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Yahoo Buys VoIP Provider DialPad

2005-06-14 10:25:00

SAN JOSE, Calif. (AP) -- Yahoo Inc. said Tuesday it had acquired DialPad Communications Inc., a 6-year-old company whose software lets people place calls over the Internet for a fraction of the cost of regular telephone service.

The companies would not release financial details of the deal, which closed Monday.

The Internet's leading portal will use DialPad to expand its product array in the burgeoning niche of Voice over Internet Protocol, or VoIP, said company spokeswoman Joanna Stevens.

The technology converts conversations into data packets that traverse the Internet over broadband connections. Some in the industry think VoIP will eventually nudge the 130-year-old circuit-switched phone network into obsolescence.

Milpitas-based DialPad, which has about 40 employees, competes with a growing number of startups that reroute calls from computers to servers to telephones.

Current mainstream VoIP services let callers use standard phone handsets or even cell phones to make or receive calls, a big improvement on the computer-to-computer of early Internet telephony.

Depending on the subscription plan, Dialpad charges as little as 1.7 cents per minute for calls, including international calls to more than 200 countries. DialPad subscribers can also buy a prepaid VoIP calling card. The company has been offering calling plans for about two years and has more than 14 million users.

New products from Yahoo that integrate DialPad technology could debut within a month, Stevens said.

It's unclear what Yahoo might charge for VoIP service involving calls to traditional phones.

``We still need to integrate the technology and roll out a product, and we haven't disclosed those details,'' Stevens said.

The acquisition is Yahoo's second VoIP announcement in less than a month. In May, Yahoo introduced a test version of its instant messaging software with an Internet telephony component that lets users make free computer-to-computer calls.

In-Flight Broadband Flies Globally, But Stalls In U.S.
The U.S.-based Boeing Company announced Thursday that it has signed up another foreign airline for its in-flight broadband service. The head of the service, attending the Paris Air Show, said Connexion by Boeing expects to start selling cellular phone services to airline passengers next year.
Senate, FTC Push For Identity Theft Law
A Senate committee pondered national identity protection legislation in a hearing Thursday that took testimony and solicited answers from all five members of the Federal Trade Commission, the agency most likely to manage any new laws aimed to stop the recent wave of unwanted and illegal data disclosures.
Google Zeroes In On Mobile Web
Google Inc. on Thursday started testing a mobile-phone service that searches websites that have been designed to deliver content customized for the small screens of cellular phones.
EBay Partners With Chinese B2B Company
EBay Inc. on Thursday said it has partnered with Global Sources Ltd. in building a new service for manufacturers in China to sell their products.
'Star Wars' Brought The Buying Force To the Web
"Star War" fans last month brought a buying frenzy to the web, opening their wallets for movie tickets and toys featuring characters of the beloved science-fiction epic, a research firm said Thursday.
AOL Patches Netscape Browser, Fixes IE Breakdown
America Online Friday rolled out a patched Netscape 8.0 browser that finally fixed a bug which broke rival Internet Explorer's ability to render some XML pages
PayPal Unveils New Merchant Service
eBay's PayPal electronic payment division introduced a new service for e-stores that want to process credit card payments -- or seem to -- on their own site rather than send users to PayPal's URL.
Mytob Mania Won't Stop
The Mytob worm family keeps popping out newborns, security firms noted Friday, with no signs that the variants will stop any time soon.
Sony Plans Online Games Based On DC Comics
Sony Online Entertainment Inc. on Friday said it has signed an exclusive long-term licensing agreement allowing it to develop multiplayer online games based on DC Comics characters, which include Batman and Superman.
Illicit Workplace Pictures Found In Half of U.S. Enterprises
Half of the largest 500 U.S. companies have had to take disciplinary action against employees sharing digital pornography or other illicit images at the workplace, a study released Friday shows.


   
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