The Skype phone

Computer cellular expert Skype, a division of eBay was showing its first Skype phone.

I got to see a real working model in action. It was a GSM model that contains new software allowing you to make Skype calls over regular cell phone networks (not over Wi-Fi or via computers).

As with current Skype appliances, Skype-to-Skype calls are free -- and current rates prevail for Skype to other types of phone calls. I was told that the audio quality of Skype calls made on the phone were indistinguishable from GSM cell phone calls via the same phone.

The cell phone hardware I saw works only on overseas GSM cellular networks -- but Skype says it is in talks with U.S. providers to have its software incorporated into phones made for the U.S. marketplace. Stay tuned.