Deutsche Telekom threatens to block use of Skype on iPhone

Deutsche Telekom is threatening to block its customers from using the new Skype application on their Apple iPhones, an indication that telecom providers feel threatened by the rise of mobile VoIP, or voice over Internet protocol, software. The Skype application, released this week, allows users in a Wi-Fi zone to make free calls to other Skype users and place calls to landlines and other mobile phones at a low rate. While mobile VoIP usage is limited today, it is expected to grow dramatically in the coming years as reliable high-bandwidth Wi-Fi becomes more prevalent. Deutsche Telekom, which markets the iPhone on an exclusive basis in five European countries and a non-exclusive basis in several others, is known for having restrictive rules that govern the use of applications on its handsets.