Yahoo, one of the largest web portals, bought dialpad, a Califonia-based VoIP call subscription provider, on June 14th, marking the beginning for yahoo to acquire small VoIP service providers, reported by both Gigaom.com and Conrante.com

The acquisition surprised many analysts with the original thinking that Yahoo will buy Skype, a more famous VoIP service provider. Either buying Dialpad or Skype, Yahoo's hope to enter into voice market is pretty clear. Weeks ago, it improved the voice feature in its brand IM software yahoo messenger, which leaded to speculations on its plan in extending in the VoIP market. Now, it actions.

Dialpad's website clearly marked its logo with "@yahoo company". Amy guess it will not be the only one doing this, and there should be many more in the future.

Now the VoIP market is so hot, or noisy, as no fixed order has been set up. Traditional telecom companies, Web portals, exclusive call plan providers, and even cable companies are all trying to compete with each other. The frequent merge&acquisition could not be avoided in a period like this. It is similar with the time when web portal first emerged. Websites such as MSN, Yahoo and AOL competed a lot, and finally took certain shares in the market.

The exclusive call plan providers such as Skype are more fast compared with giant companies, though they are short of huge money. Giants like yahoo will always find it easy to buy small rivals to reduce competition, and merge the business chain. But in such an era where profession in small field take advantage, it is hard to be a monopoly in a whole market. A company has to know its advantage before moving into a new industry.

Who will buy whom in a short time?

P.S. VoIP weblog has a new fresh look now(Thanks to our dedicated techinial team). Tell me your opinion via amy@creative-weblogging.com.

Permalink: shaping the VoIP business chain

Tags: yahoo dialpad

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Since Yahoo has 62 million subscribers of its Messenger Services the acquisition of a company with expertise on VoIP services must enhance with connectivity and revenues its voice service. Will Microsoft do the same and inflame this battle?

Posted by: Daniel Scaion at June 28, 2005 01:47 AM

hoho, if Microsoft's MSN wants to compete with Yahoo's messenger, I think Microsoft will be interested in the battle. :)

Posted by: amy at June 28, 2005 05:16 PM

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