Essentially, you can call other Skype users for free. From 1 WiFi/computer connection to another for example. However, you have to pay ~$40 PER YEAR to get a phone number that people with regular phones (cell phones, land-lines, etc.) can call. You also have to pay to place calls to regular phones. It works out to be way way cheaper than using a regular phone, and you can make international calls for cheap too.
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Go to http://www.skype.com for rate info.
Essentially, you can call other Skype users for free. From 1 WiFi/computer connection to another for example. However, you have to pay ~$40 PER YEAR to get a phone number that people with regular phones (cell phones, land-lines, etc.) can call. You also have to pay to place calls to regular phones. It works out to be way way cheaper than using a regular phone, and you can make international calls for cheap too.