Skype released a beta version of Skype 5.0 that allows making group video calls with up to 10 people, ahead of its planned IPO or a possible takeover by Cisco.
The beta version works on Windows and requires that all participants in the group call upgrade to the new Skype 5.0 beta version to make the call functional.
The 10-person group video calling feature is currently offered for free but Skype plans to charge it later.
The launch of the beta version follows Gmail's entry into the VoIP segment with the launch of its own calling services Google Voice, offered over Gmail. Currently, Gmail calls are restricted to U.S. and Canada.
Skype will face competition from Gmail once it provides the facility internationally.
Google Voice - which is a free service - crossed 10 million calls in one week since its launch, said a posting on the company blog.
Skype allows free calling between Skype users over computers but charges for making calls through its SkypeOut Service.
Though currently Skype has a huge following, many non-Skype subscribers can move to Google Voice as most of the uses have Gmail accounts thus saving them the hassle of opening a new account.
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TechCrunch recently reported that Cisco is in talks to acquire Skype to laverage on its video-call technology. With the launch of a 10-person video call, Skype is will have more bargaining power with Cisco.
Further, its plans to for an IPO will get boost with the launch of new service. But Google's open-garden approach keeping its products free will hit Skype's paid services.