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Google launches Phone Services on Gmail – Is this a threat to Voice Carriers?

Posted by Ajay Tejwani | Posted in Social Media | Posted on 08-28-2010

Tags: , , , , ,

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Well, here is another move that gets Google closer to their quest for world domination. Now, using Gmail you can call your friends and family on home phone or cellphone.

Calls to the U.S. and Canada will remain free through the rest of the year. The unlimited voice plans for top providers Verizon and AT&T are $69.99 per month. The international rates, too, seem reasonable for now: 2 cents a minute for calls to the U.K., France, Germany, China and Japan. Over 1,000,000 calls placed from Gmail in just 24 hours, as per tweet from Google.

Google has plans to release this feature for businesses soon….with a fee of course. Google has been generally slow to tap the corporate market — which could be a driver for Google to offer Gmail calls at a competitive rate.

Here is an excerpt from CNN:

“Google is taking the easy road of arming their army of fans and users with something just good enough to use — but not necessarily good enough to meet enterprise requirements — and standing back and watching to see how they can shape the market,” said Tom Austin, Google applications analyst at Gartner.

As a result, Austin said he believes Google’s paid revenue stream for the service will be quite small: just $20.3 million per quarter, or 0.3% of Google’s second quarter revenue.

What are your thoughts?

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