Google buys Gizmo5 to boost Google Voice

Google Voice, which was launched back in March, provides users with a phone number to make and accept domestic calls free of charge. The service functions as an application similar to that of Google's Gmail and includes voice mail, conference calling, call screening, blocking of unwanted calls, and text of voice mail messages. However, Google Voice lacks the ability to initiate PC to PC calls and with the acquisition of Gizmo5, Google Voice is aimed at addressing its shortcoming.

Gizmo5 provides session initiation protocol (SIP) services which Google believes will help to improve Google Voice existing service and better compete with rival Skype. SIP is a protocol used for creating sessions on an IP network and it is expected that Google is planning to use it in Google Voice for PC-to-PC calls. It is also understood that existing Gizmo5 users will still be able to use the service, but no new users will be accepted.

"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," wrote Craig Walker and Wesley Chan, group product managers, in a blog posting.

Michael Gartenberg, a vice president at Interpret believes Google Voice will now be able to lure users away from Skype. "They will now discover they're faced with a whole new set of competitors as well as other parties, such as carriers, that will likely be concerned about Google's role in mobile communication, especially with their Android beachhead," he said.