IT Observer - AOL plans to launch VoIP service

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AOL plans to launch VoIP service
Wednesday, 09 March 2005, 13:03 GMT

According to Jonathan Miller, AOL chairman and CEO, AOL will launch its own Voice-over-IP service next month.

According to Internet Week, AOL Internet Phone Service is expected to have the same look, feel, feature set and functions as its popular Instant Messaging (IM) product. Similar to its rivals Yahoo and Microsoft, AOL already offers voice chat as a free feature of its IM platform.

"We believe that this is the right time ... there is electricity in the air and in this case it is carrying our voice," Miller said. "It puts the power back in people's hands and gives them the ability to screen and select calls... the ability to be seen, not be seen.... and the ability to switch instantly from an instant messaging to a phone call."

Among the others aggressively rolling out VoIP are long-distance provider AT&T (Quote, Chart), regional operator Verizon (Quote, Chart) and well-funded start-up Vonage.

AOL's announcement comes as VoIP is gaining in popularity. Analysts with JupiterResearch estimate VoIP telephony services will grow to 12.1 million households by 2009, representing about 10 percent of all U.S. households. Additionally 17 percent of all U.S. broadband households will use a VoIP telephony service in 2009, up from 1 percent by the end of 2004.

AOL's product may drastically differ from its competition in that the company has indicated it will charge customers a monthly fee instead of a per-call model.

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