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EBay Inc's Skype is working with British mobile phone service operator 3 to produce a handset that will allow users in Britain to make free calls on the Internet, a spokesman for the company said on Friday.
A spokesman for 3 confirmed that the group was working to make Internet calls mobile but would not confirm any further details. The phone is expected to work in the normal way but to include a Skype function to contact other Skype customers.
Skype uses an Internet connection to place a voice call, cutting out the telephony network for which telecoms operators charge by the minute. Skype calls to other broadband-connected Skype users are free.

Copyright Reuters, 2007

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