FT.com / Companies - AT&T can block cheap net calls on iPhone

I suspect this will ultimately become another chapter in the “Dawn of the Stupid Network” story

The terms in AT&T’s exclusive US contract to provide connections for Apple’s iPhone give the telecommunications giant the power to veto online store applications that use AT&T to launch cheap calls through the Internet, the companies disclosed late Friday.

So far, the alliance has limited the use of approved Voice over Internet Protocol applications, including Skype’s, to WiFi hotspots, so as not to undercut AT&T’s model of charging for calls. But AT&T said “We plan to take a fresh look at possibly authorizing VoIP capabilities on the iPhone for use on AT&T’s 3G networks.”

FT.com / Companies - AT&T can block cheap net calls on iPhone