Yahoo to Conquer Skype With VoIP IM Service

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.
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Summary

Will Yahoo ever be able to compete with Skype in the internet telephony market? According to some analysts, yes.


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Comments

Yahoo! sucks. After all these years of running their website and services on free open source software, their support of those technologies and the people who create and support them is dismal.

Thanks for nothing Yahoo!, you are just another Microsoft Ho!

Bar

Posted by CD Baric on March 22nd, 2006 at 4:35 pm

$1.99, $2.99, $3.99. It will not matter. You still need an internet connection, and a high-speed one. Who provides that? Either the phone company or a cable company. You could use satellite, but there is a time delay that makes using voice calls trying. I have(or should I say pay for) 4 cell phones and still have my house phone and I don’t see that changing for the forseeable future. Since cell calls are made for long distance calls,I’ve blocked long distance availability on the house phone. I don’t see Skype, Yahoo, or whatever else comes along being used by anyone other than college students who have free fast-acess Internet connections. If wireless fast-access internet service reaches critical mass, the phone and cable companies will have a problem. But, if they were smart, they would be the ones pushing it because it will drive them from the market. Don’t let me be the person accusing (un)regulated monopolies of thinking of the future.

Posted by George Simpson on March 22nd, 2006 at 7:08 pm

What are you talking about with Skype charging $4 for service? Obvously not very well researched article.

Posted by Adam on March 23rd, 2006 at 7:22 am
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