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Monday, December 12, 2005

Yahoo! plans to shoot Skype with Messenger

Internet media giant Yahoo! has fired the first salvo in a pricing war with Skype with plans to introduce a new internet voice service within days.

Yahoo! is releasing an upgrade to its popular Messenger text, voice and video communications software with the addition of a feature that's familiar to Skype's 68million worldwide users.

"Phone out" will let people make calls from computers to regular telephones while "Phone in" will let computer users receive telephone calls. The service mirror's Skype's equivalent service, named "Skype in" and "Skype out."

Yahoo! said it would undercut Skype's pricing plans for the telephone services, charging just 1¢per minute to people calling the US from countries such as Russia. It will charge 2¢ a minute to call 30 other countries, including Australia, China, France, Germany, Italy, Japan and Korea.

A Yahoo! spokeswoman said it would make the Yahoo! Messenger service available in 180countries, with downloads available from, although as of late on Friday the site was yet to go live.

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