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

The next Google or Facebook will come from somewhere other than Silicon Valley.

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.

With our work at Kazaa, we began seeing growing broadband connections and more powerful computers and more streaming multimedia, and we saw that the traditional way of communicating by phone no longer made a lot of sense.

We have just started, and if you compare the number of people using Skype to the number using a telephone network around the world, we're still just starting.

International markets are much bigger than the U.S. In Sweden we have 9 million inhabitants, and if you're successful in Sweden, you're not successful - it's such a small market.

We have 2 million users in the U.S. and about 13 million worldwide in more than 200 countries. We're getting 80,000 new users each day. And more than half a million people are connected via Skype at any given moment.