Because Skype eliminates the middleman, calls between its users are free. The company generates revenue by selling services that allow subscribers to make calls to people who haven’t downloaded the software. A connection from a Skype-loaded device to a traditional telephone in most places generally costs about 2 cents per minute. And, according to the company (and some of its subscribers), Skype’s sound quality is better than typical telephone reception, primarily because it is not limited to the standard telephone transmission spectrum of 300 Hz to 3 kHz, a relatively narrow bandwidth.
http://www.strategy-business.com/enewsarticle/enews062905?pg=1
