Skype debuts free mobile Internet calls

Andy Sullivan

WASHINGTON: Internet phone company Skype Technologies said it has developed a version of its free calling software for handheld computers, a move that could undercut existing mobile-phone carriers.

Pocket PC owners with high-speed Internet access will be able to talk to other Skype users anywhere in the world for free, Chief Executive Officer, Niklas Zennstrom said.

"Say that you're traveling, you just fire it up in your hotel, in Starbucks or wherever, and you can start making and receiving Skype calls completely free of charge," Zinnstrom said.

Roughly 850,000 people each day use Skype software to place phone calls from their computers. By routing calls over the Internet, users avoid long-distance fees and connection charges.

"Voice over Internet" technology has grown rapidly in popularity over the past year, with start-ups like Vonage offering flat-rate calling packages and established giants like AT&T Corp. jumping into the act.

Privately held Skype's new PocketSkype software allows users to make Internet calls on the go.

The service has limitations. Users need a handheld computer running Microsoft Corp.'s Windows Mobile 2003 operating system with "Wi-Fi" Internet connectivity, and must be within range of a Wi-Fi hub.

A phone headset would also help, the company says.

Users will be able to talk to others on the Skype network for free, but they will not have the ability to dial traditional phone numbers.

Zennstrom, who developed the Kazaa file-sharing network several years ago, said the service would come in handy for users looking to reduce their mobile-phone bills, especially those who call internationally.

"The price is pretty much a huge difference, since Skype is free and cell phones are extremely expensive," Zennstrom said in a telephone interview.

The company expects to release updated software within the next three to four months that will allow users to call traditional phone numbers, he said.

Though the service will not be free, "We will do that at a very competitive rate," he said.

© Reuters