When Nokia announced that it would be adding Skype to the feature list for the N97 smartphone consumers were happy, but the mobile service providers were not. O2 and Orange have both blocked the sale of the N97 in their stores until the Skype feature is removed.

I guess the thought of Skype offering IP calls on their networks at a lower cost to customers was more than O2 and Orange could take. Sources say that the providers don’t want to become so-called "dumb pipes".

Skype says, "Skype does not comment on rumors, however, our beliefs are clear. Skype believes that consumers should be entitled to an open Internet whenever and wherever they want to have a conversation."

Via TrustedReviews