Summary
Google purchased Gizmo5, this is an online phone company similiar to skype. Google spent 30 million on the acquisition. When you put Gizmo's online calling system, with Google's ability to route calls, and Google Voices' ability to call your house, mobile and laptop together, you have the potential to become a phone company. This could possibly replace the way wireless phone companies work. Gizmo offered a similiar service for 6 dollars a month but was quickly taken off the market by Google. Google could recoup the 30 million spent on Gizmo5 if people started using computer based clients to access Google voice. This would save customers a few dollars a month in turn reimbursing Google. There are certain restrictions dealing with 911 wiretap requirements and Google hopes to bypass this and incurring common carrier obligations.
Response
This is something I thought about when I went to Germany to study abroad for a summer session. To communicate I used Skype on my computer to talk to family and friends. I saw offers from Skype for a Skype phone. As I understood it, it worked just like a phone only using internet based locations. I guess it was only a matter of time before something newer and cheaper than the way we do cell phones now would come. It will be interesting to see how they charge for this service. With every new technology there is always a new way to bill for it. Similiar to how online books and iTunes is working out.
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