Microsoft on Wednesday directly challenged Google in the burgeoning internet telephony market by buying Teleo, a firm that allows users to make calls from their computers to normal telephones.
Microsoft’s entry into internet telephony follows the launch earlier this month by Google, the world’s leading search engine, of Google Talk, an instant message and voice chat service to compete with the likes of AOL, Yahoo and Skype.
With 51-million registered users and more than two million customers who pay for services such as voicemail and connections with outside phone numbers, Skype currently holds the lead in internet telephony, also called voice over internet protocol (VoIP).
Google, Microsoft, AOL and Yahoo all offer voice calls between computers, but not to outside phone lines.
The Teleo acquisition gives Microsoft a boost in its race with Google, Skype and other telecommunications companies, including BT.
”Given that the space is so hot at the moment in terms of activity, the competition is going to be great for customers,” Will Collins, global product manager for MSN Messenger, told The New York Times.
Microsoft did not disclose the financial terms of the transaction. Collins said that MSN Messenger PC, the Microsoft chat software that includes some voice features, would be the first offering to adopt some of the features that come with the purchase of Teleo, which is only two years old.
Teleo’s click-to-dial feature is already compatible with Microsoft’s Outlook software. Users can click on a phone number in those programs, and Teleo dials it. — Â