Skype and Nokia today announced a partnership that will integrate the Skype into future Nokia handsets, starting with the N97 that is set to be released in the 3rd quarter of the year.

Skype

Nokia said that Skype will then form part of the N97's address book.

Owners of the N97 and other high-end N-series phones to be rolled out later will also be able to use 3G/HSDPA and WWIFI to make and receive free Skype-to-Skype voice calls, apart from cheap Skype calls to landlines and mobile devices.

Skype now has 400 million users worldwide.

According to reports, telcos were scared before of Skype for fear it would steal revenues from calls, especially international calls, but the rise of flat-rate mobile internet connections have softened their views.