Will Yahoo ever be able to compete with Skype?

Will Yahoo ever be able to compete with Skype in the internet telephony market? According to some analysts, yes. The total population using VoIP calling service is still very low despite its rapid rate of growth. This leaves a wide open market for a company like Yahoo to offer its service.


On Wednesday, Yahoo introduced a public beta of its instant messaging suite with voice capabilities. Buyers can now obtain a telephone number in any city they should choose for only US$2.99 a month.

“The good news for Yahoo is that Skype — and eBay’s purchase of Skype — raises the visibility of the market overall and has customers intrigued about what this technology can do. So Yahoo can sort of ride along with eBay’s marketing of personal Internet telephony,” Willis told TechNewsWorld.

With a monthly charge 1$ less than Skype, Yahoo Messenger with Voice is now a fierce and legitimate competitor. Yahoo will charge two cents a minute for domestic calls in addition to the $2.99 monthly fee. Charges for calls made towards 180 other countries will vary.

Voice over Internet Protocol technology, utilized by Yahoo’s service, allows users to make calls from PC to regular phone, mobile phone or another PC. PC to PC calls will not be charged and all received calls are free.

“Yahoo’s top priority is to provide a stellar communications service through a variety of easy, fun and inexpensive ways to stay connected with others around the world,” said Brad Garlinghouse, vice president of communications products at Yahoo.

Both MSN and AOL are testing and planning to release a product some time in the year, Yahoo has released itself to the VoIP market. It’s price and integrated approach will help keep them on top of upcoming competitors, says Yahoo. Yahoo Messenger with Voice includes text IM, PC-to-PC calling, e-mail, mobile text messaging, photo sharing and video.

“We look forward to further incorporating voice features into Yahoo’s global services, from communications to search, to help simplify and improve the Internet experience for our hundreds of millions of users around the world,” Garlinghouse said.

Summary

On Wednesday, Yahoo introduced a public beta of its instant messaging suite with voice capabilities. Buyers can now obtain a telephone number in any city they should choose for only US$2.99 a month.


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