Skype isn’t the only free service

Opinion
May 24, 20062 mins

* VoIP services from AOL and Yahoo

In our last newsletter, we reported that Skype has introduced free outbound VoIP-based domestic calling. Today we’d like to observe that while this is the only outbound “free” calling service, it isn’t the only VoIP-based and PC-delivered free service. AOL recently announced that it is offering a free local phone number that allows AOL Instant Messenger users to receive free incoming calls and use a free online voice mail service. The service also includes a Caller ID capability.

When AIM users are online they can use the Caller ID to screen and either answer the call or send it to voice mail. Users also have the option to have the voice mail system notify their cell phone that they have a message waiting.

Like Skype’s service, the AOL Phoneline service is targeted as a second line. Unlike Skype’s service users don’t get free outbound calling – to make outbound calls users need to pay an introductory price of $9.95 per month to get unlimited calls within the U.S. and Canada. The fee-based service also includes nomadic E911 support.

AOL has partnered with Broadwing Communications to provide the phone network features, such as PSTN integration and number management. AOL uses Telchemy’s technology to provide VoIP performance management and has partnered with Plantronics to offer PC-based plug-and-play headsets.

For more information on the AOL Phoneline service, go here.

Please note however, that this information is based on AOL’s announcement, and we have not yet had a chance to test this new capability extensively. In fact, in a very quick test of the AOL inbound capabilities, Steve encountered several problems. By contrast, the outbound Skype product worked well, and it really only represents a pricing change to an existing technical capability.

The bottom line is that AOL’s free offering is inbound, and Skype’s free offering is outbound. In the near future, we’ll do some more testing and give you a more complete summary of our comparisons, including services offered by Yahoo. Yahoo offers free PC-to-PC calls with its Yahoo voice Phone In service, although Yahoo charges $2.49 for a local phone number. Yahoo’s Phone Out service provides outbound PC-to-phone calls that are usage-based, starting at less than 2 cents per minute.

For more information on Yahoo’s voice services go here.