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AOL to gift a Free Phone Line to its Instant Messaging Users

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Saturday, May 6th, 2006 | Related entries: Internet

AOL logo AOL is devising a new offer through which users of its instant messaging service will be able to receive incoming calls. Dubbed “Phoneline,” the feature offers an absolutely free of charge number to its subscribers. AOL said that a pay version would also be offered, which would allow unlimited calls to U.S. and 30 countries around the globe for $14.95 a month

Phoneline is planned to contend directly with VoIP provider Skype, which provides similar services through its desktop client. However, Skype users have to shell out an additional fee to receive a phone number for their account. AOL also intends to take on MySpace and MSN Spaces with the introduction of AIM Pages, a social networking service that would alert the user’s buddies through the AIM client when profiles are updated.

“We didn’t see something where we saw millions of consumers making [the Internet phone service] their choice,” said John McKinley, president of digital services for AOL. “Our priorities are all around AIM Phone.”

There will also be an introductory price of $9.95 per month for people who sign up early, according to The New York Times.

“We think this is really a great complement to existing communications behavior,” Mr. McKinley said. One example is the ability for consumers to get text alerts on their handsets if someone calls the AIM number and leaves a message. Voice mails are recorded and can be retrieved through an AIM or AOL email account.

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