Skype and Google Voice are both applications which allow users to converse with each other over the internet, without having to pay phone call fees. Google’s own Voice over IP (VoIP) Google Voice was turned down by Apple’s application store, to a great furore by Google. However, it has now emerged that they themselves have made a deal with Android carrier T-Mobile, to stop similar VoIP application Skype from being added to any of their own devices.

Andy Rubin, Google’s vice president issued a statement on their Public Policy Blog saying “Here are the facts, clear and simple: While the first generation of our Android software did not support full-featured VoIP applications due to technology limitations, we have worked through those limitations in subsequent versions of Android, and developers are now able to build and upload VoIP services.” However, he also mentioned that “at this point no software developer – including Skype – has implemented a complete VoIP application for Android.”

It remains to be seen whether any VoIP will now be implemented onto Google’s Android platform. However, whilst Mr Rubin’s admittance that developers are now capable of building the technology, it seems unlikely that VoIP application will ever make their way onto a platform whose main income stream stems from phone calls.

EBay, who bought the company in 2005 for £1.6bn said that they were trying to create alternative software, before adding that if this failed and they were unable to retain the rights to the current technology “Skype would be severely and adversely affected.”

“In particular, Joltid has alleged that Skype should not possess, use or modify certain software source code and that, by doing so, and by disclosing such code in certain US patent cases pursuant to orders from US courts, Skype has breached the license agreement,” they added, before explaining “Although Skype is confident of its legal position… Skype has begun to develop alternative software to that licensed through Joltid. However, such software development may not be successful, may result in loss of functionality or customers even if successful, and will in any event be expensive.”

Skype continues to grow with eBay reporting revenue of $170m, up 25per cent on the same second quarter for 2008. With 480.5m users, it is globally the largest international calling mechanism.

In reply to EBay’s statement Joltid said “Skype has breached its licence and infringed Joltid’s intellectual property. As a result its licence has been terminated. Joltid is enforcing its rights in the courts. Like any member of the creative industries, Joltid will defend its innovations with determination. It is certain of the validity of its position and looks forward to the resolution of the issue.”