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Portugal Telecom launches VoIP
Portugal Telecom yesterday launched its PC-based soft client VoIP service, integrating it within its SAPO Messenger service, which already had 150,000 active users four months after launch. In addition to free PC-to-PC VoIP calls worldwide, the service offers video calling, SMS functionality, as well as integration with popular IM services such as MSN and ICQ. Comment: The service resembles UK incumbent BT's Yahoo! Broadband premium offering, integrating a rich suite of communications services within its portal. As the service is PC-based, it is more of a value-added service for broadband, rather than a substitute for PSTN voice, which should minimise cannibalisation of existing revenues. The new service follows on from the quadrupling of access speeds free of charge for all customers back in May. Faced with stiff competition from cable operators Novis and Cabovisão, Portugal Telecom is fighting back to increase the stickiness of its proposition to existing customers, whilst enhancing its appeal to new customers. This is all part of its quest to have 1m broadband customers by the end of 2005, up from 787,000 as of March, and Portugal Telecom is on the right track to achieve this goal.
