Deutsche Telekom backs internet phone company

Source: Technology Digital

Date :29/05/2007 11:01:35

Deutsche Telekom has become the first major phone company to support VoIP.

The company is backing the internet telephone company Jajah, which provides voice over internet protocol (VoIP) services, which allow people to make calls over the internet at a fraction of the usual prices.

Deutsche Telekom is investing in Jajah through its investment arm T-Online Venture Fund.

Intel's investment arm made a similar investment earlier this month.

Andreas Kindt , T-Online Venture Fund’s Chairman said: "By investing in companies like Jajah, we will be able to continue to bring users around the world the innovative solutions they are looking for."

VoIP technology allows users to make calls either via their computers or using mobile phones if they are in an area with a wireless broadband network.

As a result, most traditional telephone companies and mobile operators see it as a threat to their revenues.

Earlier this month, the company reported a 58 percent fall in three-month profits, after more than half a million customers left its fixed-line business to join cheaper rivals.

May 29 2007