Deutsche Telekom Leads Investment Round In VoIP Company Jajah

VoIP has thus far only become a serious player in the wired telecommunications industry. When it comes to things wireless, VoIP has yet to gain much ground.

That may soon change, however. Deutsche Telekom AG, a German corporation, is now leading a group of investors of Jajah, a startup (which went live in early 2006) that promises to save users a good amount of coin, particularly in instances of international spread, by routing calls via inexpensive VoIP connections. The latest round to be siphoned into Jajah’s operations, totaling a whopping $20 million, has made considerable waves in the VoIP world – and more broadly the telecom world in general – though not because of the sum given to the Austrian invention. (Jajah now lives its days headquartered in Mountain View, California.)

Jajah’s latest round of funding (the company was initially funded by the US-based venture capital firm Sequoia Capital) has made prominent headlines because those providing the cash to keep the gears turning for tomorrow are prominent names themselves. We mentioned Deutsche Telekom, the parent of T-Mobile (the strong scent of strategy is in the air) as the companies biggest backer. Intel Corp has also gotten some of its finances involved as well. The AP reported that “the specific amount invested by each participant…was not revealed.” Of course, silence, at least for the short term, is to be expected.

With 2 million registered users, Jajah is certainly looking well, and has carved a sizable niche for itself in the past year or so. Clearly, there’s reason for DT to show interest in the operation. But as good as it is to see big names backing a solid startup they understand will have a crucial hand in the VoIP industry in months and years to come, it’s peculiar to watch a German-based corporation take so much interest in a company now relying on US customers to provide roughly 40% of its revenue. Yes, T-Mobile, the #4 wireless carrier in the US could perhaps use DT’s investment in Jajah to its advantage, but one would think AT&T, Verizon, or even Sprint would very much like to forge a sort of preliminary partnership with a company such as Jajah, too, if only to secure their places in a still burgeoning market.

A smart move for Deutsche Telekom through and through, this one is. One they can now build upon to strengthen their business in Europe and the US. And it hasn’t cost DT much at all to get its foot in the door.