AOL and Microsoft have both announced plans to launch new VoIP services.
AOL is targeting VoIP users outside its membership network for the first time with its new stand-alone VoIP service, TotalTalk. Microsoft, meanwhile, is taking aim at small- to medium-sized businesses with its VoIP service made possible by a partnership with Qwest.
Microsoft announced in June that it was partnering with Sylantro Systems to develop a VoIP service, for which Qwest is the first customer. In August, Microsoft acquired Teleo, the click-to-call features of which are likely to be integrated into Outlook and Internet Explorer. More can be expected from Microsoft on the VoIP front.
For AOL, TotalTalk is the company’s first deep dive into VoIP, after it released its members-only VoIP phone service in April. Although the last offering seemed more of a test-run as only about 10% of its subscriber base was thought eligible to use the service, now, with TotalTalk, AOL is going head-to-head with industry leaders such as Vonage.
VoIP may be a means for AOL to replace its shrinking core business of dial-up Internet service. However, while AOL’s timing to enter the mass-market VoIP is by no means too late for it to see customer traction, the market is becoming increasingly crowded with other big-name outfits.
Of course, AOL parent Time Warner, is one of AOL’s rivals, with its VoIP over cable offering, which analysts say has seen successful traction. Vonage, 8×8 Inc and Primus are also key competitors.
To stand out from the crowd, AOL offers extra features, such as a soft phone, at no extra charge. But perhaps the biggest weapon in both AOL and Microsoft’s VoIP arsenal is their established brand names. After all, despite leading the US VoIP market, Vonage is a less recognizable name among consumers than AOL or Microsoft. And a strong consumer following often precedes an enterprise audience when it comes to relatively new Internet-based technologies such as VoIP.
