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Skype client for iPhone to debut at CTIA Wireless

By CAROLINE GABRIEL

Published: 27 March, 2009

READ MORE: iPhone | Skype

Although Apple has not confirmed it, there are numerous reports circulating that it finally has a Chinese carrier deal, with China Unicom. This is a rapid switch which appears to have come about after the breakdown of talks with market leader China Mobile. But the vendor may face further friction with its cellco partners if it allows SKYPE to launch its application on the iPhone.

Skype has been significantly stepping up its mobile activities in recent months, with its new cellphone-optimized Skype lite client. It plans to unveil a version of its app for the iPhone at next week's CTIA Wireless show, according to the usually accurate GigaOM blog. The eBay unit has a press conference scheduled for Tuesday, just ahead of the show opening, and COO

"We have to make sure the call quality is there and the application works really well before we can announce the software for any device," he said in an interview at January's Consumer Electronics Show. "But we will have something for the iPhone as soon as it's perfect."

Judging by the hostile reaction of some cellcos, such as Orange, to Nokia's decision to bundle the Skype client with some smartphones, Apple will not have an easy ride either, especially with exclusive partners that rely heavily on the phone to generate additional ARPU. AT&T is likely to be less concerned than O2 or T-Mobile Germany, since US cellphone plans usually include domestic long distance calling as part of a large bundle of minutes, making Skype less appealing. But outside the US, and for international callers, Skype can significantly undercut cellco rates.

Apple may get round carrier complaints, at least to some extent, by restricting the iPhone app to Wi-Fi, as it has with other third party services like Fring, which offers access to Skype. This means Skype cannot become a wide area, ubiquitous service like a 3G offering, especially in rural areas where they may be limited Wi-Fi available.

However, it will further strengthen the non-cellular iPod Touch, which despite having only a Wi-Fi connection, generates more data traffic than any other mobile device except the iPhone itself, according to mobile advertising network AdMob. On the firm's hosting network in February, it said the iPhone generated 11.2% of traffic, the iPod Touch 6.7% and the Motorola RAZR was third on 2.9%. Among smartphones, the iPhone came top, especially in the US, followed by the Nokia N70. There was no Windows Mobile handset in the top 10 generators of traffic, at least on AdMob.

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