By Tom Keating Chief Technology Officer and Executive Editor. March26th, 2006

Lycos Phone is launching on Monday the Internet's first-ever "virtually" free VoIP integrated communications platform, combining IM, video chat, real-time video on demand streaming content (including IPTV channels), and an MP3 player. That first sentence certainly sounded marketing-speak didn't it? And I said the magic word "free", but "free" is never "free" or at least never totally free. So what's free about the new Lycos VoIP client and is there a catch? (there usually is)

Well, get this, you can make calls from their softphone client to ANY U.S. based PSTN number for free. Yep, that's right, you read that correctly. This makes Lycos Phone the first VoIP client that I am aware of offering free PSTN calls to U.S. numbers (unless you go back to Dialpad's early days when they briefly offered free U.S. calls with advertisements). When I talked with Brian Kalinowski, COO for Lycos, I had to confirm, "This isn't just free PC-to-PC calling? You're talking free PC-to-PSTN here?" He confirmed that calls made anywhere in the world using their software to any U.S. number would be free. Wow! This makes Yahoo's announcement last week that I covered pale in comparison.

In fact, I did a cost-comparison of Skype vs. the new Yahoo! Messenger and Yahoo! was slightly cheaper. However, with Lycos it's free. You don't get any cheaper than free - unless they start paying you to use the service. The battle for VoIP is certainly heating up. Lycos is launching this product in partnership with Globe7.com, an India-based company which designed the software. Lycos has an exclusive 3-year deal with Globe7, so this application cannot appear on any other portal like Google, AOL, MSN or Yahoo.

Ok, stop the presses. Let's backup here. I had the above written about Lycos offering free unlimited outbound PSTN dialing when Lycos emailed me days later to clarify, "It has come to our attention, that some of the journalists we've briefed have had some confusion over the pricing points for Lycos Phone. Just to clarify, regarding the pricing, with Lycos Phone, users can make free calls from PC to PC, free PC to video calls and receive unlimited free incoming calls from any landline or mobile phone from around the world. All users receive 100 free minutes of PC to landline and PC to mobile phone calls, and can earn additional free minutes through various promotional offers. Unlike Skype and Yahoo, Lycos Phone users also receive a free U.S. phone number. Additionally, unlike Skype and Yahoo, Lycos Phone offers free FAX and free voicemail to email."

The two key parts are bolded. While you do get unlimited free inbound calls you only get 100 free outbound minutes. So I will have to taper my enthusiasm a bit since it's not free unlimited outbound dialing. Still, 100 free minutes is pretty cool and the unlimited free inbound calls is unique to Lycos phone. I meant to ask Lycos if the 100 free minutes is a one-time offer or if it resets every month to give you 100 free outbound minutes each month or if you have to earn more credits. Their website states "Opt in to special offers and earn up to 2000 free minutes." So it appears they give you 100 minutes to start but you can add more credits by participating in offers. When I installed the Lycos Phone software I saw an offer from Earthlink High Speed Internet, Backcountry.com, and a few university offers. I don't even see my free 100 minutes come to think of it. Will have to ask Lycos about that.