MSN buys into Net calling future

C|Net | at | by Mike

Microsoft plans to announce Tuesday that it has purchased a small Internet calling start-up called Teleo, as part of a move to expand the capabilities of MSN Messenger.

The move comes as all the major portal and IM companies are moving more heavily into Internet calling. Last week, Google launched its own instant-messaging service, dubbed Google Talk, with a focus on voice chatting.

Microsoft has its eyes set on something more like Net phone company Skype's service, however. A key part of Teleo's technology is focused on making calls from a computer to an ordinary telephone, a feature that company executives said would start finding its way into MSN Messenger before the end of 2005.