Deutsche Telekom is considering the launch of an internet telephony service that could boost its circuit-switched telephone business.
"We are taking on the challenge of VoIP," said chief executive officer Kai-Uwe Ricke.
The remark comes as numerous telephone companies, including MCI and AT&T, have announced plans to introduce VoIP services.
Acknowledging that the move to VoIP will have an impact on Deutsche Telekom's traditional phone business, Ricke said the service opens up new opportunities at the same time.
"We see internet telephony as something that isn't going to replace our telephone network but rather as a value-added service to complement our broadband offering," he added. "And if it is something we can add to a service, it's also something we can charge for."
John Blau writes for IDG News Service