Skype is a program that you download onto your computer and allows you to make free voice and video calls to other people on Skype. You can have private one-to-one calls or conference calls to groups of people. Skype also allows you to share files, share your computer screen and send instant messages.
Here is a video that will show you how to download Skype and set up an account.
http://www.youtube.com/watch?v=8jsW8MySSwU
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