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Handset Offer May Propel Microsoft's VoIP Efforts

Handset Offer May Propel Microsoft's VoIP Efforts


VoIP phones from Uniden America and Royal Philips will be offered to more than 200 million MSN Messenger users this spring, Bill Gates announced at CES this week.


When Microsoft (NSDQ: MSFT) switches over its more than 200 million MSN Messenger users to Windows Live Messenger, the users will have cordless dual landline-VoIP phones from Uniden America and Royal Philips Electronics available for use, according to Microsoft.

Announced this week at CES by Bill Gates and the manufacturers of the phones, the deal will quickly move Microsoft and its VoIP partner, MCI, to the vanguard of VoIP calling and into a strong position to compete with eBay (NSDQ: EBAY)'s Skype, the current VoIP leader. Skype has more than 65 million active users of its Internet calling service.

On Thursday, a Microsoft spokesperson said Windows Live Messenger is currently in "limited Beta in the U.S. and the U.K. Other markets will be added soon." He noted that Windows Live Messenger 8.0 is scheduled to be released later this year.

Similar to a brace of VoIP phones announced at CES this week for use with Skype, the Uniden and Philips phones are aimed at placing Microsoft-MCI users on a par with Skype.

The 5.8GHz Uniden phone, the WIN 1200, is a digital cordless handset that has traditional landline capability as well as VoIP capability. The service with Microsoft offers free PC-to-PC calling through Windows Live Messenger while the MCI Web Calling feature will enable PC-to-landline outbound calls. Callers may also use the device for traditional landline service. The feature utilizing MCI, a Verizon Communications unit, carries charges of a few cents a minute.

Users of the Uniden phone will be able to place three-way Internet conference calls, and callers will be able to see the online status of other Windows Live Messenger users. Scheduled for availability this spring, the Uniden phone will carry a suggested retail price of $99.99.

The Philips VoIP433 phone will also debut this spring in European, Asian Pacific, and Latin American markets. Capabilities and features similar to those offered in North America, including MCI Web Calling, will be available for the Philips phone through Windows Live Messenger.

Microsoft has been moving aggressively to stake out a position in VoIP.