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More VoIP Competition

27th Mar 2006, 22:56 GMT

The Internet telephony market is getting more crowded as two more companies launched new services in the U.S. market on Monday, reports C/Net: Internet search portal Lycos, owned by Korean company Daum Communications, began offering its Lycos Phone service. And Jajah, a start-up with backing from Sequoia Capital, a major Silicon Valley venture capital firm, launched its VoIP (voice over Internet Protocol) service in the U.S., after several months of offering it in Europe. The two newcomers are entering an increasingly crowded market with players such as eBay's Skype, America Online's AIM, Google Talk, MSN Messenger, Yahoo Voice and EarthLink Voice already fighting for a piece of the market. But Lycos and Jajah are betting that consumers will value how they've differentiated themselves from the pack. Lycos says its biggest differentiator is its multimedia offering. In addition to free PC-to-PC calling, instant-message chatting and video chatting, Lycos Phone offers video on demand and an MP3 player. Globe7, which is partnering with Lycos, provides access to video content from Reuters and Bloomberg, as well as movie trailers and sports highlights. Lycos is also trying to differentiate itself by undercutting its competition. Like other companies offering PC-based VoIP services, Lycos charges for calls made from PCs to regular telephone lines or mobile phones. As a promotion, it's offering 100 free minutes of PC-to-landline or PC-to-mobile phone calls. Wikipedia and Om Malik have more on Jajah. Streamcast has sued Skype, claiming that it had the first dibs on the technology which became part of Skype, explains Malik. DailyWireless has more on internet phone competitors.

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