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How does Skype make money?

BY Victoria Knight | 02-23-2010 | 10:46 AM
This blog is written by a member of our blogging community and expresses that member's views alone.


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Skype, owned by an investor that includes eBay, is a communication software program that enables users to make free audio and video calls to one another. Users can also send instant messages and data files to one another at no cost. Since its conception in 2003, Skype has become responsible for close to ten percent of the world's international phone calls. Like other VOIP providers, Skype uses the Internet connection to transfer the analog and digital information. As technology progresses, the rapid connection speeds enable Skype users to utilize these services without much interruption. It is this technical progression and reliability of Skype has aided in its increase in popularity over the years.

Once the Skype software is downloaded to a computer running Windows, the user is pretty much ready to go. A simple account creation and log-in process begins after the software is launched for the first time. The software is generally very user friendly for anyone new to the Skype world. As far as any mandatory equipment, most newer computers come with a sound card, built-in microphone and speakers. It is possible to purchase the necessary equipment compatible with Skype if a user possesses an older model computer, though. As the Skype website explains, audio quality would improve greatly if the user obtains a headset. However, that piece of equipment is not mandatory.

Skype is easy to use, doesn't require a lot of additional equipment for the average computer user and services are reliable. At this point, all of this information may leave you wondering what the catch is. The truth is, there isn't a catch. So, you are probably wondering just how Skype makes its profit. With this software, it is also possible to use the program and all of its features to contact people without Skype on their cell phones or land-line phones. In addition, there are features, such as voice-mail, that are all available for reasonably low fees.

 

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