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Skype Moves Into Mobile

The cell phone business has been another big growth area for large tech companies. Apple and Google have both charged into the space in the last year, and they're now being joined by Skype, the Web's largest voiceover IP provider. The eBay company is apparently developing a customized cell phone to run on telecom giant 3 Mobile's network, which spans Europe, Asia and Australia. The device, codenamed the "white phone," will be introduced by late October in Britain, then Hong Kong, Italy and Australia. The phones have a large button above the regular keypad that brings up Skype's mobile software.

It's interesting that a major carrier would back a product coming from a company whose technology is potentially disruptive to the telecom business model. Indeed, most carriers have blocked Internet phone services on their networks because they fear services providing phone technology at such a low cost.

Which is why Skype's entry into the mobile market would be a serious threat to Verizon and AT&T. However, there is no plan for the company to enter the market in North America. That could change if eBay decides to bid on the open spectrum that goes up for auction in January.

Read the whole story at Business Week »

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