Yahoo Partners with Linksys on New VoIP Phone
November 12th, 2006 - Posted in VoIPYahoo and Linksys have teamed up to create a dual-mode cordless phone that gives user the ability to toggle between VoIP functionality and a traditional landline.
One notable feature is that the phone gives Yahoo Messenger users a way to make Internet-based calls to people on their contact list. Additionally, subscribers to Yahoo Phone Out can use the phone to make calls at very low rates.
Dubbed the CIT310, the phone has a small color display and users will receive 100 free minutes when they sign up for the service.
Think Small
“The combination of Linksys and Yahoo is an interesting one,” said Yankee Group analyst Jennifer Simpson, who pointed out that Yahoo is the top e-mail provider in the country and therefore has broad appeal.
However, the audience for the new phone will likely be limited, Simpson added. It will appeal mostly to those in the U.S. who make international calls, which is only about 13 percent of households, she said.
“In addition to the international calling market, someone would also have to have some technological know-how to set up the service, even though I’m sure Linksys and Yahoo will try to make it as simple as possible,” she went on to say.
Further narrowing adoption is that, in order to use the service, users will probably have to be signed up with Yahoo Messenger rather than another instant-messaging company.
“There are several limiting factors,” said Simpson. “But that said, I do think this is an indication that more and more dual-mode phones will be coming out, and this is part of an ongoing and interesting development. We can expect to see more deals like this that appeal to niche customers.”
Testing the Waters
Those likely to dive in first with the dual-mode phone will not be those on the technological cutting edge, but rather, “almost early” adopters, said IDC analyst Raymond Boggs.
“It’s a product that will appeal to the folks who have heard of VoIP and have an interest, but who aren’t among the technology heat-seekers who already know about and are comfortable with IP telephony,” he said.
Dual mode, in particular, tends to appeal to those who like to have a backup system, much like people who wear both suspenders and belts, Boggs said, adding that the device will have its greatest appeal among those who want the benefits of VoIP, but aren’t ready for the full transition.