Businessweek has learnt that Skype will launch a branded Phone with the help of Hutchinson's Whampoa 3 network by the end of October.
3 already has a X-series range of mobile phones, that allow you to make unlimited international Skype calls to the 246 million or so Skype users.
Surprisingly, the Skype client will be developed by iSkoot, a third party company with expertise in mobile VoIP and small memory footprint environments.
Unlike Google's forthcoming gPhone and Apple's own iPhone, Skype has no plan to release it to other carriers for the time being.
The prospects of bypassing the carrier's network to make calls, both local and international, might at first seem to be like biting the hand that feeds it and it is still unclear how Skype is planning to get its mobile users to fork out money for other paid services.
Businessweek also mentions the prospect of eBay joining in the foray and using Paypal as a payment hub for micro and wireless payments.