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BT and Microsoft launch VoIP service

UKer   on 21 May 2002 - 10:34 · 1 comment & 283 views

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Today BT Group and Microsoft have extended their partnership to start a VoIP (Voice over Internet Protocol) subscription service that, for a monthly subscription, allows unlimited UK calls through Microsoft Messenger. This system allows users to use make calls while surfing on the same line and they can call any fixed line in the UK.

The service is going to cost £20 a month and it is available to all BT Together customers (who are users of a package that starts at £11.50). The product manager from BT Ignite, David Pearce, has claimed: "PC2UK demonstrates BT's commitment to offer customers the most innovative and advanced communication solutions available. This latest addition to the VoIP portfolio is also an important step in BT's partnership plans with Microsoft.".

This service seems only to be available for landlines and not mobiles and comes in at £1.50 more than their landline offer, which is £18.50 for unlimited evening and weekend calls (but whether PC2UK includes the BT Together subscription isn’t mentioned so the price could be £31.50 in total).

For businesses this is clearly going to be a great investment and this will appeal to those which need a constant connection to the Internet at home. VoIP allows fax/voice calls to be sent over an IP network with a suitable QoS (Quality of Service) and it allows cost savings, in this case for heavy phone users. The success of this will depend on the continued deployment of broadband in the UK but this won’t be available to cable customers who use networks like Telewest and NTL unless they have a BT Together account.

News source: PC2UK
View: Learn more about VoIP


Switching Tool Offered

"MSN is targeting AOL because that's where all the subscribers are," says Dylan Brooks, a senior analyst with Jupiter Media Metrix. AOL users are the least likely to change ISPs--partly because AOL doesn't make it easy to switch. Brooks notes the irony: MSN's cancellation process isn't getting easier, while it makes AOL's process 'hassle free'. He says the dirty little secret ISPs share is that none wants to make it easy to cancel service.

Migration is handled via a three-step Switching Tool from TrueSwitch, a Microsoft partner. TrueSwitch hosts the tool, which guides customers through a Web-based questionnaire coupled with a Microsoft Active-X control to migrate former AOL account data.

TrueSwitch locates AOL data on a user's PC and moves it to MSN's Web portal for Web-based access. TrueSwitch also will notify AOL Billing by e-mail or fax when AOL customers terminate their accounts. The switching tool is the next generation of its existing migration option, which helped AOL users "walk through" the process.

MSN charges $21.95 a month for unlimited dial-up access, and between $39.95 and $49.95 for high-speed Internet access. AOL charges $23.90 a month for its dial-up Internet access.

MSN Makes Headway

As the number two ISP, MSN shows signs of gaining on AOL. MSN says its membership has grown by 4 million over past year to 8 million. Meanwhile, AOL reports a membership of 34 million, with new customers signing on at a slowing pace. Number three provider Earthlink has 4.5 million subscribers, according to Jupiter Media Metrix.

Both MSN and AOL have paid dearly for market share in their bitter war for the loyalty of average online consumers.

AOL reports 6.5 million new members signed on with it over the past year, thanks to promotions and free trials. Morgan Stanley analysts estimate the percentage of nonpaying AOL subscribers jumped to 15 percent in 2002 from 7 percent in 2001.

Microsoft has spent heavily to acquire new members and is showing signs of belt tightening. Last year, it discontinued a $400 rebate program after conceding it cost too much to operate. A current MSN promotion offers new subscribers $50 "cash back" after they pay the bill for three months.

MSN is also offering new broadband customers free activation and a free installation kit, including a DSL modem, when they sign up for a year of service.


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