Skype is on track to pass $1 billion in revenues next year (its revenue run-rate for 2010 is $800 million). In June, Skype was averaging 124 million active users a month, but only 8.1 million o them were paying. Skype has the scale it needs to negotiate lower telecom connection fees around the world, but it needs to ramp up the number of paying customers and convert more free users.

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Authors: Erick Schonfeld

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