Microsoft buys Teleo for VoIP

Microsoft is strengthening its position in the expanding internet phone sector with the acquisition of San Francisco-based Teleo for an undisclosed sum. Teleo’s technology allows computer users to make and receive phone calls from their pc and has the advantage of being already compatible with Microsoft products including Outlook and Internet Explorer.

Microsoft and rivals AOL, Google and Yahoo all currently allow phone calls between computers, but do not allow normal telephone calls to a domestic or mobile phone.

Yahoo is also planning to introduce a similar service, following its acquisition of Internet phone company Dialpad in June.

US software company Microsoft currently uses Voice over Internet Protocol (VoIP) technology in some of its products, including its instant-messaging service. It plans to incorporate Teleo’s telephone service into its MSN instant messaging service by the end of the year.