AOL and Microsoft Embrace VoIP

Fresh off eBay's acquisition of VoIP giant Skype, other technology industry giants are unveiling their own VoIP plans. AOL will launch a new phone service called TotalTalk Net on October 4. TotalTalk will use AOL's IM client to provide phone service via the PC or home phone, as well as the ability to send and receive email and instant messages. The company will offer both a PC-to-phone adapter and a broadband router with phone adapter. The new service will provide monthly plans that start at $18.99 for unlimited local calls, $29.99 for unlimited domestic long distance, and $34.99 for unlimited domestic long distance and discounted international calling. TotalTalk will include all the traditional features of phone services today, including call waiting, caller ID, three-way calling, and voicemail integrated with AOL's email. Competing with AOL's solution will be a new partnership between Microsoft and Qwest. The two companies are working to enhance Qwest's OneFlex VoIP service. Qwest will use Microsoft's Solution for Enhanced VoIP to integrate its service with email, IM, collaboration services, and other desktop applications. More information about these solutions will be available next year.