Skype is a telecommunications application that allows users to make video and voice calls over the internet. It also provides messaging services. Users can transmit text, images, and video messages and share files. Skype calls between Skype users are free, but a subscription is needed to call phones. Skype uses technologies like VOIP and a peer-to-peer network to transfer calls through other users' computers for lower costs. While most services are free, Skype makes money through subscription fees for calling phones and selling Skype credit.