What VoIP over 3G on the iPhone Means

After blocking the use of VoIP applications over its 3G network on the iPhone, AT&T has decided to remove the prohibition. Apple can now enable Skype and other VoIP applications to work over their 3G network. Such a decision must have been at least partly influenced by pressure, both from the FCC and users. But what does this mean for you?

Up to now, you could use VoIP applications on the iPhone only over Wi-Fi, which was quite restrictive with regards to the physical area in which you could do this. Now you can make and receive both local and worldwide calls over AT&T's 3G network, which spans over nearly every inhabited place. And for free. If both you and your contact are logged in on the same VoIP service, you can talk unlimitedly for free, thus bypassing the expensive mobile charges. Think of how much money you can save on international calls.

Now what can this mean for AT&T? In the short term, they will lose money but they could win on user amount as more people will join their 3G service with iPhone. Fewer people will pay the mobile calling minutes but more people will pay the 3G data plan.

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