O2 parent invests in VoIP

The parent company of mobile network O2 has recognised the growing popularity of VoIP phones with a multimillion takeover of a VoIP provider.

Telefonica has announced the purchase of VoIP solutions specialists Jajah in a deal worth 145 million euros (£131 million), with the company's chief executive officer Matthew Key making it clear that the company sees VoIP phones as an important player in the communications technology market going forward.

Mr Key said: "The acquisition of Jajah broadens the scope of our communications offering and opens up new capabilities in the voice communication space.

"[Users] now have an even wider range of communications channels available and have the option of speaking directly to each other as well as communicating by text or keyboard."

The all-cash agreement remains subject to formal clearance by the Spanish competition authority CNC.

Telefonica services are present in 25 countries worldwide and generated more than 268 million customer accesses in the period leading up to September 2009.

Telefonica agrees VoIP phones deal