls I might want to make to regular phones. Since then I have made over 25 relatively short calls; one or two to mobile phones; about half in the UK to UK phones and the other half from the US to the UK. I have US$6.27 left in my account. Only one call has had a bad connection. I'm glad there's something cheaper out there if you say so but Skype's good enough for me!
Richard Evans, Midlothian, Va, USA
I don't really think that Martin Lewis has got it completely right about Skype as his numbers don't add up. I live in Spain and pay 54 cts or 36p for that 30 minute Skype out call when I call a UK or US land line number from Spain. Thats 54p less than the cheapest low UK cost provider and I dread to think what BT will charge. Maybe rip off Britain is alive and well even with Skype and UK users get charged 16p a minute instead of the 1.2 p a minute I pay for Skypeout. He also mentions calling a mobile number but the article doesn't say whether its a UK mobile number dialed from the UK or outside the UK. Mobile charging is a minefield and unless its with the same service provider for both ends and a special deal, its anyones guess what a call will costs you. This isn't just Skype its the same for all call providers.
Mike, Alicante, Spain
Good article. The hype made me look into Skype at the time. We use PC to PC calls very rarely, the people I tend to call will not have their PC switched on all the time. I suppose you can negate this with a phone into your hub/router.
I decided to go to one of the override providers, 18185 and talktalk and have saved me lots. Free national weekend calls and all national calls 4p (regardless of time spent) at other times. I call S.American phones both mobile/fixed and 18185 was MUCH cheaper than Skype out...
You're the only journo who bothered checking it out.
Terry, london,
Skype has provided great deals for it's US (and Canadian?) customers as Dan and Sean mention. Sadly, they have not provided the same deal to customers in Europe or elsewhere. Instead in this part of the world they have slapped a 'connection fee' charge on every skypeout call made in addition to the usual charge per minute.
That's why europeans now only use it for skype to skype calls.
N, Trogir,
I have championed Skype to all my friends. However, a numebr of hidden charges such as connection fess have crept in. This si an underhand mean practice aimed at connign the consumer.
I have moved to VOIPCHEAP.COM. Easy to use cheap (or FREE) to call landlines and transparent charging.
Peter, seoul, Korea
I have been using Truphone for mobile VoIP calls for almost 2 months now. It takes the whole Skype concept into the realm of mobiles phones, and when Im travelling on business it's dramatically reduced my phone bills. I dont even really touch my Skype now except for when Im in the office, taking calls. It seems that VoIP is definitley moving forward and something that I think we will all be using as everyday technology in a very short space of time.
Jo, surbiton, surrey
I also recently signed up for the unlimited long distance and local calls for 24.95 a year. The Sound quality is every bit as good as Vonage! The Article is very misleading!
Ashtonford, Woodbridge, Va
I have been using Skpe and Skpeout for nearl 2 years for all my Telephone calls both in the U.K and the USA where I spend the winter. In the USA I used to use phone cards but as I regulary transpose figures the long number chains become a problem with calling cards or special numbers.
Skype have constantly improved their product so that if I see a telephone number on a web page I just click on it and Skpeout dials it. Then there are the free Video calls to other Skype using friends.I reckon I am saving at least a third of my previous non Skype costs and I always have a free incoming line as I still keep on my PSTN line
Len_H
Leonard Heitt, Laguna Woods, USA California
I can only speak on issues I am familiar with in the states but I signed up for a year of SkypeOut for $30 and can call anywhere in the US and Canada w/o any additional charges. I have not heard if there are any similar deals for the UK.
Sean, Detroit, MI, USA
I can call any non cell no. in US or Canada for 1 year for $30 -- actually I got in on the $15 deal a week or so ago. I call UK, Ireland, and many other lands for a little over 2 cents a minute with a piddling connection/service charge. The interface is moderately intuitive, buisiness-like and direct. Compared to what I used to pay to call Ire or Eng, it's peanuts.
You're quibbling about a few cents a minute for this user.
I'm happy w/SKYPE.
Dan, NYC,