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Telefonica buys out VoIP provider Jajah

updated 05:20 pm EST, Wed December 23, 2009

Telefonica pays $209 million in cash for Jajah

European telecommunications and cable provider Telefónica on Wednesday announced is has purchased VoIP (Voice over IP) provider Jajah for cash equivalent to about $208 million. Jajah offers its services in nearly 200 countries and its customer base numbers in the millions. The service is integrated into many instant messaging programs and social media apps as well.

With the acquisition, Telefónica will expand its online communications presence. The deal will be finalized once it gets an official approval by Spain's competition authority, the CNC. Jajah has head offices in California and Israel.

Telefónica's purchase of Jajah is the first of its kind for a major cellular carrier. It also signals the start of a new trend that sees carriers shift from the traditional voice service on handsets and towards Internet calling that will likely become common when 4G networks arrive in the next two years.

by MacNN Staff



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