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Skype for iPhone Sparks Battle Between Consumers and Carriers

The release of an official Skype application for the iPhone appears to have been controversial for both mobile carriers and consumers. The Voice-Over-IP software allows iPhone users to make phone calls over Wi-Fi to other Skype users or even to regular landline phones. Obviously, such functionality could compete with mobile carrier's own voice services.

As a concession, Apple has prevented the use of such applications over cellular data networks (EDGE or 3G) and only officially allows it to run on Wi-Fi. (Strangely, several readers have noticed that the Skype application presently does work over 3G when running beta iPhone 3.0 firmware, but that may simply be an oversight on the part of Apple.)

T-Mobile in Germany, however, threatened that it may take action to prevent its customers from using Skype on the iPhone. On the flip side, an open-Internet advocacy group is asking the FCC to see if AT&T and Apple are violating federal rules by restricting Skype to just Wi-Fi.

Free Press and other consumer advocates want the FCC to affirm that so-called net neutrality protections also cover wireless networks. That would prevent AT&T or other operators from blocking services like Skype on their mobile networks.

Skype has proven to be massively popular on the iPhone and iPod Touch reaching over one million downloads in the first two days of availability.

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37 months ago
Good, the more competition between carriers/developers the better for consumers.
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37 months ago
pardon my french, but EFF the carriers
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37 months ago

Good, the more competition between carriers/developers the better for consumers.


Agreed. Not to mention a strong push forward in the use of cellular signals for tasks other than talking on them through traditional methods.

Skype made headlines for allowing VoIP, not VoCell. LOL. No wonder Cell Carriers would get upset... basically use your unlimited data plan to make all your calls on and never worry about minutes again. That's how it should be, anyway.
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37 months ago
Hmm, I've never used Skype, I might have to give it a try and I am often on a WiFi connection.
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37 months ago
Skype works over cellular network with OS 3 beta... Really? I know what i'll be trying out later.... ;)
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37 months ago
editorial correction: Apple is not making a concession by disallowing Skype over 3G.

While I don't see why someone would prefer Skype to making a 3G call (except for international). I think Apple is wise to introduce Skype which will open the door for Skype video conferencing over Wi-Fi with the new iPhone's speculative front facing cam. ATT's network will likely not be ready for video conferencing by the next release of iPhone but such a feature over Wi-Fi could be good promotional material.
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37 months ago
Skype works over edge on iPhone 3.0 firmware as well. I thought it was really going to suck but it wasn't that bad. I haven't tried carrying on a long conversation over it though.
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37 months ago
at least they should allow 3g data usage if u calling outside your country.
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37 months ago
I wouldn't worry too much. The UK carriers tried to kick up a fuss when Nokia announced the N97 would have Skype integrated into it.

They caved in when Nokia pointed out that they could pretty much sink any of them by blocking their handsets from being sold by those carriers who didn't play ball.
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37 months ago
AT&T should worry more about making there own service work better if they want people to stay away from this.

Won't the inevitable iChat app have the same functionality? (minus the connection to actual land lines) Does that mean T-Mobile will be looking to ban an Apple app?
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