3 working on low-cost 'Skype' mobile

• Tags:
• Voip,
• Wi Fi,
• Skype,
• Mobiles

Jo Best ZDNet Australia

Published: 04 Oct 2007 09:20 BST

3 is thought to be working on a Skype mobile, which will give the VoIP service more presence on mobiles.

A spokesperson for 3 said the operator and a "leading internet communications company are working together to produce a exciting new product to make free internet calls completely mobile". The unnamed company is widely expected to be Skype.

3 is not releasing any further details on the product.

According to reports, 3 and Skype will team with an Asian OEM manufacturer to produce the low-cost mobile device.

3 has offered mobiles loaded with Skype for some time, as part of its X-Series offering: a bundle of web content and services accessible over mobile devices for a flat fee.

While 3 has embraced Skype, other mobile companies have sought to stymie mobile VoIP, fearing it may capitalise their voice call revenues. UK VoIP provider Truphone, for example, earlier this year accused local operators — including Vodafone — of blocking access to its service.

Nokia, the world's largest handset maker, has however adopted the VoIP technology, albeit in a slightly different incarnation. The Finnish company has produced a number of mobile phones capable of making calls over both cellular and Wi-Fi networks.

Operators around the world, including BT in the UK and T-Mobile in the US, have sought to capitalise on such devices with the launch of FMC (fixed/mobile convergence), where calls are routed via mobile networks when a customer is outside the home, and over the user's broadband connection when at home, using a single "dual-mode" device.

3 has previously been sceptical on FMC. The operator's strategy director, Bruno Duarte, said last year: "Whether we need the complexity of FMC, we're not sure... Yes, some people will want it but we believe it's going to be fairly limited."

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