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Skype launches Internet->Landline service

Submitted by Karthik on 26 July, 2004 - 20:51

Skype, makers of free PC-to-PC VOIP software, have now introduced a new service named SkypeOut, which allows (for a charge), Net-to-phone capabilities as well.

Customers of SkypeOut, as the service is called, download free Skype software and then create an account of $12 (10 euros), $30 or $62 worth of voice minutes. The accounts are charged at rates depending on where the call originates and which region is being called.

"In a server-less environment, you can increase in size indefinitely without adding cost," Frost & Sullivan analyst Jon Arnold said. "That's a scary proposition if you're a phone company."

SkypeOut is also likely to attract more attention for Skype from U.S. regulators, which are now drafting Net phone rules due in about three months that are expected to provide a light touch but still demand that VoIP providers contribute to services such as Universal Service.

ZDNet is carrying this piece.