Yahoo Inc. is outsourcing the Internet telephone functions of its instant messaging program to the startup Jajah. Jajah will connect the calls to and from users of Yahoo Messenger and handle billing and customer care, the startup said Tuesday. Terms of the deal where not announced. No employees are moving over to Jajah.
The deal is a big score for Jajah, which has grown explosively since it was founded in 2005 in Austria. It is now based in Mountain View, Calif., and boasts 10 million customers.
Considering the amount of people with FREE long distance on both their home and cell phone it would appear to me that Yahoo is dumping a business that won't scale to some startup willing to feast on their crumbs.