Vodafone's VoIP cut criticised by BT

After Vodafone chose to remove VoIP software from its Nokia's N95 phone to stop users making cheap calls over the internet, worries had emerged that a precedent had been set which could halt the growth of VoIP into mobile handsets.

But such predictions are misguided according to David Woodbridge, BT Retail's chief of devices, as "more than 50 per cent of handsets are sold by independents".

Mr Woodbridge, speaking at a summit in Shanghai, said that moves to block services will not succeed as users will turn to independent retailers which are not governed by the rules of Vodafone bosses.

The approach taken by Vodafone and other providers like Orange and T-Mobile was a "beautiful walled garden approach", according to Mr Woodbridge, but he claimed that "customers want to go beyond the walled garden".

Looking to the future, he expected VoIP companies force the pace of mobile VoIP growth by advertising the ease which customers can install VoIP clients on their mobiles and highlighting the savings that this could offer them.