VoIP becomes key in the battle for eyeballs

MySpace and Skype users will be able to talk to each other free of charge starting in November under a deal which sees VoIP emerging as key offering in the looming battle between the big email operators and the fast growing social network sites. Under the deal announced last week MySpaceIM with Skype will enable users to place free Skype calls and send IM messages to MySpace and Skype users.

For Skype--owned by auction powerhouse eBay--the deal gives it access to MySpace's 110 million-user base, most who are young and living in the U.S. Skype has more than 220 million users, mostly outside North America.

MySpace is under strong competition in the U.S. from fast-growing Facebook and in the U.K. from Bebo. But the real threat to the booming social network sites is expected to come from the big email providers, Yahoo, AOL, Microsoft and Google who have plans to pump up their sites with new services including voice and video telephony.

Yahoo executives describe its 250 million email users as the "world's largest dormant social network," and with all the portals' social network initiatives falling short, the new battle ground is expected to see the portals seeking to morph their email products into a broader communication and relationship offering--including VoIP.

The nightmare scenario for telcos worldwide is that (much) sooner than later they could face a billion email and social networkers all with free VoIP. Maybe, but what is not in doubt is how cable companies in the U.S. have emerged as the new VoIP market leaders. Read our next story.

For More:
- Will Social features make email sexy again Read WSJ report
- MySpace and Skype announcement 

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