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Ebay's (EBAY) Skype to Launch Apple (AAPL) iPhone Software

March 30, 2009 9:01 AM EDT
EBay Inc.'s (Nasdaq: EBAY) Skype unit plans to release a version of its Internet-based phone software for Apple's (Nasdaq: AAPL) iPhone, according to the WSJ.

The move, set to be announced tomorrow, puts Skype more directly in competition for wireless voice services with network operators such as AT&T (NYSE: T) and Verizon Wireless (NYSE: VZ).

Skype's software will allow iPhone users to call other Skype users on computers or supported cellphones free if they are in a Wi-Fi hot spot. Or they may call land lines for a fee, typically 2.1 cents a minute.

Skype uses VOIP, which treats calls as data like email messages or Web pages and routes them over the Internet, rather than a traditional phone network.

Skype's move into cellphone communications could threaten the business models of wireless carriers, which generate most of their revenue from cellphone calling plans.

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