The phone is code- named the "white phone" and is scheduled to launch in late October in Britain, Italy, Hong Kong and Australia, and will be introduced in 3′s other five markets later according to BusinessWeek.

The Skype mobile phone was created with software company iSkoot, which develops Skype software for a number of mobile devices. The phone has multimedia capabilities and high-speed data for mobile browsing. The Skype mobile features a button above the keypad, which is used for making long distance and international calls. The phone displays Skype buddies along with regular phone contacts.

VoIP on cell phones has not been a major trend. "There are a lot of reasons why mobile VoIP has not yet taken off-and they differ by region," says Stephan Beckert, a TeleGeography analyst. "In the U.S., a key reason is that mobile operators are deliberately trying to keep their customers from being able to use it."

Skype hopes that it will be able to capitalize on overseas growth by offering it mobile VoIP service in markets where the company has had success.