An offshoot of Internet-based phone services like Vonage, the new Skype software allows personal computer users with broadband connections to make free calls between system users or for pennies a minute to connect to conventional land-line phones and cellular devices.

If you recall the music file-sharing wars a few years ago, you'll better understand how Skype works. Skype's developers claim voice files are transferred between computers the same way millions of people traded songs on Kazaa, Grokster or the original Napster site. But unlike old file-sharing systems, Skype automatically encrypts voice files before sending them through the Internet. Likewise, on arrival everything is decrypted on-the-spot and presented as crystal clear speak, text or a file transfer nobody can intercept, the company says.

An interesting feature of the Skype system: Their site features a global user directory amounting to a giant phonebook of all the people who use Skype as well as an instant messaging system. Another advantage is Skype's ability to share voice files with users regardless what software platform they use (Mac OS 10, Linux, Pocket PC or Windows).

For those wanting to using their computers to call mobile phones or land-based phone numbers, the company also offers the SkypeOut plan that allows users to call anywhere in the world for what amounts to local phone rates.

Company founders claim to have 2 million Skype users in the United States, and more than 13 million worldwide. And, if you're worried about Skype getting overloaded, think again: More than a half-million users are typically connected at any time and the networks has handled more than 1 million simultaneous users.

Engadget November 8, 2004

Dr. Mercola's Comments:

I am really surprised that more people haven't taken advantage of the Vonage phone service since I first wrote about it on the blog in March. I have been using Vonage at my home and office for over six months and have been saving over $500 every month on my phone bills. Although Skype is pretty attractive, it is not as practical in many ways as Vonage because it requires using a computer with a broadband connection and dialing someone else who has a broadband connection and is also using the same service. However, the SkypeOut paid service in which you can call a cellular phone or landline anywhere in the world for pennies a minute does look more practical and inviting. Related Articles: Outstanding News for High Speed Wireless Internet Reduce Your Phone Charges Using the Net