Skype is software that enables you to make free calls anywhere in the world. Skype uses innovative P2P (peer-to-peer) technology to connect you with other users. It offers several features, including SkypeOut calling from Skype to regular and mobile phones worldwide, conference calling, and secure file transferring.

Skype calls have better sound quality than your regular phone and are highly secure, with end-to-end encryption. Version 3.5.0.239 includes unspecified updates.

Editor's review of Skype Slash your long-distance bills

Skype is well regarded for offering stable, free VOIP to other Skype users and affordable calling from a PC to a phone, be it a landline or a cell phone. The most recent upgrade makes getting in touch with friends and family--and even complete strangers--much, much easier.

Functionality still varies depending on your Internet connection and what else you're doing with it while using Skype, but they are making some efforts to improve that. When you finish a Skype call, a Web page opens and asks you about the conversation's sound quality. The clean layout combines familiar chatware functions with a dialing interface, so that calling a phone is as simple as entering the desired number and hitting the dial button.

Improvements include conference calling with as many as nine people, video calling, and a browser plug-in that turns phone numbers on Web pages into links that automatically dial via Skype when clicked. There are also Skypecasts, throwbacks to the party-line multiperson telephone conversations from the mid-20th century.

Overall, we think Skype is a strong contender in the Internet Telephony category, and anyone who's interested in talking for free should give it a try. For international callers who have computers, this program is a no-brainer solution for long-distance bills.