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IPhone's Limits On Skype Draw Consumer Activists' Ire

Consumer advocates say that AT&T is trying to handicap a direct competitor by restricting the new Skype Internet calling feature on the iPhone to Wi-Fi and not allowing it on its cellular or 3G network, Leslie Cauley reports. Chris Murray, senior counsel to Consumers Union, says that the arrangement "highlights the urgent need for Congress and the Federal Communications Commission to clarify that the wireless Internet will be open just like the regular Internet."

Jim Cicconi, AT&T's top public policy executive, says AT&T has "every right" not to promote the services of a wireless rival. Technically, the limitation on Skype and other Internet phone companies is imposed by Apple, which has similar arrangements with other carriers. Apple spokeswoman Jennifer Bowcock says the company "has always said" that Internet phone applications for the iPhone and iPod Touch would be limited to Wi-Fi.

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