Another differentiator is that Skype is free and simple to set up, and it costs us virtually nothing for a new user to join the Skype network, which is why we can offer the service for free.

It is very similar to companies like Google and other internet companies. When you go and search on Google you don't pay for that. But sometimes you click on an advert and Google makes money on that.

If you could utilize the resources of the end users' computers, you could do things much more efficiently.

Skype is for any individual who has a broadband Internet connection.

It's extremely hard to build a company with a product that everyone loves, is free and has no business model, and then to innovate a business model. I did that with Kazaa, had half a billion downloads but that wasn't a sustainable business.

The telephone is a 100-year-old technology. It's time for a change. Charging for phone calls is something you did last century.

I try not to dwell on big mistakes but to move on when I make a mistake. I make mistakes most of the times and that's part of the risk profile being an entrepreneur. I guess one big mistake I did was not to start my own company earlier. I spent nine years working for others before starting Kazaa in 2000.