Skype works sort of like MSN messenger. You register for free, and you get an username, to which you can use to talk with someone over the internet, with a microphone, audio, and even a webcam - it can be through text too. The beauty is, you can buy credits for it, and use it to call regular phone numbers, even internationally, by paying the same as a local call. The Sype system redirects the call through the internet, and into a phone located at the city you are calling, therefore, making it a local phone call. You can also subscribe for an actual phone number, which re-directs the calls into the Skype program no MATTER where you are - this feature is only presente in some countries, Brazil, USA, I belive in Europe and Canada as well. If I subscribe it with a phone number from São Paulo Brazil, and I'm working in England, they can call into the São Paulo number, paying only for a local call, and Skype will redirect through the internet into my computer, and I'll be able to call them. Skype even offers real voIP phones you can hook up to your computer or internet connection, and using you Skype login, have it as a real phone - with the same features as the program.

I'll be moving real soon, and I won't sign up a phone number anymore. I'll hook up the internet there and buy Skype credits and a phone number through it.