Starting next year, Microsoft users will be able to make cheap VoIP (Voice over IP) calls from PCs to the public telephone network. 'MCI Web Calling for Windows Live Call' is currently being tested as part of a Windows Live Messenger beta program. Thus far, subscriptions are limited to the United States.

Even though the Beta is being tested in the U.S. only, people do expect that Microsoft will include PC-to-telephone calling services in France, Germany, Spain, and the UK when the service goes live in 2006.

The Beta rates start at 2.3 cents per minute to the U.S., Canada, the U.K., and Western Europe. The companies will announce the final price when commercial service begins sometime in 2006.

Where Internet telephony is concerned, Microsoft is currently committed to using SIP (Session Initiation Protocol) technology. This is a signaling protocol that is used by technology products for creating session-oriented connections between two or more endpoints in an IP network. 3Com, AT&T, Cisco, Ericsson, IBM, Nokia, and Nortel also supporting this SIP standard.

This joint partnership will bring new competition to the already dominating PC-Phone champion, Skype. Skype was recently bought out by Ebay for an estimated $2.6 billion. Skype needs not worry about Microsoft taking clients away just yet, but it will undoubtedly have a potential player on its hands after Microsoft gets the ball rolling. It is the world's leading software company for a reason and with this latest partnership, Skype should watch out.