Yahoo Inc. following a growing number of internet companies is now set to make calls between PCs and fixed line phones a part of its offering in an arena that is fast expanding beyond voice. A natural expansion of its communications offering that till now consisted of mail, instant messenger and blogs, Yahoo now seeks to challenge Skype in a turf where it is a lead player.
Expanding beyond the core areas of web search and entertainment, Yahoo has taken the route most Internet companies have taken to grow their businesses. Yahoo by lowering prices is actually seeking users of its popular instant-messaging application to go beyond messaging to voice calls. While the software for placing and receiving calls remains free, the service comes at a yearly subscription of $29.90 and necessitates a speedy Internet connection besides a prepaid Yahoo account.
Like Skype, Yahoo too offers PC-to-PC calls for free while PC-to-phone calls are charged. However the company intends to undercut Skype with a cent lesser charge for a minute-long call to a phone. Skype with 216 million users of its software around the world is however an established player.
Though Yahoo retails co-branded Internet service through phone companies, this new phone service opens up opportunities to link e-mail and home voice mail or the possibility of adding ring tones to the home phone. Available shortly on a trial basis to users of its instant-messenger across 180 countries, the service targets a large chunk of the expected 27 million users in North America who take to Internet calling by 2009.
