Skype uses voice over Internet protocol (VoIP) technology.

Although Skype is not the only company that offers VoIP services for consumers, it functions on a P2P model rather than as a centralized application. With the P2P model, users download a piece of software that allows computers to communicate directly with one another, without having to be routed through a central location. This decentralized model allows Skype to function as a robust, distributed medium for communication.

Skype is an application that can turn personal computers into communication channels.

Currently individuals and businesses use Skype to...

• make free video and voice calls;
• send instant messages;
• share screens; and
• share files with other Skype users.

"In the third quarter of 2009, Skype users made 27.7 billion minutes of Skype-to-Skype calls, and over a third of these were video calls"

Everyday, people also use Skype to make low-cost calls to...

• landlines; and
• mobiles.