Pace Micro Technology has signed a deal with a company in Finland.

Pace, which is based in Saltaire, has signed a deal to provide Finnish firm Sonera with voice over internet protocol (VoIP) technology.

The telephone technology allows the human voice to be digitised - allowing it to be sent through the internet.

Speech is digitised then sent over the internet in its digital format - rather than via the traditional telephone network.

Sonera, which provides mobile and advanced telecommunication systems, is launching the service today.

The system aims to deliver next generation telephony services to the residential market.

Andy Trott, divisional chief executive officer for Pace, said: "The strengths and benefits of VoIP are rapidly gaining attention, as telecommunication companies see opportunities to provide richer services that compete with cable-based internet service providers who are rapidly expanding voice services.

"Sonera's deployment of the service across Finland will significantly raise the profile of the technology.

Jari Hakalin, Sonera's director, added: "Sonera has a huge base of residential voice customers who are a ready market for next-generation media services.

"By utilising Pace's technology, we are able to meet this market demand, retain existing customers and provide fresh, innovate services that enhance the return on our investment in broadband."