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skype (pronounced /?ska?p/) is a software application that lets users make voice and video calls and chats over the internet. calls to other users within the skype service are free, while calls to both traditional landline telephones and mobile phones can be made for a fee using a debit-based user account system. skype has also become popular for its additional features which include instant messaging, file transfer, and video conferencing. skype has 663 million registered users as of 2010. the network is operated by skype limited, which has its headquarters in luxembourg. most of the development team and 44% of the overall employees of skype are situated in the offices of tallinn and tartu, estonia.

unlike other voip services, skype is a peer-to-peer system rather than a client–server system, and makes use of background processing on computers running skype software; the original name proposed – sky peer-to-peer – reflects this.

some network administrators have banned skype on corporate, government, home, and education networks, citing reasons such as inappropriate usage of resources, excessive bandwidth usage, and security concerns.