Skype (pronounced to rhyme with ripe) is a peer-to-peer internet telephony network, founded by Niklas Zennström and Janus Friis, the creators of Kazaa. The Skype code and protocol remain closed and proprietary, but potential users can download it for free from the official site. Skype users can speak to other Skype users for free. The software also includes a SkypeOut feature which allows Skype users to dial regular telephones, for a fee. This is 0.017 Euros (US$0.02) per minute to many countries..........
Unlike international long-distance calls made from conventional phones, which are rated according to the relative distance between countries, SkypeOut bills all calls according to the relative prosperity of the country, the volume of calls made from and to a given country, access charges such as those to mobile (cell) phones. This rating method is used due to the fact that calls are rated the same regardless of place of origin.
This way, a SkypeOut user will be billed the same for a call placed to a phone number in London, whether the user is calling from his/her PC in London itself, from an internet cafe in Sydney, or from Honduras. The Global Rate which is the one used for many countries, and all First World countries, is currently 1.7 Euro Cents per minute. Credit, which is necessary to use SkypeOut, is usually purchased via credit card or online services such as PayPal or Moneybookers. The current deposit is either 10 or 25 Euros but if the service is not used for 180 days this expires automatically.
Source: *en.wikipedia.org/wiki/Skype accessed Friday, July 08, 2005.
Keith