By Sharla Sikes

Behemoth telecommunications company Deutsche Telekom, owner of T-Mobile, has taken an interest in the VoIP industry with its $20 million investment  in VoIP startup Jajah http://www.jajah.com—about five percent of the firm. The investment makes the German telecommunications giant one of the first major telephone providers to fund a third party phone provider. While some traditional telephone service providers offer their own VoIP calling service, most fear to become their own competition.

What does Deutsche Telekom’s $20 million signify? More than just a financial investment, it’s a sign that one of the largest communications corporations in the world is willing to take a risk and see where VoIP is going to go. Jajah, based in Silicone Valley, has attracted 2 million users. Jajah has said it expects to sign at least 5 million users by the end of the year. Jajah’s simplicity of use makes it attractive, with users simply typing in a phone number on a keypad, which travels through the company’s servers to connect the call. No additional equipment is required. The company offers competitive rates, with long-distance calling billed at local rates.  Jajah-to-Jajah calls are free.

Founded in 2005, Jajah aims to take on the land and mobile markets for VoIP. It’s also received funding from Intel and Sequoia Capital, and may soon challenge industry leader Skype  for its market share. Jajah and other startups have challenged existing providers in the mobile market. Jajah’s aggressive growth makes it a “natural partner,” according to Deutsche Telekom’s Andreas Kindt.

“The communication landscape is rapidly evolving. This investment aligns perfectly with our strategy. By investing in companies like Jajah, we will be able to continue to bring users around the world the innovative solutions they are looking for.”

VoIP technology is even newer in the mobile market than it is for landlines, and while online communications is growing, it’s still a fledgling product.

Last week, T-Mobile announced its Wing phone, a smartphone with VoIP capability if a user can access a wireless network. Deutsche Telekom, the largest telecommunications company in Europe, says it hopes to offer Jajah to customers soon.

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