VoIP providers fring and iCall announced this week that their apps for the iPhone 3G  are ready to run in 3G mode on AT&T's network. Moreover, Skype recently indicated that it will soon offer a 3G-capable version of its software for Apple's iPhone 3G.
Previously, all three iPhone apps were restricted to Wi-Fi only. In response to the Federal Communications Commission's investigation into Apple's reluctance to approve Google Voice for the iPhone, however, AT&T announced last October that it would open its 3G network to third-party Internet voice applications on Apple's iPhone.
This week Apple amended its developer agreements to enable VoIP apps for the iPhone 3G on the Apps Store. "I commend Apple's decision to open its platform to 3G calling -- an action that will create new opportunities for entrepreneurs and provide more choices for consumers," said FCC Chairman Julius Genachowski on Friday.
Technology Limitations
Existing users of iCall's app don't need an upgrade to start placing or receiving voice calls over AT&T's 3G network, wrote iCall CEO Arlo Gilbert in a blog. "The 3G block was a server -side block on our end, and it has now been removed," Gilbert wrote. "The only caveat here is that AT&T's 3G network is overloaded big time and call quality will depend upon the 3G signal you are able to get."
Still, having VoIP capabilities on the iPhone doesn't necessarily mean users will be swift to change their calling habits en masse. Among other things, the peer-to-peer calling technology that Skype and other developers currently use is less reliable than the voice capabilities that 3G smartphones deliver directly, noted Lisa Pierce, an independent wireless analyst at the Strategic Networks Group.
In theory, VoIP over 3G "could be quite cannibalistic," but the combination currently features "a lot of latency -- more than the magic cap of 300 ms round trip ear-to-ear for a normal conversation," Pierce explained. "And that may serve as its own deterrent for most people for now."
On the other hand, smartphone users who frequently place international calls may be willing to put up with some uneven performance and the occasional connection snafu to reap huge savings on overseas calls. Skype's international traffic between two Skype users grew 51 percent in 2008, and is projected to grow 63 percent in 2009, to 54 billion minutes -- even as the growth of international telephone traffic has slowed overall, reports Telegeography. (continued...)
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