And the VCR did the same thing: the movie industry thought nobody would ever watch movies any more.

The Chinese market is very, very unique.

You have 1 billion people using the Internet with 200 million of those now using broadband internet connections, so the Internet has become a powerful network. It can carry calls.

Look for when the environment is changing - the big shift now is mobile Internet. It's really happening big-time. The way you interact with services on a smart phone compared to the Web is quite different, so there's a huge opportunity.

Then people started using it more and more and it became the most downloaded software on the internet.

People need to access Skype wirelessly, no matter where they are, and what happens is that we'll be taking advantage of the rollout of Internet everywhere - WiFi and WiMax in particular.

Some Internet operators are concerned that video services such as Netflix and YouTube consume lots of the bandwidth on the network. While there is some truth to this, my guess is that the operators wished they could provide the same kind of services with the same success as Netflix and YouTube.