An Internet phone operator’s latest financial filing has set off speculation that Google has begun selling a commercial version of its Internet phone service.
Google confirmed that it has contracted with a Florida-based company to provide Internet telephony services for its free click-to-call service, which lets people–speak with advertisers on its search results without having to pick up the phone and dial.
Google Inc., inked a pact with VoIP Inc., for Internet-telephony services in September, revealed in a filing recently.
Given Google’s rock star status in the technology world, the potential move is sure to enliven the market for VOIP (voice over IP), which is freely available software to make calls using an Internet connection.
VoiceOne services enable companies to offer their customers Internet-routed phone calls, which are much cheaper than calls made over traditional telephone lines. VoIP Inc.’s customers include Broadwing Communications and Pac-West Telecomm.
VoiceOne has entered an agreement with Google and has already been providing services to it, Shawn Lewis, chief technology officer of VoiceOne parent VoIP Inc., said in an interview. Lewis said he believes that the contract expires in two years and that he could not provide further details because of a nondisclosure agreement.
We are working with VoIP, Inc. on a click-to-call advertising test which we began late last year, a Google spokeswoman said in an e-mail response to questions. We have no further details to share at this time.
Google announced the test version of its click-to-call service in November.
Present day VOIP calls using Google Talk, Google’s instant messaging feature, are free, and largely confined to Internet-connected devices that download Google Talk.
The two companies have entered into a peering relationship, under which their IP networks will exchange traffic, Lewis said.
According to documents filed with the U.S. Securities and Exchange Commission, VoiceOne entered into a master service agreement on Sept. 1, 2005, to supply Google with voice over Internet Protocol, or VoIP, services. Then in October, Google moved into implementation phase, buying VoIP’s services and putting in place direct Internet links between the two companies at multiple locations.
On Jan. 30, word came from Google partner, Fort Lauderdale, Fla.-based VOIP Inc. that Google plans to debut a VOIP feature sometime this year. This could lead to a version that, presumably, allows its VOIP users to call traditional home or cell phones.
By filling out that missing piece of its phone portfolio, Google catches up to competitive VOIP features from Vonage Holdings, Skype, Microsoft’s MSN, America Online and others that already offer PC-to-phone dialing.
From Google’s perspective, this connection achieves two important goals. Chiefly, it allows Google to offer the same premium, low-cost phone plans and features that VOIP has become so famous for.
Google would only confirm that it is testing a "click-to-call" feature, which initiates phones calls much like a Web hyperlink sends someone to a new Web page.
VoIP did not disclose the terms of the deal but said it expects material revenue from the pact during 2006. It did not gain any material revenue from Google last year, the company said.
Founder Steven Ivester declined to say what services VoIP is providing the Internet giant, citing a non-disclosure agreement.
We have been working with them for quite some time, he said, and are developing services for Google, which he declined to discuss.
The hubbub is based on a U.S. Securities and Exchange Commission filing Jan. 30 by VOIP Inc., whose subsidiary was hired by Google last September to supply it with VOIP services.
VOIP Inc. now expects Google to begin reselling its services this year.
Yahoo, Microsoft and IBM all have announced plans to offer click-to-call services or have made deals that would enable them to provide them.
Google could not be immediately reached for comment.