3 launches free call handset

Mobile operator 3 has launched a handset that will allow you to make free calls over the internet using Skype technology.

The 3 Skypephone will also make conventional phone calls, but the launch of the handset marks the first time a mobile operator has released a mobile phone capable of making free calls over the web.

Michael van Swaaij, acting chief executive at VoIP provider Skype, said: "This new handset is incredibly easy to use and lets you make free mobile Skype calls when you are on the move to other Skype users all over the world no matter where they are."

He also acknowledged the significance of the free internet calling, a move which is bound to attract the attention of other mobile operators.

"It takes an innovative operator like 3 to challenge traditional thinking and offer the kind of product other operators are still shying away from," he said.

Some analysts thought that though this could be an attractive deal to consumers, 3 could be making problems for itself in the long run.

"In the short term, 3 may be able to use the Skype phone effectively to boost its subscriber numbers. In the long term, though, if 3 is successful with the Skype phone it might end up creating its own strategic problems," said John Delany of analyst company Ovum.

"Imagine the scenario: on your mobile phone you use Skype for phone calls, Hotmail for messaging, Google for search and directions, YouTube for TV and music. What do you need your mobile operator for?" Delany continued.

The 3 Skypephone will go on sale in the UK on 2 November, and can be pre-ordered now. It will cost you £50 for a pay-as-you-go (PAYG) contract, or free on a pay monthly contract.

Skype-to-Skype calling will be free, though if you have a PAYG contract, you will need to keep your credit topped up monthly.

The handset itself has a 2-megapixel digital camera, a battery life of 320 hours standby or 270 minutes talktime, Bluetooth, a web browser and weighs 86g.

Nokia is due to launch the N810 in the UK some time in November, a device which allows you to surf the web, but doesn't actually enable conventional mobile telephony. However, it will allow you to make calls over the web.

Skype has endured a torrid time recently, after an outage caused the service to shut down temporarily back in August, and owner eBay admitted that it had overpaid for the company when it bought Skype in 2005 for £1.4bn.

Skype has a user base of around 246 million people worldwide.

www.three.co.uk
www.skype.com

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