3 UK gives away SIM cards for free Skype calls

LONDON, Sept 24 (Reuters) - Hutchison Whampoa's (0013.HK) 3 UK, the smallest of Britain's five mobile phone network operators, is giving away SIM cards for users to make free calls using Internet phone service Skype, it said on Thursday.

The company, which has helped drive down prices in Britain's fiercely competitive mobile market, said it would give away two SIM cards per person, allowing them to make free Skype-to-Skype calls and send free instant messages to other Skype users.

3 says it has found that its regular Skype users are more loyal and higher-margin customers, thanks to the fact that they pay for more minutes of non-Skype calls and browse the Internet more than others.

The free SIM service will be available to anyone, including those who are not currently customers of 3. Users will need an unlocked, third-generation (3G) phone. (Reporting by Georgina Prodhan; Editing by Greg Mahlich)