Skype upgraded its Skype for Windows software on Thursday to add personalized ring tones, sounds, and pictures for members; improved sound quality on Skype's VoIP service; free call forwarding to landline and mobile phones; and Skype toolbars for Microsoft Internet Explorer and Outlook.
The company is releasing the software only a few weeks after its $2.6-billion-plus acquisition by eBay earlier this month (see eBay Acquires Skype).
Google introduced Google Talk in August (see Google Learns to Talk).
Microsoft acquired VoIP provider Teleo in August (see MSN Steps Up the Voice Wars), and Yahoo is reportedly planning to launch VoIP capabilities as well.
Older VoIP providers such as Vonage also offer competition, even though their services are not free, as well as cable TV companies and phone carriers that are muscling in to the VoIP market.
The Wall Street Journal reported Thursday that Vonage's IPO will be underwritten by Citigroup, UBS, Deutsche Bank, and Bear Sterns.
The Luxembourg-based company has signed deals with American Greetings, Qpass, and Wee World to provide personalization features that will allow Skype callers to establish their online identities with distinctive avatars, ring tones, and other features for �1 ($1.20) and up.
One of the most useful features will enable Skype users to forward their calls so they won't have to be sitting at their computers to receive their communications.
"People in the beta program were excited about call forwarding," said Saul Klein, vice president of marketing at Skype.
Once the deal with eBay is complete, these features could also be useful on eBay, which plans to include a Skype Me button on its auction service, so potential buyers can talk to sellers to learn more about the merchandise.
The business for Skype is to build the world's largest Internet communications business.