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Google, the world's most successful internet search engine, has introduced an instant voice and text messaging system. The venture marks the first time the search giant has moved into communications.
The Los Angeles Times reported on Tuesday that the service is to be called Google Talk. Google did not comment when contacted by Times Online, but the service, as expected, went live this morning, with a typically sassy copy line on its Talk website:
"They say talk is cheap. Google thinks it should be free.
"Google Talk enables you to call or send instant messages to your friends for free – anytime, anywhere in the world," went the blurb.
Google Talk will allow users to hold voice conversations with other computer users, with a service similar to Skype, the free VoIP (voice over internet protocol) software that allows users to make voice calls through their computers and over the internet at a fraction of the cost of traditional services.
Skype is believed to be working towards a market valuation of around $3 billion, and is reported to be a takeover target of News Corporation, parent company of The Times.
While Google has sufficient cash reserves to be able to consider a takeover bid for Skype of its own, the launch of Google Talk would seem to suggest that any such acquisition is remote.
Google Talk places emphasis on convenience and sound quality. By using systems technology that enable Google's search engines to function, Google Talk offers users the chance to "Talk through your computer but hear your friends as if they were in the same room", having pre-loaded contact details from Gmail.
Google Talk is restricted to those who sign up for Gmail, its own brand of e-mailing systems. Gmail's membership has been limited until now to invitation-only; Google is to make Gmail available to users throughout the United States provided that they can confirm their identity with a mobile telephone number. An international roll-out of the service will follow.
"It is not surprising that Google is launching a VoIP service given the very high growth of this market; the number of VoIP minutes is currently growing at a rate of around 50 per cent per year," Jerome Buvat, strategic business consultant at Capgemini Telecom, Media & Entertainment, said.
."Judging by recent acquisitions by Google, this launch seems to be just the initial step in the overall strategy of increasing Google's core product offerings.
"In its current format, the product only allows PC to PC voice and messaging, and thus does not pose an immediate threat to the incumbent telecom players. It is more of a competing product for AOL, Yahoo and MSN. To be a real threat to telecom operators, Google will have to offer PC-2-phone and phone-2-PC voice services.
"It is unclear how Google will make money in the VoIP market. They might adopt Skype's strategy and build a customer base of free VoIP users and then upgrade customers onto premium services.
"Or they could also try to get advertising revenues, but it might be difficult to sustain in the long term should they decide to go for PC-to-Phone services as it might not secure enough revenues to cover inter connection costs."
The Google service will also include an internet-based text-messaging component similar to Microsoft’s popular MSN Messenger.
Rumours that the company could be planning a large venture were stoked last week when Google announced plans to sell more shares to raise up to $4 billion in cash.
The company has said it has no plans for large acquisitions in the short term, but analysts have questioned that, noting that even before the secondary offering, the company has around $3 billion in cash on its books.
As it already dominates the internet paid-search advertising market, investors may demand that Google demonstrates it can fasten its hugely popular brand to other services and products to fuel future growth.
Signalling such an intention, Google on Monday launched a computer toolbar that hooks on to Microsoft's Windows software and which could seek to usurp the world's most popular operating platform.
Google's Desktop 2 builds on an existing application that allows users to search the hard-drive of their computers through a Google toolbar on their desktop. The updated version will "piggyback" Windows 2000 or Windows XP and will display stock prices, personalised news headlines and weather reports on the right-hand-side of Windows pages.
The company describes the tool as "a personal web assistant" that "learns the user's habits and interests". It will, for example, automatically bring you news reports from what it works out are your favourite sources.
Analysts said the tool could be the first incarnation of a Google web browser that could eventually rival Microsoft's Internet Explorer. "Let it be known from this moment: Google is serious. It wants to take your desktop away from Microsoft," said Brad Hill, a technology writer at the Unofficial Google Weblog.
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