Internet Telephone Service

Yahoo Adds VoIP Feature to New Version of Messenger

May 24, 2005

Yahoo is jumping on the VoIP train offering Internet phone services to Yahoo Messenger 7.0 users. Those who download the new and updated version of Yahoo Messenger can now talk live PC to PC with users who are on their contact list and who also have the updated version of Yahoo Messenger. Currently, users cannot call landlines or people not on their contact list.

Users will be able to use the chat and new phone feature at the same time but would only be able to call one person at a time. Users decide how they would like to be contacted by others, chat only, VoIP, e-mail or text messages through cell phones. The new VoIP phone feature offers many extras including voice mail and ring tones. Yahoo Messenger 7.0 also features photo sharing, music and more.

Currently AOL and MSN Messenger offer similar features. Skype also offers VoIP and chat to their customers. Skype has the edge by offering VoIP calls to land lines for a fee. The competition is head to head with the IM providers and AOL is in the lead with over 20 million users.

Will Stofega, VoIP research manager at IDC feels, "The real power of this stuff is being able to customize and choose services you need to get messages anytime and anyplace," and he projects worldwide consumer IM accounts will exceed 250 million by 2008.

Frazier Miller, director of product management for Yahoo Messenger stated, "For the foreseeable future, PC-to-PC calling is where we feel there's real adoption. In the long term, there will be many ways to drive direct value."



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