Microsoft to cause havoc in the VoIP market?

[Alexander Turcic]

It's perhaps the most shocking news of the day, but according to The Business Online, Microsoft took it upon itself to conquer the VoIP telephony market. The Redmond giant is said to integrate VoIP with the Windows Mobile version of its Microsoft Office Communicator software. The article quotes an analyst saying that traditional telcos like Vodafone will risk losing out if they don't adapt.

Cyrus Mewawalla, an analyst at Westhall Capital, believes VoIP, when backed by Microsoft, will have a more devastating effect on mobile operators than it did on the fixed-line operators, which saw their voice revenues slashed after the introduction of VoIP services such as Skype. "Internet voice does not even have to take market share to force traditional operators to cut their prices. The mere thought of free voice is enough to make customers push for price cuts," said Mewawalla, predicting a bloodbath for mobile operator stocks.

And what about eBay who spent the little fortune of $2.6bn (half cash, half stock) on the purchase of Skype last year? Will they perhaps ban the sales of any Windows Mobile-related product to prevent Microsoft from taking over?

[via Slashdot]