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Thursday, August 18, 2005

Yahoo readies new VoIP service

Yahoo Inc is readying to capture a larger piece of the VoIP market and one analyst said it would announce a new VoIP product during the next two weeks.

The new service would be comparable to Skype Technologies SA's, said Safa Rashtchy, senior research analyst at Wall Street researcher Piper Jaffray Co, which makes a market in Yahoo stock.

"VoIP is fast becoming the new killer app of the Internet and this move should push Yahoo ahead of its competitors," Rashtchy said in a research note.

Yahoo is planning to become a full-service VoIP provider, but declined to give a timeline on new product announcements beyond "coming months," said spokesperson Terrell Karlsten.

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