3 launches new Skype mobile phone

Mobile phone provider 3 has launched a new handset that will allow users to make free calls over the internet via telephony service Skype.

Users will also be able to use Skype's instant messaging service, 3 said.

But while people using Skype on their computers are able to make cheap global calls to any phone number, this will not be possible via the new 3 handset.

Skype has about 246 million registered users worldwide and is one of the firms reshaping the global phone industry.

Mobile potential

To date, mobile phone companies have been unwilling to let users freely access Skype via their handsets for fear that it would hurt their business.

While it is possible to access Skype from a number of handsets, this has involved downloading third-party software, something that has put off the majority of users.

The Skype-phone will be the first instance of a phone operator launching a mass market device that is designed to allow free calling over the internet from a mobile, 3 said.

"It takes an innovative operator... to challenge traditional thinking and offer the kind of product other operators are still shying away from," said Skype's acting chief executive, Michael van Swaaij.

"It's is now truly mobile. Skype has now taken a giant step forward in the mobile arena.

And chief executive of 3 UK, Kevin Russell, said the firm wanted to make mobile internet more accessible.

"Services need to be simple to access and affordable," he said.

"Mobile has the potential to massively increase access to internet calling."

Global reach

The service, launching on 2 November, will be accessed by a button on the handset.

As well as the UK, the 3 Skype-phone will be launched in countries including Australia, Denmark, Italy and Hong Kong.

Pay as you go customers will have to top up their account with at least £10 each month to qualify for the free Skype-to-Skype calls, 3 said.

MySpace starts Skype call service

Social network website MySpace has joined forces with internet phone firm Skype to allow MySpace users to make calls to each other.

With the service, which starts from the end of November, the two firms say they are creating the world's largest online, voice-connected community.

MySpace users will be able to place free internet calls to other people on MySpace, or to Skype users.

In addition, MySpace users will be able to pay to call landlines and mobiles.

'Natural step'

The Skype option will be added to MySpace's existing instant messaging feature, and will not require MySpace users to download any additional Skype software.

"Internet calling is the natural next step for how our members communicate with each other," said MySpace chief executive Chris DeWolfe.

No financial terms of the arrangement have been released.

MySpace has more than 110 million users, while Skype has 220 million.

Skype founders quit as executives

The founders of Skype, Niklas Zennstrom and Janus Friis, have resigned as executives of the web-based phone firm.

EBay has announced that it will cut up to $1.2bn (£590m) off the potential price it agreed to pay for Skype.

In September 2005 eBay agreed to pay $2.6bn for Skype and make further payments of up to $1.7bn based on Skype meeting various targets.

EBay will reduce the value of Skype on its books by $900m, a tacit recognition that it overpaid for the company.

"I think this is a testament that the Skype franchise is not worth as much as eBay originally thought," said Youssef Squali of the brokerage Jeffries & Co.

Skype generated only $90m in revenue in the three months to the end of June.

Other projects

Ebay said it might pay Skype shareholders another $195m, but only if it sells 50% or more of Skype before then end of March 2008.

Mr Zennstrom, who was chief executive of Skype, will become non-executive chairman and is expected to spend more time on other projects.

After the Skype sale, he and Mr Friis founded an online video company called Joost.com.

Joost, which had previously only been available by invitation, made its software freely available on Monday.