Google's New Service to Allow Phone Calls Through Gmail (GOOG)

Google (NASDAQ: GOOG) is set to release a new service through Gmail to allow users to make direct phone calls. The service would compete with computer-based communications such as Skype, and traditional services like Verizon (NYSE: VZ) and AT&T (NYSE: ATT).

According to a Reuters report, "While Google had already offered computer-to-computer voice and video chat services, it said that starting on Wednesday it will now allow calls to home phones and mobile phones directly from Gmail for the first time."

Google's service will allow free calling in the United States and Canada this year, and low rates for other countries.

"This is a risk to Skype. It's a competitor with a pretty good brand name," Hudson Square analyst Todd Rethemeier told Reuters.

"Calling is so cheap already that I don't think it will attract a huge amount of domestic calling. It could take some of the international market," he continued.