Web-calling firms Jajah and Jangl in partnership
NEW YORK, Nov 15 (Reuters) - Low-cost calling companies Jajah Inc and Jangl Inc said on Thursday they are joining hands to develop new Web-based phone services and compete with emerging rivals.
The smaller Jangl said a merger was possible in the future.
"You tend to date first with these kinds of things if you can," Jangl Chief Executive Michael Cerda told Reuters. "We can work closely and collaborate. It could be that some time down the road that (a merger) makes sense, but we don't know if that's the case yet."
Both companies provide Internet-based alternatives to traditional phone calls. They also offer calling services over online social networking sites that allow users to call each other without revealing their mobile or home phone numbers.
Jajah's strength is in discount long-distance services, while Jangl has focused on offering phone services through sites like Match.com, Facebook, and FriendFinder.
Cerda said the partnership, in which the two companies would co-develop services and share revenue, would help them gain a competitive edge against rivals such as Jaxtr.
Jangl has around 20 employees. Jajah, which has attracted investment from a group led by Intel Corp (INTC.O) and venture capital firms Sequoia Capital and Globespan Capital, said earlier this year that it had around 50 workers.
They are part of a crop of Internet phone companies inspired by the success of eBay Inc's (EBAY.O) Skype, including Rebtel and GrandCentral, which Google Inc (GOOG.O) has acquired.
Jajah told Reuters in an interview last week that it planned to go public in the second quarter or third quarter of 2008 to expand its service globally. (Reporting by Ritsuko Ando, editing by Steve Orlofsky)
© Thomson Reuters 2009 All rights reserved



