Cut The Cost Of Your Mobile Phone Bill

Is Skype's new venture in 'free calling' all it's cracked up to be?

This week, Skype took a dramatic step into the highly competitive mobile phone market, launching the first mobile handset to enable free calls over the internet -- and I was one of the first people in the UK to test it out.

So is this a phone that is going to revolutionise telecommunications in the UK and save you oodles of cash -- or just another gimmick that is not worth the initial set-up costs? 

What is it?

In conjunction with mobile phone group 3, Skype has created the 3 Skypephone: a 3G internet phone with built-in Skype that also works as a normal mobile phone.

It goes on sale in the UK on Friday for £49.99 on a Pay As You Go tariff -- or you can get it for free when you sign a contract.

Skype, an internet communications company, already enables you to talk to anyone else on the Skype network from PC to PC for free, or to call a mobile or landline for a charge.

Skype has about 246 million registered users worldwide. While it is already possible to access Skype from a number of mobile handsets, this has involved downloading third-party software, something that has put-off the majority of users.

What's all the fuss about? 

So now you know what it is, you need to know whether it's worth the money. To figure this out, I decided I had to try out a 3 Skypephone myself.

I must admit that (as I am a Skype virgin, am generally not very technically-minded and was armed with nothing but a manual and a pair of itchy fingers) I was sceptical about whether I would be able to get it to work.

But, registering for a Skype was surprisingly simple. All I had to do was think of a username and password, type it into the phone, and I ready to go within five minutes. PC users can download the software directly from the Skype website.

Before I knew it I was talking to another Skype user, albeit across the room -- but the sound quality was good, and without the time delay you may expect on some phone calls. I was told I could now connect to any Skype user on a PC or 3 Skypephone around the world, at no additional cost to my usual bill.

I could now potentially shave hundreds of pounds off my phone bill, without having to be near a PC to do it.

However, it's not all good news. There are restrictions on the service which means it may not be right for you:

• Those who are not currently on the 3G network will need to fork for a new phone, with a £10 minimum monthly top-up if you wish to use the Skype service, or sign up for an 18 month minimum contract (minimum £12 a month) if you want the phone for free.
• Even if you are already on the network, unless you have one of 3G's ‘X-Series' phones (which is already Skype enabled), you will need to buy a new handset to take advantage of the deal.
• If you take your phone abroad, you will currently only be able to make free Skype calls from Austria, Italy, Sweden, Denmark, Australia, Hong Kong and Ireland. Outside these countries, the Skype service becomes redundant.
• There is a fair use policy of 4,000 Skype minutes (about 70 hours) and 10,000 messages (a ceiling only reached by the most avid of Skype users perhaps, but worth pointing out).

In addition, unlike the PC version, you cannot call non-Skype users on their usual mobile number using the service - even for a fee.

However, if you're not planning to use the phone specifically for roaming, are a regular Skype user and know a lot of others on the Skype service, then this new phone will eliminate scratching away at those calling cards and give Skype users access to free calling in their pockets.

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