Skype's iPhone limits irk some consumer advocates

Apple's unique treatment of the new Skype Internet calling feature on the iPhone — the free app works only on Wi-Fi, not the cellular or 3G network — is raising concern among public-policymakers and consumer advocates. They say it's a clear example of AT&T, the sole carrier of the iPhone in the U.S., trying to handicap a direct competitor. "Consumers will pay the price for AT&T's blocking," says Chris Murray, senior counsel to Consumers Union. By using Skype on the iPhone, consumers can sidestep AT&T, allowing them to get by, potentially, with cheaper voice plans that offer fewer minutes. Consumers can also save a bundle on international calls. Technically, the limitation on Skype and other Internet phone companies is imposed by Apple, which has similar arrangements with other carriers.