Skype and 3 planning VoIP mobile phone

Skype, the voice-over-IP (VoIP) telephony service owned by auction website eBay, is working with UK 3G mobile phone network operator 3 to produce a new type of mobile phone handset that will allow users to make free calls on the internet.

A spokesman for 3 confirmed that the group was working to make internet calls mobile but would not confirm any further details or who it was working with. The phone is expected to work like any normal mobile phone, but will include a Skype function to contact other Skype customers and may automatically switch between VoIP and cellular depending on which offers the best price.

Mobile network 3 currently has the largest chunk of 3G spectrum in the UK, making it the most suitable network for bandwidth-intensive data applications. It is also mid-way through a HSDPA deployment.

Skype calls are often significantly cheaper than traditional telephony charges, particularly for long distance and international calls, as it uses the net for the bulk of the call transport. Skype calls to other broadband-connected Skype users are free.

The Skype spokesman did not give any further details but said the phone would be out later this year.

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