Social networking site MySpace and web-calling leader Skype will offer MySpace members free Internet phone services in a bid to expand their user bases while fending off rivals, company officials said on Tuesday.
MySpace and Skype will begin allowing MySpace members to make calls starting next month using Skype's web-based voice-calling service. The calls will be placed through MySpace's existing instant messaging technology.
Members of Skype, a unit of eBay Inc, will be able to link their own MySpace profiles to their existing calling service. The two sides have also hooked up their technology to make it easier for members of only one network join the other.
"We're connecting the two networks to create the world's largest voice-connected online network," said Don Albert, Skype's North American general manager.
MySpace faces growing competition from privately held social network Facebook, which quickly rose to a strong second place since it became an open network earlier this year.
It sees extending its communication capabilities as a key competitive strategy.
"A huge chunk of our user base is already using AOL messenger, Yahoo or MSN," said Kyle Brinkman, vice president of product development at MySpace. "We think we do it better when it's integrated [into the MySpace site]."
In addition to the free calling services, MySpace users can choose from paid Skype services that include voicemail and call forwarding to a regular landline telephone or a cell phone. Skype calls between Web phone users are free, while calls to conventional phones incur small per-minute charges
MySpace has nearly 110 million members worldwide, with about 8 million of them actively using its instant messaging service, while Skype boasts 220 million registered users and is available in 28 languages.
Financial terms were not disclosed, but the two sides have agreed to a revenue sharing arrangement.
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