Mobile phone companies in Europe are charging "unrealistic" fees for call termination, according to VoIP provider Jajah.

Roman Scharf, co-founder of Jajah, said that the company cannot offer a free call service to European mobiles because of the high charges associated with call termination. 

Jajah has launched a free call service for registered users between landline phones in Europe and landline and mobile phones in North America and large parts of Asia.

"Why is there a difference between our service in Europe and the other continents? The difference is that the European mobile industry is charging unrealistically high termination fees," said Scharf.

"The European Commission is looking into this and we hope that the situation improves early next year or so." 

However, Scharf is not optimistic of a quick resolution. "I do not see that this is going to happen soon because companies such as Orange and T-Mobile need the high termination rates to recoup the money they lose through the plans they offer," he said. 

The Jajah service works by connecting two regular telephones when a user enters the numbers into an online form.

"The web application can be used by everyone who can use the internet. Simply enter the phone number and the destination number, then hit the button," explained Scharf.