Jajah, a provider of voice over Internet protocol, just launched a "killer" new consumer service, which enables cell phone users to access its very low calling rates through their cell phones. How low
are these calling rates? Well, like eBay's Skype, Jajah users connect to other Jajah users for free. But Skype isn't available from your cell phone. Before, you had to be in front of your computer to
use any VoIP service, which is why we continue to pay for such ridiculously expensive calling plans from cell carriers like Verizon and Cingular Wireless. But now, their worst nightmare has become a
reality, as Jajah's new app can be downloaded directly to your cell phone. Here's how it works. First, you must become a registered Jajah user. Then you have to have a supported phone (BlackBerrys,
Windows Mobile and Treo phones are forthcoming). Once you download the Java app and configure the software, Jajah will handle certain types of calls (like international ones) instead of your carrier.
The app literally routes the call to its own local number, moves it over VoIP to its destination, and calls the recipient via a local number where they are located. Founder Roman Scharf says the
carriers can't block this process because Jajah doesn't use the data services included with many newer phones. Instead, the app re-routes calls through normal telephone lines. The whole transaction is
seamless from the caller and receiver's point of view. And it's free--if both caller and receiver are Jajah users. Otherwise, calls are subject to incredibly low rates: For most of the developed
world, it's 2.5 cents per minute. Scharf says Jajah already has 1 million users a month. Skype, the VoIP industry leader, has 1.7 million users. Scharf adds that the firm currently makes about $10
per user per month, which would give the company $10 million per month and more than $100 million per year--putting it near IPO territory.
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