Qwest Communications International Inc. and Microsoft Corp. Tuesday said they will offer Internet phone service to small and medium-sized businesses, starting in 2006.
The service will combine Microsoft's Internet telephony technology with Qwest's OneFlex Internet phone service. Qwest said it is the first service provider to integrate the Microsoft technology into Internet telephone services.
Time Warner Inc also said Tuesday its America Online Inc. unit would introduce a Web phone service early in October.
Traditional phone calls use dedicated lines. Internet calls share the line with Web traffic and e-mails.
U.S. phone operators, including Qwest and its rivals Verizon Communications and SBC Communications Inc., are also eyeing the Internet phone market with an aim to reducing costs and adding new features.
Private companies such as Vonage and Skype, which is being bought by eBay Inc., have also drawn attention to Internet telephony with their services.
Jeff Kagan, an independent industry analyst, said that while the move from traditional phone services to Internet services would take years, the promotion of Internet services by more big-name companies should help such services gain popularity.
"All of a sudden you've got big money betting on it, and when you have big money betting on it, they're not going to let it fail," Kagan said.
