Skype on iPhone a hit despite limitations
The Skype application for the iPhone is the best selling product in the App store for nine different countries just two days after release. But consumer groups are complaining that the service is unfairly limited by Apple’s agreement with carrier AT&T.
The iPhone edition of Skype looks and works very similarly to the full desktop edition and supports text chats as well as voice calls. It doesn’t include the conference calling or video chat features of the full edition (which is unsurprising given the lack of an appropriately-placed camera on iPhones). Most reviews so far say audio quality is generally pretty clear.
The big limitation is that the iPhone Skype service works over Wi-Fi rather than the cellphone network. That restricts the locations it can be used in and makes it particularly vulnerable to dropped signals for users on the move.
The restriction is imposed by AT&T for logical enough reasons: if people could use Skype on the cellphone network, they could make long-distance and international calls, but AT&T would potentially only get the money for a local rate call. Under this system, AT&T at least rack up whatever the call costs in data charges.
At the moment, there are no rules preventing firms imposing such restrictions on cellphone services. However, the Federal Communications Commission says this may be reviewed. Acting chairman Michael Copps told USA TODAY: “In the fast-changing world of technology, you have to constantly revisit the rules and regulations to make sure they’re in accord with the real world.”
Skype has also announced a BlackBerry edition of the software will be available soon. Unlike with the iPhone, it will work through the relevant cellphone network instead of a Wi-Fi connection. All calls will be charged at local rates regardless of their destination.

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