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AOL Ties VOIP To AIM
By Mark Hachman

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AOL has officially announced its second VOIP service, which the company previewed last year. The service will be marketed under the "Phoneline" name.

AOL has officially announced its first VOIP service, which will be marketed under the "Phoneline" name.

In April 2005, AOL previewed a similar service, which it dubbed "the AOL Internet Phone Service". At the time, AOL said the service would be launched in 40 U.S. markets; according to AOL, AOL Phoneline will be released in 50 U.S. metropolitan areas.

Beginning May 16, two versions of the service will be offered: a free, basic version of AOL Phoneline will provide users with the service plus a free local phone number. AOL users can also subscribe to an "Unlimited" service for a monthly fee of $14.95. A limited number of subscribers will receive the service for $9.95 per month, AOL said. The first month will be offered for free.

While the AOL Internet Phone Service was oriented around the telephone, allowing customers to place outbound calls via a phone, AOL Phoneline will be centered on its AIM instant-messaging service, forcing callers to place outbound calls via a USB headset -- and allowing them to idly click on AOL content while chatting to friends.

"This is different," said Krista Thomas, an AOL spokeswoman, via an email, when asked to differentiate between Phoneline and the AOL Internet Phone Service. "That was Vonage-like; this is Skype-like," she said, referring to the manner in which Vonage customers place calls over the phone, but users of the Skype application can use a PC.

The basic service will log calls and allow callers to leave a voice mail with Phoneline, if a user is absent. An integrated SMS service will flag users that a voice mail has been left. In an interesting twist, AOL plans to create a "Do Not Call" registry, driven by users: if a telemarketer or crank caller leaves places too many unwanted calls, that information will be disseminated to the AOL user base.

Customers who subscribe to the "Unlimited" Service will be able to place free unlimited calls to landline numbers in the U.S., Canada, and thirty other countries, a substantial upgrade over the international calling plans offered by other services. The software will also include advanced features such as click-to-call services, call blocking, and e911 support.

In a separate announcement, AOL also said it planned to beta-test "AOL Pages" next week, an announcement which hopes to let AOL users develop "MySpace"-style web pages, complete with syndicated "Buddy Updates" that other AOL users can subscribe to.

Editor's Note:This story was updated at 1:53 EDT on May 5, 2006, with comments from AOL representatives.


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