Telco giant BT and Yahoo have launched a voice over Internet Protocol (VOIP) service called BT Communicator available through Yahoo’s popular instant messenger.

This new product from BT and Yahoo is available free online and the idea of for consumers to manage all their communications - phone calls, webcam, emails, texts and instant messaging - together in one place on their PC.

Customers require a BT line and a can make calls using a headset or handset, which is connected to their PC. Users of the service will be able to make free calls when connecting from their PC to another PC and the package comes with a free online directory enquiries search facility.

Calls made to a landline or mobile phone from a PC with BT Communicator cost the same as a phone call on a BT fixed line phone package. Customers can also make UK phone calls on their BT Together package – potentially from anywhere in the world.

Although BT is yet to finalize it’s pricing strategy on this benefit a BT spokesman is promising extremely competitive rates.

Using the same technology, BT is also hoping to develop a multi way video call feature - enabling people to dial their friends or family and speak to them face-to-face. This is due for release sometime in 2005.

For further information please go to where you can download the beta version.