Skype Goes Mobile

Bit by bit, big names in the computing world are barging into the cell-phone business. First came Apple's (AAPL ) game-changing iPhone. Next came word that Google (GOOG ) is creating its own software platform for a new breed of cell phones.

Now Skype (EBAY ), which popularized free and cheap phone calls over the Internet, is set to launch a customized cell phone developed jointly with 3 Mobile, a wireless carrier in Europe, Asia, and Australia. Code-named the "white phone," the Skype handset will be introduced by late October in Britain, Italy, Hong Kong, and Australia, and will reach 3's other five markets later, BusinessWeek has learned. There are no immediate plans to bring the device to North America, though the companies may try to license it to other carriers or sell versions straight to consumers for them to use on other networks.