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Google Becomes (Almost) Full-Fledged Telecom, Vonage, Skype, Others In Sites

By Erik Sherman | Nov 13, 2009

You knew that Google wanted to be in the telecom business when it bid for wireless spectrum. You knew that it really wanted to be in the telecom business when it acquired GrandCentral and eventually created Google Voice. Well, here comes the next step: Google just bought VoIP software vendor and service provider Gizmo5, and everyone over at Vonage and Skype must be quaking in their shoes.

While we don’t have any specific features to announce right now, Gizmo5’s engineers will be joining the Google Voice team to continue improving the Google Voice and Gizmo5 experience. Current Gizmo5 users will still be able to use the service, though we will be suspending new signups for the time being, and existing users will no longer be able to sign up for a call-in number.

Instead of being a phone add-on, Google Voice will be able to offer VoIP calling — plus, Gizmo5 had a mobile option that let people make calls from cell phones over a 3G or WiFi network, meaning that Google will not only be able to go after Skype and Vonage, but also will siphon revenue from the wireless carriers.

In fact, we might have seen this coming as Google had a Google Voice-Gizmo5 mashup. Guess the workaround isn’t going to be so important any more.

Image via stock.xchng user scottind, site standard license.

Erik Sherman is a freelance journalist whose work has appeared in Newsweek, the New York Times Magazine, Technology Review, the Financial Times, Chief Executive, and other publications. Follow him on Twitter.

BNET User Analysis

Web Buzz:
  • It's official - Google gets Gizmo5

    FierceVOIP - 4 days 19 hours 46 minutes ago

    Last week we reported rumors that Google bought Gizmo5, an Internet VoIP provider that competes with Skype for peer-to-peer and low-cost VoIP calls. TechCrunch had reported earlier that Google had bought Gizmo5 for $30 million, but the official announcement had yet to be made. According to Google's Voice Blog, the Gizmo5 engineers would be...

  • What the Google Voice Team Will Do With Gizmo5

    eWeek - 4 days 8 hours 27 minutes ago

    Google was very cagey when asked what its Google Voice team would do with the Gizmo5 startup it acquired last week. Gizmo5 makes Web-based calling software for mobile phones and computers. Specifically, it provides a Web-based VoIP client that lets users make phone calls over the Internet, similar to programs like Skype. Google's secrecy matters...

  • Google Voice Now a Viable Skype Rival with Gizmo5 Buy

    eWeek - 7 days 7 hours 58 minutes ago

    Google Nov. 12 confirmed that it had acquired Gizmo5 for an undisclosed sum. Gizmo5 makes Web-based calling software for mobile phones and computers. Specifically, it provides a Web-based VoIP client that lets users make phone calls over the Internet, similar to programs like Skype. Some speculate Gizmo5 will evolve into a new version of the...

  • Google to acquire Gizmo5, swing at Skype with VoIP-enabled Google Voice?

    Engadget - 11 days 44 minutes ago

    There's no official word on this yet, but the inimitable Michael Arrington says that Google's up and purchased VoIP company Gizmo5 for "around $30 million in cash." You know, pocket change for the crew in Moutain View. The deal would presumably bring Gizmo's SIP-based VoIP talents to Google Voice , taking it from quirky phone-management service...

  • Google Voice Gets New Free VoIP Service

    WebProNews - 7 days 9 hours 19 minutes ago

    Earlier this week, reports surfaced indicating that Google had bought Gizmo5, a VoIP firm. The news came just on the heels of Google's AdMob acquisition. Google has now officially announced that it has indeed acquired Gizmo5."While we don't have any specific features to announce right now, Gizmo5's engineers will be joining the Google Voice team...

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