Yahoo Launches VOIP Service     
MARCH 22, 2006  
        
http://www.lightreading.com/document.asp?doc_id=91268&print=true        

Yahoo Inc. (Nasdaq: YHOO - message board) has launched its paid PC-to-phone 
VOIP services -- called Phone Out and Phone In -- for users of its 
Messenger application, and is now playing catchup with Skype Technologies , 
which launched its revenue-generating IP telephony services in July 2004. 
(See Skype Calls Out, But Is the Pope In? .)

An official launch announcement of the Yahoo services is expected later 
today, but they are already available at this site. Like the Skype 
services, users set up a pre-paid account and then run down their credit by 
making calls.

The services, which have been expected for a few months, follow Yahoo's 
purchase last year of VOIP firm Dialpad. (See Yahoo Jumps Into Voice and 
Yahoo Enters VOIP Fray).

And the per-minute rates for the Phone Out service (calls from your PC to 
fixed and mobile numbers) are, as you'd expect, rock bottom -- just 1 cent 
per minute to call any number in the U.S. (unless it's directory 
assistance, then it's 8 cents per minute), and the same rate for Canada and 
London (it's 1.5 cents per minute for other U.K. fixed lines, and 17 cents 
per minute for U.K. mobile/cell numbers).

The Phone In service, where the user gets a regular phone number, initially 
only covers certain phone code areas in the U.S., France, and the U.K., but 
anyone can use those numbers, no matter where they are based, as the number 
is tied to the Yahoo Messenger account and not a physical line. It costs 
from $29.90 per year for each numbered account.

A free VOIP service between users of Yahoo's instant messenger service has 
been available for a long time, but the pressure is on all the players in 
this Internet user land-grab sector to add more and more features and 
enable interoperability with existing communications systems and each 
others' platforms. (See Skype's Still Talking to Itself, Microsoft Buys a 
Second VOIP Firm, Google, SIPphone Hook Up, AOL/Google: VOIP Buddies , and 
MSN, Yahoo Link IM Services.)

Now the attention in the Internet and VOIP services sector will turn to 
Google (Nasdaq: GOOG - message board) to see if it follows Yahoo with an 
extension to its free Google Talk service. (See Google Clicks to the PSTN?.)

But Google is tight-lipped. "We never comment on anything until it's 
launched," says a spokeswoman. So is a Google Talk paid-for VOIP service 
due to be launched, then? "I didn't say that, and we can't add anything to 
that," she retorts.

— Ray Le Maistre, International News Editor, Light Reading



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