Yahoo starts offering PC tp phone service to compete with SKYPE.
AS VEGAS (Reuters) - Yahoo Inc. on Tuesday said it
is launching a service in the United States that
lets people make phone calls through the company's
instant messaging software.
Available in several other countries since
December, the service allows people to make calls
from their computers for 2 cents a minute or less
to the top 30 national phone markets, including the
United States.
The "Phone Out" service also allows calls from
computers to regular phones at varying rates to a
total of 180 countries.
Using instant messaging for phone calls is one of
the latest ways that technology companies are
finding cheaper ways to allow people to talk all
over the world without relying on traditional phone
networks.
"Right now the competition is just about cheap
voice calls," Forrester Research analyst Maribel
Lopez said.
The move also attempts to undercut rates offered by
Skype, a similar service offered by eBay Inc..
Yahoo Messenger with Voice rates average between 20
percent and 30 percent lower than Skype to many
major markets outside the United States, according
to a comparison furnished by Yahoo.
Tests in the initial five countries where the
service launched proved more successful than
anticipated, especially in France, said Yahoo Vice
President of Communications Brad Garlinghouse,
where strong demand for both Yahoo Phone In and
Phone Out services occurred.
Phone In allows customers to receive calls on their
computers from regular and mobile phones for $2.99
a month, or $29.90 a year.
Yahoo's service is one among a growing list of
competitors, including Time Warner Inc.'s America
Online as well as Microsoft Corp..
While initially the focus is on offering cheap
phone calling for computer users, the battleground
should quickly shift onto mobile and cordless
phones, analysts said.