AT&T Relents, Opens iPhone to Skype, VoIP

Bowing to openness pressure from the FCC, AT&T renounced on Tuesday its opposition to internet telephone calls that use the iPhone's 3G data connection.

In short, Skype on the iPhone is now OK by AT&T, the company said in letters to Apple and the FCC.

AT&T's change of heart comes just after the FCC controversially announced that it was planning to extend internet openness rules to mobile networks. The wireless carriers are fighting back, arguing that wireless networks are not robust enough to operate without intense network management.

AT&T made no mention of the FCC in its announcement, crediting the change instead to a routine examination of its policies.

"IPhone is an innovative device that dramatically changed the game in wireless when it was introduced just two years ago," said Ralph de la Vega, AT&T's president of Mobility & Consumer Markets. "Today's decision was made after evaluating our customers' expectations and use of the device compared to dozens of others we offer."

Now the only thing standing between iPhone users and VoIP applications is Apple and its inscrutable app-approval process.

Apple and AT&T had a secret agreement to ban apps that would let iPhone users make phone calls using the wireless data connection, a fact that was revealed this summer when the FCC asked the duo to explain why Google's innovative Voice app was rejected for the iPhone store.

So for instance, Skype, the world's most popular phone service, had to cripple its application so that it would only work when an iPhone was using Wi-Fi. Skype users can call each other for free, and Skype international calls are substantially cheaper than ones placed through a traditional carrier.

The iPhone store is the only way to install apps on Apple's category-defining device without voiding the warranty, which led the FCC to investigate if AT&T and Apple were colluding to prevent competition.

In a bit of hairsplitting, AT&T has long maintained it doesn't block Skype -- which has uncrippled apps that run on other phones the company sells. Instead, it's just had Apple block the application. AT&T likely fears that Skype users will opt for plans with fewer voice minutes if they can bypass AT&T's voice channel, but that fear seems to have given way to a greater one -- new regulations from an emboldened FCC.

AT&T denied it had anything to do with blocking the Google Voice iPhone app, which, unlike Skype, uses the minutes on a cellphone plan -- though it does offer cheap international calls and free conference calling, among other features.

For its part, Apple says it never even rejected Google Voice -- it's just still studying it to make sure it doesn't confuse users.

Skype president Josh Silverman welcomed the announcement but argued that the government still needs to mandate openness: "We applaud today’s announcement by AT&T to open up its 3G network to internet calling applications such as Skype. It is the right step for AT&T, Apple, millions of mobile Skypers and the internet itself. Nonetheless, the positive actions of one company are no substitute for a government policy that protects openness and benefits consumers."

Photo: Flickr/Cloneofsnake

See Also:

• Apply Net Neutrality to Skype on Smartphones, Group Asks Feds
• Ears-On With Skype for iPhone
• Apple Told Us in July That 'Voice' App Would be Rejected, Google Said
• Open Mobile Internet Now!
• Group Calls Foul on AT&T Blocking Some iPhone Video Apps
• Google Voice App Rejection: AT&T Blames, Apple Denies, Google Hides
• Feds Want Apple and AT&T to Explain Google Voice Rejection