The peer-to-peer VoIP technology that has been harassing the wireline voice industry just gained another foothold in the wireless world. Skype users can now send SMS messages to any GSM phone.

U.K. software developer Connectotel announced today that it has developed an application that allows Skype users to initiate chat sessions with users on GSM phones, turning IM messages into mobile text messages that can be sent anywhere around the world. The application, which Connectotel launched in Beta form today, pairs with Connectel's Skype-to-SMS gateway, which allows mobile users to send an SMS message to a Skype account. The added functionality essentially creates a SMS chat application over the mobile network.

Skype has been getting the jump over its VoIP competitors with its innovative business model. Though its service is bare-boned, its peer-to-peer VoIP service, which connects two PCs over the Internet, has remained a free service, allowing more technically savvy users to bypass the IXCs with a mere broadband connections. Slowly Skype has added more paid functionality to the network, allowing for the termination of calls on global PSTN networks, and allowing outside users to call customers on the Skype network.

Recently though, Skype has been moving into the wireless network, adding capabilities that allow some PDAs to access the Skype network through hotspots, basically replicating the mobile network.