O2 have announced the launch of new VOIP (Voice-Over Internet Protocol) service in the UK.

VOIP is the same technology Skype uses and enables you to make calls over WiFi meaning you effectively get free calls.  

O2's new service is known as "O2 Connect" and will work over any WiFi network in the UK, not just O2's hotspots. O2 connect will be trialled in the UK with 1000 smartphone owners chosen to test the new service free.

Unlike Skype and the vast majority of VOIP services you'll only be able to call UK mobiles or landlines, so those looking to make international calls will still have to stick with Skype.

Long-term we expect some charges to be applied to using the service, perhaps a monthly fee, but the details of that haven't been released yet.  The application required to use O2 connect is available for both iPhone and Android smartphones.

Once we get more news about O2 connect we'll let you know.