What’s not to like about this? Yahoo is expanding its reach in the fast-growing Internet calling market, offering a service that will allow people to make and receive low-cost Internet calls to and from regular phones.

Here’s our story in the Merc. People will also be able to purchase a phone number with which to receive calls. The service comes with a free voicemail box. Although the calls will not be free, they will be extraordinarily inexpensive — a penny a minute to anywhere in the United States and less than 2 cents a minute to more than 30 countries, including China, Japan and Sweden.

Yikes. What does this mean for Skype/Vonage?

UPDATE: Andy Abramson talks about the Skype implications and much more at his VoIP Watch blog.