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Yahoo! Plans VoIP Service

Yahoo! has offered free computer-to-computer voice chatting for many years, through its instant messaging and chat services. Recent versions of Yahoo! Messenger have upgraded what used to be a walkie-talkie communication style to full duplex ability, encouraging a more normal conversation style. Now, Yahoo! reportedly is set to introduce computer-to-phone calling to its IM users at a penny per minute. Details are sketchy, but tying the service to IM implies that Yahoo! will not be directly challenging Vonage, which supplies a router so its customers can make calls on standard phones. This thing will not be a pure VoIP play, but it'll be a lot purer than anything Yahoo! has tried before. The real competitive challenge is to Skype, which eBay recently acquired for 2.6-billion dollars. For the record, if Skype matched Yahoo!'s anticipated penny-per-minute pricing, it would have to service 2,600,000,000,000 minutes of calling time to earn back the investment. That's 2.6-trillion minutes.

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