Microsoft Skype battle starts with Windows Live Messenger

Stan Beer
Tuesday, 20 June 2006 08:48

Your IT - Home IT

The launch today of Microsoft's Windows Live Messenger service signals a no holds barred effort by the software company to carve a large slice for itself of the burgeoning internet telephony market. Aside from its instant messaging (IM) function, the new service offers voice and video calling features that go head-to-head with the eBay owned Skype service.

Like Skype, Windows Live Messenger, available at http://get.live.com/messenger/overview, offers free PC-to-PC calls and inexpensive calls from a PC to phones around the world, video calling, and easy file sharing.

"Windows Live is all about giving consumers the tools and services they need to be in control as they stay connected to the people they care about, on top of the information that is important to them, and better protected across all their online activities," said Martin Taylor, corporate vice president of Windows Live and MSN at Microsoft. "The launch of Windows Live Messenger represents a significant 'down payment' on the Windows Live vision and an important milestone for the business. We're proud and excited to release this product to consumers, who have helped shape the service during our beta process so we could deliver an experience that unifies their online communications experience across voice, video, sharing and more."

Microsoft is also touting Windows Live messenger as a window to the Internet, connecting people to their e-mail, blogs, search and other Windows Live services.

Early reports suggest that the free, synchronized audio and video service in Windows Live Messenger, which allows users to view and talk to each other in full-screen video, is comparable to the service offered by Skype 2.0. Likewise, the Verizon Web Calling VoIP service for contacting non-internet telephones goes up against the SkypeOut service, offering similar functionality.

Microsoft announced its new LifeCam webcam range last week, no doubt timed for the release of Windows Live Messenger. There will also be a range of third party cordless phones compatible with Windows Live Messenger in the US and Europe from companies such as Uniden, Philips and Motorola.

While the file sharing and messaging features of Windows Live Messenger will be of interest to users, it is the telephony functions that promise to capture the public imagination. Skype has caught on around the world like wildfire and eBay, which paid at least US$2.6 billion for the company, has launched an aggressive campaign to build its North American user base, offering free SkypeOut calls at least until the end of 2006. With more than 240 million IM users, many of them in the US, Microsoft has the front running over the fast growing Skype, which has just over 100 million users. It remains to be seen whether Microsoft can maintain that lead with Windows Live Messenger.