UK 3G mobile phone operator Three (Hutchison) has confirmed that they are working together with a "leading Internet communications company" to develop a mobile VoIP (Voice-over-IP) phone, which offers to make "free Internet calls completely mobile".

It's believed that the unnamed company may in fact be Skype and we wouldn't be surprised if the end-product also fell neatly into Google's long held plans to have its own mobile phone.

Meanwhile other operators have been more aggressive towards VoIP, fearing a loss of call revenue. No further details have been revealed.