Into Tech

Californian internet telephony specialist Jajah has clinched an important deal with computer chip designer Intel which will put its cheap-rate telephone service in easy reach of consumers and potentially halt a decline in the take-up of so-called VoIP services.

Under a deal to be announced today, Jajah’s voice over the internet technology will be integrated into a new generation of Intel chips that include the company’s Remote Wake technology, meaning calls can be taken even when a computer is in standby mode.

Integrating the technology into the chip means computer manufacturers, and increasingly broadband providers who want to give PCs away to customers signing up to long-term contracts, can supply machines that can make cheap calls using the web straight out of the box.

Until now, VoIP services, such as Skype, have relied upon consumers downloading and correctly installing software. More than half of all computer users have never downloaded any software from the internet let alone experimented with VoIP.

Jajah has more than 10 million users across the world and is backed by the venture capitalists who put cash into Google and Apple.

The deal with Intel means manufacturers will be able to provide computers that have Jajah ready configured and use the machine’s own microphone, include a handset or even have a phone socket built-in which can be used with any existing phone. Jajah allows users to call any fixed or mobile phone anywhere in the world for a fraction of what they would normally pay.

The mobile phone operator 3 is understood to have sold well over 100,000 Skypephones, its mobile handset that includes the free Skype service, highlighting the growing attraction of free internet-based telephony services that threaten phone company revenues.

The success of the phone, which is made by the Chinese manufacturer Amoi, highlights the growing popularity of mobile versions of VoIP - voice over internet protocol - services.

VoIP services use the internet instead of traditional telephone connections to route calls between users. Though Skype is the largest and best known, there are a host of VoIP providers and they have already become popular among computer users, who can plug headsets into their PCs to make calling easier.

The rising popularity of mobile phones that can access the internet, and networks that can support the sort of fast connections needed for such calls has created a real demand for mobile VoIP services. Companies such as Fring, Vyke, Jajah and WiFiMobile have already launched services.

Though the quality can be patchy, the fact that calls are free makes up for any degradation in service. With the Skypephone, for instance, customers can talk to other Skype users for more than two hours a day for no extra charge, regardless of where the person called is located.

The newest of the UK’s five networks, 3 reckons its cost base is one of the lowest in the industry. It has seen usage of the Skypephone rocket since it was launched in November - more than 1m minutes of Skype usage are passing over the 3 network every day. The operator is hoping new customers attracted by the Skypephone will also spend money on its network.

The company, which refused to comment, is also understood to be planning to launch a new version of the Skypephone this year. It will use the next generation of fast wireless technology - high-speed downlink packet access, or HSDPA.

BT is in talks to buy Silicon Valley internet-phone software developer Ribbit as it looks to create a one-number web-based communications platform to take on the likes of Google and Skype in the burgeoning online telecoms market.

Ribbit, founded two years ago and based near Google’s headquarters in Mountain View, claims to be “Silicon Valley’s first phone company”. It has created software that allows programmers to design applications that tie together mobile phones, fixed-line phones and even social networking sites into a single online communications hub.

Ribbit allows any software developer to use its technology to create applications, in the same way as Google has opened up its soon to launch mobile phone operating system android and Apple has allowed other people to develop software for the iPhone.

There are a number of communications tools such as Evernote - which allows forgetful iPhone users to access their “to do” lists from their phone or computer - which are designed to integrate the mobile phone with internet-based services.

Bringing together the information stored on the web with mobile phones, a trend known as unified communications, has been mooted for many years. But the take-up of broadband and the creation of fast mobile phone networks has made it easier to achieve. Last year Google snapped up another Californian company involved in this area, called GrandCentral, for about $50m.

BT is understood to have offered as much as $55m (£28m) for Ribbit, although a deal has not yet been signed. BT refused to comment yesterday.

Ribbit’s technology has already been used by a number of third party application developers. American business communications group Salesforce.com has a Ribbit-based application that lets the company’s sales people keep track of all their calls and contacts through a single web page.

Ribbit is also testing a consumer platform called amphibian, which looks like a social networking site with a phone attached. It allows users to convert voicemail messages left on their mobile into text which can be read online, so users can search for keywords. Calls can be patched through from a mobile to a computer; not only will the caller’s number be displayed but amphibian can pull up their profile and latest postings from sites such as Flickr, LinkedIn and Twitter. Calls from other web-based telephone services such as GoogleTalk and Skype can also be accessed.

BT is in talks to buy Silicon Valley internet-phone software developer Ribbit as it looks to create a one-number web-based communications platform to take on the likes of Google and Skype in the burgeoning online telecoms market.

Ribbit, founded two years ago and based near Google’s headquarters in Mountain View, claims to be “Silicon Valley’s first phone company”. It has created software that allows programmers to design applications that tie together mobile phones, fixed-line phones and even social networking sites into a single online communications hub.

Reports in the blogosphere said that BT is spending $55m (£28m) on the company. No actual deal is understood to have yet been signed off, and BT refused to comment today.

Bringing together the information stored on the internet with mobile phones and computers, a trend known as unified communications, has been mooted for many years. But the take-up of broadband and the creation of fast mobile phone networks has made it easier to achieve. Last year Google snapped up another Californian company involved in this area, called GrandCentral, for about $50m.

Ribbit’s technology is open to any software developer to use - a model known as open source - so they can build their own applications. London-based Square Circle, for instance, has created a web-based phone application that looks like a chalkboard. American business communications group Salesforce.com, meanwhile, has a Ribbit-based application that lets a company’s sales people keep track of all their calls and contacts through a single web page and costs $25 per user per month.

Ribbit is also testing a consumer platform called Amphibian, which looks like a social networking site with a phone attached. It allows users to transcribe voicemail messages left on their mobile as text on a web page, meaning they can search for keywords in a message. Calls can be patched through from a mobile to a computer; not only will the caller’s number be displayed but Amphibian can pull up their profile and latest postings from sites such as Flickr, LinkedIn and Twitter.

Because the system is open, calls from other web-based telephony services such as GoogleTalk and Skype can also be accessed.

Google, too, is experimenting with open-source mobile communications with its Android mobile phone operating system, due to start appearing in the first generation of handsets towards the end of the year. Application developers are likely to use the platform to create unified messaging services. Apple, meanwhile, is also letting developers create applications for its iPhone device and a Ribbit service has already been created.

Ribbit has raised about $13m from venture capital firms Alsop-Louie Partners, Allegis Capital and KPG Ventures. It was co-founded by serial entrepreneur Ted Griggs who serves as chief executive, former AT&T product development head Crick Waters and two of Griggs’ colleagues from his previous company, telecoms software group Syndeo Corporation: Peter Leong and Ramani Narayan, Ribbit’s head of marketing, meanwhile, used to be head of marketing at another Californian start-up in the web telephony market called Jajah. He previously worked for Apple.

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