VOIP struggles to break into the mainstream

10 February 2008

The engineers at Challenger Mobile, a software company in Stockholm, worked for more than a year to create an Internet telephone program with the goal of selling digital voice service to homes and businesses in Scandinavia. Two years later, Challenger's program is sitting on a shelf.

Christie Sundman, a co-founder of Challenger, said there were not enough buyers willing to trade their conventional copper phone lines for so-called Voice-Over-Internet protocol, or VOIP, telephony, a system that has been technologically feasible but financially unsuccessful for a decade.

Challenger Mobile ended up selling VOIP service to mobile phone users, who can save half or more from the fees they usually pay to European mobile operators.