Google launches Skype competitor, allows voice calls in Gmail inbox

Internet giant Google is challenging Skype with a new VoIP product which allows users to make audio and video calls from their Gmail inbox, with some Australian users already receiving access to the service this morning.

The move comes after Skype filed for a long-awaited IPO earlier this month, saying it intends to branch out and start developing new products specifically for business in an attempt to remain profitable.

Some Australian users may notice their Gmail inboxes being updated over the next few days. A new feature will appear in the inbox, prompting users to download an application. Once installed, users can make calls from a keypad appearing in the bottom right-hand corner of the screen.

The feature is being targetted towards US users, with calls to the US and Canada to remain free for the rest of the year. The company also brags it has attempted to keep calling rates “really cheap”, with many international calls costing only $0.02 per minute.

While Google says it still has plans to roll out the feature to users outside the US, tests by SmartCompany this morning confirmed the service works when calling landline phones. However, one test to a mobile phone failed.

The service appears to have struck a chord with American users, who have placed over one million calls over the new app within just 24 hours, Google said on Twitter.

“Gmail voice and video chat makes it easy to stay in touch with friends and family using your computer’s microphone and speakers,” it said in a blog post.

“But until now, this required both people to be at their computers, signed into Gmail at the same time. Given that most of us don’t spend all day in front of our computers, we thought, “wouldn’t it be nice if you could call people directly on their phones?”

The application is partly an extension of the already existing Google Voice product, which is available to US users and allows them to aggregate all their telephone numbers into a single number.

Existing Google Voice users can receive calls within their Gmail inbox with that number, but as the Voice service is unavailable in Australia, it appears local users will only be able to place calls and not receive them.

A Google spokesperson told SmartCompany this morning Australian users will be able to access the feature if they have their language setting set to US English, but no Australian users will be able to receive incoming calls.

Credit can be purchased to make calls in $10 increments.

The move is almost certainly an attempt to challenge Skype’s dominance in the VoIP sector. Currently the market leader controls about 10% of the international voice traffic market, and had turnover of $US400 million for the first six months of this year.

The Google announcement also comes just two weeks after Skype filed for an IPO in the United States. At the time, it said users made 95 billion minutes of video and audio calls in the first half of the year, with about 124 million active users every month.

However, the Gmail call feature also comes as the internet giant is reportedly setting up a social network to rival Facebook. The new service could be an attempt to have users become more accustomed to their Google accounts, which will undoubtedly form a large part of the new network.