Skype on Monday turned the Internet telephony industry on its head by introducing free calling to traditional landline and mobile phones in the United States and Canada through its SkypeOut feature. The move comes just days after Microsoft introduced Windows Live Messenger beta with its calling service.SkypeOut previously charged users per-minute fees for making calls to non-PC users — a business model being adopted by a number of rivals, including Yahoo, AOL and Microsoft. Now, Skype users can call both fellow Skype users and standard phone numbers without being charged until at least December 31, 2006.

International calls will still be charged the standard SkypeOut rates, the company said, which it claims are the lowest in the industry. Skype is hoping the free service will help solidify its position its the market amidst growing competition from the major instant messaging providers and VOIP companies like Vonage. I think this is a great news for all american and canadian citizens. Although not many people use their land lines nowadays and although it works only in the USA and Canada, it’s a good movement in the industry which could be quickly followed by other VoIP companies. May be we will call for free in Europe too within few months…