Yahoo VoIP promises to be cheaper than Skype

In the run-up to its full-fledged VoIP launch, Yahoo Inc has disclosed the prices for its PC-to-phone services, which would undercut Skype Technologies SA.

Yahoo has promised a new version of its Yahoo Messenger communications software since June, when it bought six-year-old VoIP service provider Dialpad Communications for an undisclosed amount. But a spokesperson yesterday confirmed the release is imminent.

The new service will include Phone Out, which enable users to place VoIP calls to traditional phones, similar to SkypeOut. Yahoo also will launch a Phone In service, which enables VoIP users to receive traditional phones calls, al a SkypIn.

The kicker is Yahoo Messenger calls to the US would cost half that of Skype's 2.1-cents-a-minute rate. Yahoo spokesperson Terrell Karlsten said it would charge one cent per minute for VoIP calls to the US.

And calls made to more than 30 international countries are expected to cost less than 2 cents a minute with Yahoo, she said. That includes the UK, China, Australia, France, Germany, Italy, Japan and Korea, Karlsten said.

The company plans to launch a localized version of the service in a handful of countries, but not everywhere, Karlsten said.

Yahoo's Phone In service, which allows users to select their phone number, is expected to cost a flat rate of $2.99 per month or about $29.90 annually. That's in line with the SkypeIn 12-month subscription price of 30 euros (or roughly $35), or 3 months for 10 euros (about $11.80).

Of course, Skype has two year's momentum in the VoIP space under its belt already, with about 68 million customers globally. Several million of those customers use Skype Out.

Yahoo has offered limited voice calling on its Messenger service for the past five years, but it has not been well received. Still, more US consumers are familiar with the brand Yahoo than they are with Skype.

Yahoo's new service will be based on Dialpad's technology, in addition to developing our technology in-house, Karlsten said.

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