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March 22, 2006


Yahoo Tuesday launched a PC phone service used in conjunction with its Yahoo! Messenger service. Those signing up can receive unlimited domestic calls for $2.99 a month or $29.90 a year. You can also purchase prepaid voice credit in $10 and $25 increments.

To use the new services you'll need to download the new client (available at http://messenger.yahoo.com). Calls have to be initiated from a PC, but can be made to traditional landline phones and cellphones. Yahoo customers can also receive calls from regular phones, explains USA Today.

Yahoo will charge 2 cents a minute for domestic calls, on top of the monthly $2.99 fee. Per-minute charges to 180 other countries will vary. It won't charge to receive calls.

Yahoo is undercutting Internet telephone leader Skype by about $1 monthly for such PC-to-phone service.

Yahoo Voice and Skype both offer PC-to-PC calls for free, as do instant-messaging services including America Online's AIM, Microsoft's MSN Messenger and Google Talk.

You need a headset with microphone to make calls or a PC with a built-in microphone and speakers.

MSN is now testing a PC-to-phone service. AOL says it will have PC-to-phone calling available later this year.

Yahoo Vice President Brad Garlinghouse says what sets Yahoo's service apart from competitors' is "aggressive pricing," and the fact that the calling services are entwined in Messenger and the Yahoo network.

Unlike Skype, which is pure calling, Yahoo offers e-mail, instant message, news headlines and many other features.

"Phone service for $2.99 monthly won't make people run out and replace their traditional phones. But, "we see a continual chipping away at the traditional model," says Maribel Lopez, an analyst with Forrester Research. "And this really hurts the future phone business."


Originally posted by sam from Daily Wireless, remediated by yatta on Mar 22, 2006 at 09:52 AM


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