Google Gizmo5 buy to compete with Skype, possibly telcos

Google has arguably had its eye on the VoIP space for more than a year, and the acquisition of Gizmo5 only made a move more likely. Now the story is that an announcement is imminent—as early as later this summer.

The new service is expected to compete with Skype but also to include at least integration with if not absorption of Google Voice, a UCS-like service that’s still in an extended beta. The decision by Google to enter the market would likely threaten Skype, but whether it would also threaten Vonage and even erode telco voice revenues will likely depend on whether the service attempts to provide E911 capability, a prerequisite for replacing existing voice services. We’re not getting much scuttlebutt on that particular point at this stage, but we’ll keep you posted.