Microsoft Begins VoIP Bloodbath

What many had speculated for a while seems to have been verified from the words of Steve Ballmer: Microsoft is entering the VoIP market, offering free calling through Wi-Fi-ready mobile phones running Office Communicator for Windows Mobile. Upon the news, one analyst predicted a "bloodbath" for mobile operator stocks. Why is it every time Steve Ballmer speaks, I swear I hear the Imperial March in the background? The Microsoft foray into the Voice over Internet Protocol (VoIP) market shouldn't be that surprising. A 27-page Michael Myser called a Microsoft VoIP move "only natural" in 2004 with the company's release of its Live Communications Server 2005. An effort to horn into the telephony market, said Myse, was "not entirely surprising. Speculation increased when the Beast of Redmond bought PC-to-PC phone company Teleo last August. In fact, writers were still pondering the VoIP inevitability as late as last week. But Russell Shaw, unimpressed by Office Live beta, asked in a Wendy's commercial reminiscent voice, "where's the VoIP?" Then, on Valentine's Day, Ballmer delivered a theBusinessOnline.com, the St. Valentine's Day massacre will be complete. Cyrus Mewawalla, an analyst at Westhall Capital, believes VoIP, when backed by Microsoft, will have a more devastating effect on mobile operators than it did on the fixed-line operators, which saw their voice revenues slashed after the introduction of VoIP services such as Skype. "Internet voice does not even have to take market share to force traditional operators to cut their prices. The mere thought of free voice is enough to make customers push for price cuts," said Mewawalla, predicting a bloodbath for mobile operator stocks. Dum dum dum dum da dum dum da dum dum da dum. (heavy, mechanized breathing) STEVE BALLMER: We've already sold over ten million units. (breathing) Communicator brings presence and instant messaging and voice capability to the Microsoft Outlook and Office (breathing)this is a killer Dum dum da dum dum da dum dum da dum document.write("Email the author here.") Drag this to your Bookmarks. Add to document.write("Del.icio.us") Yahoo My Web