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March 26, 2009 5:14 PM PDT

Report: Skype coming to the iPhone

by Marguerite Reardon
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Skype, the Internet calling service owned by eBay, is expected to announce an application for the iPhone at next week's wireless CTIA tradeshow in Las Vegas, according to tech blogger Om Malik of GigaOM.

(Credit: Apple)

Skype is keeping mum on the announcement and has declined to comment on the rumors. But the company is hosting a press conference Tuesday afternoon in Las Vegas the day before the show kicks off. And it's likely the news will be announced there.

Skype admitted earlier this year that it's working on an application for the iPhone. Scott Durchslag, the company's chief operating officer, said at the Consumer Electronics Show in Las Vegas in January that an iPhone version of the software client would be coming to Apple's App Store.

"We have to make sure the call quality is there and the application works really well before we can announce the software for any device," he said in an interview after the company's press conference. "But we will have something for the iPhone as soon as it's perfect."

Skype sees mobile as the next major growth area for its business. Not only does it expect its more than 405 million registered users to take their Skype experience, which offers free and low-cost calling, with them on-the-go, but the company also believes they will be able to reach new users via mobile devices. By putting the peer-to-peer service, which uses the Internet to carry voice traffic, onto a mobile phone, it becomes very convenient to use. The regular Skype service runs on a computer and requires either a special phone or a headset and microphone to make and receive phone calls.

In the U.S. most cell phone plans include domestic long-distance calling as part of a bundle of minutes, so the Skype service isn't really that appealing. But for subscribers calling outside the U.S., rates can be as much as a $2 a minute if cell phone users don't subscribe to a special monthly plan for making international calls. This makes the Skype mobile client most appealing to users who want to make inexpensive international calls, but don't want to be tied to their computers.

A software version of Skype already exists for Windows Mobile phones. Nokia also plans to embed some of its phones with Skype clients. And Skype has worked with a company called iSkoot to develop a special Skype phone that is sold by the cell phone operator Hutchison 3 U.K. A Skype-lite version of the client is also available on some Java phones.

Now, iPhone users will get to use Skype, too. But before iPhone users get too excited, there's probably a big catch. The new Skype app for the iPhone will likely be restricted to Wi-Fi networks only, as Apple has done to other third-party services like Fring, which offers access to Skype.

If this is the case, it will be a huge limitation to the usefulness of the service. While other mobile phone users can use the Skype service anywhere they can a cell phone signal, iPhone users will be restricted to only using it where they can access Wi-Fi. Most people access Wi-Fi home or in the office, where they're likely to be near a computer anyway.

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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by t8 March 26, 2009 5:30 PM PDT
All I want is an internet device. Cellular networks are a rip off where I come from.
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by blusky08 March 27, 2009 2:22 PM PDT
Depending on your usage, you may find that using a service like Skype or Truphone is more economical than having a large mobile plan. So, signing up for the cheapest mobile plan and then using VOIP if/when your minutes run out is a great idea.

If more people start utilizing VOIP, it will drive mobile phone plan rates down.
by battlemage10000 March 26, 2009 6:36 PM PDT
Finally, its way too awkward talking to my computer.
Reply to this comment
by ekivemark March 26, 2009 6:48 PM PDT
Shape Services already offers s4iphone.com a service that allows you to use skypeout to make international calls. You basically add your phone number and choose who you want to call. Shape then makes the two calls and connects them together.
Reply to this comment
by rtuinenburg March 27, 2009 11:42 AM PDT
Yes, and they charge you for both calls. Not a good deal.
by pcfish March 27, 2009 10:32 PM PDT
Fringe can let you do skypeOut natively on the iPhone already. s4iphone is useless since it charges your cellular minutes.
by gbelk08 March 26, 2009 9:14 PM PDT
I never got the Skype part of Fring to work for me, so I use Nimbuzz instead. At this point, I don't really see a point in Skype making a dedicated app, considering Nimbuzz connects to all of my social networks (GChat, Yahoo, AIM, Facebook, Twitter).

Skype's just too late to the party to get to play spin the bottle... sorry.
Reply to this comment
by seven7dust March 26, 2009 9:43 PM PDT
I wonder wat took them so long as WinMO and Android have had it for many many months !
Fring although a great app , their Skype client is not really good enough
and all other Voip apps I've tried on my touch have been also been a Hit and a Miss !
I hope the Skype app lives up to it's brand name
Reply to this comment
by aaa064 March 27, 2009 1:47 AM PDT
I'm somehow not that troubled about having Skype work over 3G. Let's just say that my experiences with a Nokia e65 on the 3 network were not good.
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by inachu1 March 27, 2009 4:05 AM PDT
(6 weeks later the application is removed from the app store and sneaky methods to remove the app from my phone without my permission.)

My crystal ball tells me so.
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by chonnom March 27, 2009 5:49 AM PDT
and they still haven't fixed the problem with no connectivity to Japanese cell-phones.....fix the 186 error already.
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by Rmiami225 March 27, 2009 4:43 PM PDT
The only thing I use skype for .... is to video phone my grand kids .... and that is free! If I could do that on an IPod .... wow!
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