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Wednesday, October 07, 2009

AT&T Reverses Policy on VoIP Software on iPhone

By Ken Sweet

FOXBusiness

In a turnaround from its previous stance, telecommunications giant AT&T (T) said early Wednesday it will allow Internet-based calling on Apple's (AAPL) popular iPhone.

The shift comes after increasing pressure both by the public and federal authorities into why AT&T would block competitors like Google (GOOG) from creating voice-based products on iPhone, which is carried exclusively by AT&T as part of an agreement between the two companies.

“Today’s decision was made after evaluating our customers’ expectations and use of the device compared to dozens of others we offer," said Ralph de la Vega, president and CEO of AT&T mobile device division, in a statement.

The change will now allow iPhone customers to install and use Internet telephony products such as Skype on their phones instead of using their AT&T cellphone minutes.

Pressure on AT&T started two months ago after Google Voice was rejected by Apple's App Store, despite other Internet telephony products being allowed on other AT&T 3G products.

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