Thursday, December 15, 2005

Microsoft: jumping into the VoIP fray

Microsoft has announced plans to release its first beta version of Live Messenger with VoIP

Microsoft has staked a claim in the US VoIP market by announcing its software users can soon make Internet calls to standard phones thanks to a new partnership with MCI. Although rival products from the likes of Yahoo and Skype offer extra features, given Microsoft's broad market reach elsewhere and its alliance with MCI, this should not affect the company's foray into VoIP in the longer term.

The MCI Web Calling for Windows Live service will be available in the first half of 2006. Essentially, it combines MCI's existing VoIP offerings with Microsoft software.

The service will be available via Windows Live Messenger, the upcoming successor to Microsoft's existing instant messaging (IM) service. At 2.3 cents per minute, it will undercut rates from MCI, which is being acquired by Verizon Communications.

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