Yahoo Competes with Skype and Google with their own VoIP Service

December 10th 2005

Yahoo! is planning on implementing a new VoIP (voice over Internet protocol) service to compete against Skype. Yahoo acquired Internet VoIP service Dialpad back in June.  In September eBay acquired VoIP operator Skype explaining that this could help facilitate sales, specifically international sales.  Buyers could actually converse with each other before bidding on an item.

The service will be available in 180 countries and will integrate Yahoo e-mail and instant messenger service features.  According to Networking Pipeline computer to computer calls will be free.  I used Dialpad when it was free back in 2001 and was able to call any phone number in the US for free using my computer.  Later Dialpad became a pay service.

The service should cost users $0.01 per minute for calls to the US using the Phone Out service.  It is expected to cost even less for calls to more than 30 countries including Argentina, Australia, China, France, Germany, Italy, Japan, and Korea.

Yahoo will offer Phone In service that allows users to receive calls on a PC from land lines or mobile phones.  This will cost $2.99 per month (or only $29.90 per year).  Yahoo will also offer pay-as-you-go credit in $10 and $25 increments.

Previously Yahoo has offered a voice over Internet service with their Instant Messenger.  Both receiver and sender have to have the free IM service.  Within a few days Yahoo is going to open their VoIP service according to PC Pro News. 

Yahoo competitor Google has a Click to Call service where searchers can connect for free to advertisers that display a small phone icon.  This is the way it works:  When you click the icon Google will offer to call the number for free.  After you input your number Google then calls you and when you pick up the receiver you will hear the phone ringing on the other end.  Google connects you to the advertiser for free and blocks your number from them.

It seems like everyone is getting into the VoIP business. AOL Time Warner and Vonage is offering a paid Internet phoning service in the US.  Each firm claims to have over 1 million subscribers.    

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By Dan Wilson
Best Syndication Staff Writer

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