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By PETER SVENSSON, AP Technology
Writer 50 minutes ago
NEW YORK - Two Internet telephone services debut Monday with unusual business
approaches, hoping to stand out in an increasingly
crowded market with intense price competition.
Users who don?t sign up for offers will pay 1 cent a minute for domestic calls
when they exhaust their initial 100 free minutes.
The Lycos Phone application also offers movie previews, PC-to-PC video calling
and text messaging.
Roman Scharf co-founded Jajah, a company that released
a for-pay PC-to-phone calling software last summer.
He soon found that users were attracted to the service
only because it was cheap, and he worried about
his future given cheap and free options elsewhere.
So the company took another tack and decided to
compete by making it simpler to place calls.
There?s no need to install software or get a microphone for the computer,
and it?s not restricted to Windows. The call goes
from phone to phone, with Jajah?s site and the Internet
as the intermediary. Domestic U.S. calls cost about
1.7 cents a minute. A U.S.-France call costs 1.9
cents.
Jajah, which is based in Austria, is funded by U.S. venture capital firm Sequoia
Capital.
The software-based VoIP providers are also competing
with companies like Vonage Holdings Corp., which
provide hardware that connects ordinary phones to
a broadband Internet connection.
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