New York Interactive Agency Blog Post

Google Adds Voice Calling on Gmail

August 30th, 2010

If you are an avid Gmail user, you may have noticed a new feature has been added to your standard contact list. Last week Google took the leap to add Google Voice to its Gmail product. This new feature lets you call any of your contacts that are online (instead of using GChat) or via land/mobile phone free of charge within the United States and Canada. With more than 1 million calls made within the first 24 hours of the product’s launch, is Google on to something? And does Skype, the largest digital mobile service, need to worry?

If you currently don’t have the feature set up, no problem: It takes literally 30 seconds. All that’s needed is a browser plug-in installation and a quick browser restart. For calls outside of North America there is a fee, but after quick review and comparison to Skype’s fees, it looks as if Google is a little cheaper across all categories.

With more than 150 million Gmail users, the opportunity for growth is definitely real. At this time, Gmail is the third-largest free web mail service behind Yahoo and MSN. We doubt this new feature will attract new consumers, but don’t be surprised to see both parties quickly add this feature.  Additionally let’s not forgot about Facebook, the network with a half-a-billion-user community that is easily a threat to all parties if it makes the decision to add web-calling to its arsenal of features.

For Skype, these are interesting times. This month the site began taking steps toward finalizing an IPO and over the weekend rumors surfaced that Cisco has offered to purchase Skype before that IPO is complete. How the launch of Google Voice on Gmail will hurt Skype is still difficult to say, but if consumers are communicating to their friends via Gmail and GChat, GVoice seems the next logical step. Personally, my girlfriend uses Skype to talk to her Sister in France at least three times a week.  I introduced her to Google Voice with the intent to see if she would make the switch.

There is no doubt that the digital voice vertical is gaining speed and Google is making sure not to be left in the dark (unlike location based platforms, i.e. Foursquare and Facebook Places). With most Android phones already offering Google Voice, Google is positioning itself to be the easiest solution for any consumer. It will be interesting to see if users hop on for the ride.

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