At the GSMA World Congress in Barcelona, Nokia announced that it would be partnering with Skype to provide Voice over IP functionality on future handsets starting with the forthcoming Nokia N97 smartphone.

Rather than running Skype as a seperate application for Symbian, Nokia will be integrating Skype with the built-in address book to allow simple and direct calling/answering of Skype contacts.

The Nokia N97 handset provides both 3G and 802.11b/g WiFi connectivity so owners should be able to use Skype wherever they are.

Skype is a proprietary peer-to-peer VoIP protocol and as such can only communicate with other Skpe devices. There is no word yet as to whether the Nokia N97 or other future Nokia handsets will be supporting any open VoIP protocols such as SIP which would allow for greater interoperability.