Call phones from Gmail

August 25, 2010
Source: Official Google Blog: Call phones from Gmail

Calls to the U.S. and Canada will be free for at least the rest of the year and calls to other countries will be billed at our very low rates.

Google is taking on Internet telephone companies like Skype/eBay by allowing users to call from its free web-based email service.


Just like video chat, the new voice service has been integrated directly into the Chat window, with voice cancellation technology to minimize echo effects. Users can make international phone calls, but with the exception of Canada, calls to anywhere else will cost you.

But not that much. Google looks to be targeting other cheap VoIP sites (read: Skype) with its low cost pricing. For example, a call to France cost $0.02 per minute. Within a few weeks, interested users can purchase calling credits via Google Checkout. Google brings Voice into Gmail with free calls to U.S., Canada - but what else it can bring?

Competition

Yes, the first who will be directly targeted by this new competition is Skype. Skype, which is the most successful Internet phone offering, claims to have over 560 million registered users. The firm said 124 million used the service at least one a month while 8.1 million were paying customers.

Google is taking on Skype and the rest of the telecom world.

What will be the impact on rest of telecom is hard to estimate, but it is no doubt it will be. More people will start moving from traditional land lines to VoIP. That definitely will impact negatively phone service providers, but it wont be last too long. To compensate themselves ISPs can increase prices for data plans, limit bandwidth and increase charges for exceeded data usage.

In a short term the benefits are clearly towards consumers, but not for a long term. There is nothing free in our world and we as consumers should pay for it.

Another potential negative side is Google likes data. How Google will use data collected from your calls and your voicemails, and will get access to it?