Microsoft and MCI are launching a VoIP service that allows users to call any telephone from their PC in a move to keep up with the growing VoIP market represented by eBayﾴs Skype division, Yahoo Messenger, Google Talk, AOLﾴs AIM Triton, Vonage, in addition to cable and telephone companies.
Known as MCI Web Calling for Windows Live Call, the service will be part of Windows Live Messenger, the successor to Microsoftﾴs instant messaging service MSN Messenger. It blends MCIﾴs existing VoIP network service with Microsoftﾴs software.
Microsoft already has 185 million users signed up for MSN Messenger, which should give it a large potential base of users that rivals other instant messaging services such as AOL Instant Messenger and Google Talk (see AOL Upgrades IM).
They have also added VoIP features, but only for calls to other users connected to the same instant messaging program on their PCs.
Like eBayﾴs SkypeOut service, Microsoft and MCI are selling the PC-to-phone VoIP service. Customers will be able to buy prepaid calling cards in $5, $10, and $15 blocks for use with the service.
The service will allow a user to call both landline and mobile phones just by clicking on an entry in the userﾴs contact list.
Shares of Microsoft were down $0.40 to $27.05 in recent trading, while shares of MCI were down $0.05 to $29.50.
Expanding Internationally (but not in The Bahamas)
Ashburn, Virginia-based MCI and the Redmond software giant are testing the service as part of a limited beta program, the companies said Monday. Subscriptions are initially available in the United States.
In the next few weeks, they expect to expand the service to France, Germany, Spain, and the United Kingdom.
Users will be able to place calls at rates starting at $0.023 per minute to the U.S., the U.K., Canada, and Western Europe during the beta test period. Eventually they will be able to call more than 220 countries.
Customers will receive up to an hour of free calls when they sign up during the beta period. The final pricing will be determined when the service officially launches in 2006. SkypeOut charges just over ﾀ0.01 per minute, or about $0.02, the same as the new Microsoft-MCI rate.
Yahoo introduced a service last week, however, that will cost $0.01 or $0.02 per minute for calls from a Yahoo Messenger user on a PC to a phone (see Yahoo Raises Voice at Skype).
Nevertheless, both Microsoft and MCI think their service will draw customers new and old.
ﾓOur new Windows Live PC-to-phone voice feature requires a partner that shares our vision for connecting people globally,ﾒ said Blake Irving, corporate vice president of the MSN Communication Services and Member Platform group at Microsoft. ﾓOur customers are going to love this.ﾒ
ﾓThis is a terrific example of the expanded MCI and Microsoft strategic relationship as the two companies continue to develop and deliver next-generation services for our customers,ﾒ said Patty Proferes, senior vice president of Mass Markets and Corporate Advertising for MCI.
From: Red Herring
www.redherring.com
