Overhype

Overhype

by Carlo Longino





AOL Announces New VoIP Offering (That Probably Didn't Cost $4.1 Billion)

from the voip-hype dept

AOL has announced its consumer VoIP offering: which comes off sounding like a cross between Skype and Vonage. They've beefed up the VoIP capabilities of AIM, and inegrated the IM client with a broadband phone service that -- unlike SkypeOut -- doesn't force subscribers to make all their calls through a PC. While Skype makes PC-to-PC calls easy, SkypeOut doesn't easily integrate with the home phone people are used to using. AOL's figured all this out without dropping $4 billion, and has a much clearer plan than Skype to actually make money. If eBay wants to turn Skype into a phone company, it's unclear why they needed to drop so much cash. If they plan to just use it to add voice service to their auctions, it's, um, unclear why they needed to drop so much cash. Of course, at the same time, it's still not clear why AOL appears to be launching a product that competes with their sister company, Time Warner Cable, who already offers a popular VoIP offering. Why not have the two work together?

4 Comments | Leave a Comment..

 

Reader Comments (rss)

(Flattened / Threaded)

  1. No Subject Given

    by J Surdilla - Sep 20th, 2005 @ 3:17pm

    Maybe to see which one would be a better plan.

    (reply to this comment) (link to this comment)

  2. Re: No Subject Given

    by Anonymous Coward - Sep 20th, 2005 @ 4:20pm

    Or maybe because they're well aware that AOL is about ready to be tossed on its ass unless it can show some serious contributions to Time-Warner.

    (reply to this comment) (link to this comment)

  3. Re: No Subject Given

    by Anonymous Coward - Sep 20th, 2005 @ 6:23pm

    Actually AOL throws a lot into Time Warner's coffers - it's a classic cash cow.

    (reply to this comment) (link to this comment)

  4. No Subject Given

    by Greg Andrew - Sep 21st, 2005 @ 9:08am

    Time Warner's VOIP is tied to their cable division, and is very different. You use your old phones and wiring and can't take your phone and use your VOIP on trips like you can with VOnage. AOL's plan is similar to Vonage's.

    So it wouldn't have made sense to tie the two together. Besides if AOL gets sold, they would need to sell the new service along with AOL.

    (reply to this comment) (link to this comment)

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Plain Text HTML Save me a cookie
  • Plain Text: A CRLF will be replaced by break <br> tag, all other allowable HTML is intact
  • HTML: No formatting of any kind is done without explicitly being written in
  • Allowed HTML Tags: <b> <i> <p> <a> <em> <br> <strong> <blockquote> <hr> <tt>
Close
Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Plain Text HTML Save me a cookie
Search Techdirt
And now, a word from our Sponsors..
Subscribe to Techdirt's Daily Email Newsletter

Techdirt's Daily Email Newsletter

Related Stories
Close
E-mail It