Google, with the acquisition of VoIP startup Gizmo5, is looking to construct an immense play in the Voice-over-IP (VoIP) market giving tough competition to Skype.

It has been reported that Google had set down $30 million in cash for the acquisition on Monday.

Gizmo5 permits PC and mobile phone users to make free calls over the Internet. Hence, allowing users to evade definite fees that they pay when using the natural services offered by their network operators.

Nevertheless, Google Voice consumers may soon be doing more than just passing calls around the Internet.

Accumulating to functional feature of a single phone number which can ring all the users' other phones, Google Voice would also provide call forwarding services, intercept phone call recording, conference calling, and phone screening, to facilitate with SMS as well .

Consequently, it is probable that attainment of Gizmo5 could permit Google to bind Google Voice and Google Talk collectively into a solitary unit, something that might turn out to be a potential competitor to the prime VoIP provider, Skype.

"If you put all of this stuff together, you have something a lot more powerful than Skype. Google has just gotten to where Skype wants to go a little faster, assuming the deal is done", said Andy Abramson, author of the VoIP Watch blog.