Skype is an application that allows users to make free phone and video calls over the internet. It also offers the ability to call normal phones for a fee by renting local phone numbers in countries like Australia, the US, UK and New Zealand. Originally starting in 2003, Skype was purchased by eBay in 2005 and plans were made to spin it off as its own publicly traded company that year. The homework involves signing up for a Skype account and trying to make a call to the contact "helpfulpaul" if available.