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But instead of using audio, the app has a text feature that appears on top of the live video.

The company said the new service targets hardcore users of mobile devices by lifting barriers to faster communication."While texting is quick and easy, you often miss the meaning of a message, have to explain your reaction ('LOL'), or wait hours before getting a response," Arjun Sethi, Yahoo's senior director for product management, wrote in a blog post on Wednesday.

"And to actually talk on the phone, you not only have to be available, but you also have to be in a place where you can chat."Sethi said Livetext addresses those drawbacks while increasing the immediacy and intimacy of communicating."We see video as a way to make your conversations more authentic, and we see text as a way to connect that's quick and non-intrusive," Sethi wrote.

Livetext comes at a time when the Silicon Valley giant is desperate for more mobile products.

Analysts say the company's lacklustre financial performance in recent times is largely blamed on a dearth of mobile advertising revenue.

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