Microsoft, MCI To Add PC-To-Phone Calling To MSN Messenger

Microsoft and MCI said on Monday they are teaming up to extend the reach of MSN’s instant-messaging service into the crowded global computer-to-phone call market. The deal will allow consumers to place calls for as little as 2.3 cents a minute — undercutting rates MCI offers existing customers — and highlighting the challenge Web-based calling poses to voice-based telephone businesses.

The new service - MCI Web Calling - is to be part of Windows Live Messenger, which is due to succeed Microsoft’s MSN Messenger service. Punters looking to use the service will need to pay for calls in advance in blocks of $5, $10 or $25.

The Register - MSN and MCI do VoIP

The announcement comes less than a week after search competitor Yahoo! launched its own PC-to-phone VoIP service via its Yahoo! Messenger service and only a few weeks since Google introduced its Click to Call VoIP feature for its advertising network.

PCPro - Microsoft adds PC-to-phone service to MSN Messenger

The latest versions of MSN Messenger and other instant messaging programs already let people talk to each other from computer to computer. There are also low-cost Internet phone providers like Skype Technologies SA, acquired by Internet auction house eBay Inc. in October, which give away software that lets people talk for free over the Internet using computers and microphones.

Associated Press (Yahoo)- Microsoft, MCI Plan PC-To-Phone Service