AOL to Start VOIP Service

America Online Inc., the world’s largest Internet service provider, plans to unveil its Internet-based phone service in markets nationwide today.

AOL’s entry into the voice over Internet protocol, or VOIP, market comes a day after Verizon Communications Inc., the nation’s largest local phone company, added a bargain plan and enhanced services to the Internet-based phone service it unveiled last summer.

The rollouts come as technology research company IDC this week projected that 27 million Americans would be using Internet-based telephone services by 2009, nine times the estimated 3 million today, as more households migrate to high-speed broadband Internet access.

The entry of established giants such as Verizon and Time Warner Inc.’s AOL into the market could help reassure consumers who may be skittish about entrusting essential phone service to unknown start-ups, experts said.

Indeed, AOL emphasized Wednesday that its service would have an enhanced 911 emergency service in all markets covered in the initial rollout. VOIP’s lack of access to the 911 system has been seen as a major shortcoming.

Until recently, the Internet phone market has been the stronghold of small, highly focused start-ups such as Vonage Holdings Corp., the industry leader with an estimated 600,000 subscribers.

In August, Verizon introduced VOIP service with unlimited local and long-distance calling for $29.95 a month.

AOL is offering new customers an introductory price of $29.99 for six months, after which the monthly fee rises by $10. Current AOL customers can choose among various plans beginning at $13.99 during a trial period.