It was bound to happen sooner or later, I guess. Google Voice was launched today. [Link]
Google Voice allows users to route all their calls through a single number that can ring their home, work and mobile phones simultaneously. It also gives users a single and easy-to-manage voice mail system for multiple phone lines. And it lets users make calls, routed via the Internet, free in the United States and for a small fee internationally.
Analysts singled out the Internet calling features as the aspect of the service that is potentially most disruptive to established companies. While inexpensive Internet calls have become commonplace, Google’s potential to reach a mass audience could make a difference, some analysts said.
Given the track record, Google's entrance in the market would probably mean that margins on voice calls will go to essentially zero. The telecom companies should speed up their conversion to bit-pipe providers in order to ensure survival. OR, they could decide to play chicken with Google.
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