Skype works on mobile VoIP service

Skype is working on how to cut the cables and take VoIP mobile.

LONDON - eBay's Skype is working with British cell phone service operator 3 to produce a handset that will allow users to make free calls on the internet, a spokesman for the company said.

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 in the normal way but to include a Skype function to contact other Skype customers.

Skype uses an internet connection to place a voice call, cutting out the telephony network for which telecoms operators charge by the minute.

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.

3 is the British cell phone business of Hong Kong conglomerate Hutchison Whampoa

- REUTERS