Gizmo launches web-based phone calls

GigaOM reports that SIPphone, the company behind Gizmo Project has taken the wraps off their new web-based VoIP product, Gizmo Call.

I consider Gizmo Project to be the best competition for Skype. I really like its built-in recording capability and compatibility with Google Talk. The new product -- Gizmo Call -- uses a small, browser-based Flash application that makes it even easier to make web-based phone calls.



Gizmo Call supports audio and video, and like it's bigger brother Gizmo Project, can call regular phone lines as well as Gizmo Project or Google Talk users. In a nice little twist, they've also created a little widget that you can cut-and-paste onto your website or MySpace profile that let's visitors call you by clicking and launching Gizmo Call. Nice touch!

As Om points out, the competitive advantage is ease-of-use and price. But where does the business model go when prices keep edging toward free? Can companies like eBay (Skype) and SIPphone (Gizmo) find profitability in a market with ever-shrinking prices?