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New Players, New Business Models For VoIP

"Old" Web companies are getting into the Voice over Internet Protocol game, coming up with some interesting business models in the hopes of competing in the ever-crowding market. Lycos, the Web-based portal now owned by Spanish telco giant Telefonica SA, is launching a new Windows-based VoIP program that provides free calls to phones when users sign up for promotional offers for credit cards or other services, like the online DVD subscription service Netflix. Lycos' software also shows banner ads. Those who choose not to sign up for the promos will be charged 1 cent a minute for domestic calls. The Lycos phone app also offers movie previews, PC-PC video calling and text messaging. Another VoIP company, called Jajah, offers a cheap for-pay PC-to-phone calling software that attempts to simplify the process. Users go to the company's site and enter two phone numbers, their own and the number they're calling; the company first calls the user and then the receiver. Once the call is answered on both sides, the phone lines are connected. The service isn't limited to Windows or certain Web browsers, and it doesn't require a computer microphone. Domestic calls cost about 1.7 cents per minute; an overseas call could cost as little as 1.9 cents a minute.

Read the whole story at Associated Press »

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