Could this be the final coffin nail for traditional phone companies?

Microsoft Acquires Teleo, Innovative VoIP Technology Company

Deal expected to augment Microsoft’s investments in voice over Internet protocol technology, opens opportunities to bring additional powerful customer solutions to MSN Messenger and other MSN services.

REDMOND, Wash. — Aug. 30, 2005 — Microsoft Corp. today announced it has acquired Teleo Inc., a provider of voice over Internet protocol (VoIP) software and services that enable the placement of phone calls from PCs to traditional phones and that deliver this technology in unique ways through a variety of software and Web applications. Microsoft expects to combine the technology and expertise of Teleo with the existing VoIP investments of MSN to further develop products and services that connect consumers to the people and information that most matter to them. Financial details were not disclosed.

full story... https://www.microsoft.com/presspass/press/2005/aug05/09-30MSNTeleoPR.mspx