Unlimited Skype From 3 Costs As Little As 1p

Punters are selling 3 SIM Cards, which allow you to get free Skype without having to top up, for as little as 1p; 3 sells the same SIM Card with £10 credit for £9.99. 3 UK launched a free, unlimited, no contract Skype service for its users on Thursday.

The cheapest new 3G PAYG phone from 3 is a pink Sony Ericsson Z750i clamshell smartphone which comes with a SIM card and a £10 topup for only £58.93, essentially bringing the price down to £48.93. Alternatively, you can grab the old Skypephone S1 from Computer Exchange for £40 delivered.

Alternatively, prospective customers could either buy 3's cheapest promotional plan - which comes with free instant messaging, 100 minutes or texts, free voice mail and a phone - for only £9 (that's £172 for the duration of your contract.

Skype and 3's partnership could well disrupt the UK mobile phone market by winning customers willing to cut costs. Competitors will not have much to reply with.

The big four have already said that they will not allow Skype or indeed any other VoIP service on their networks. Read about the 5 ways Skype & 3 will change UK's mobile market.

More details have yet to emerge though as the deal becomes official in May 2009. Three currently charges PAYG customers 12p per minute and 12p per text.

It is not known whether 3 will require users to have an active SIM card and if yes what the definition of an active SIM card will be. You can find the 1p Ebay here while the £9.99 3 SIM card can be purchased online.