Skype has always enabled free calls over the web between two people who are both using the service, but it still costs to make a call to a landline or mobile using Skype.

However, Skype's new packages will dramatically reduce the cost of calling landlines in many different countries, according to the company.

You can now pay a monthly flat rate of £2.95 to make calls to landline numbers in 20 European countries. If you just want to call numbers in the UK it costs £1.95 per month and you are not tied in to a minimum contract length.

Stefan Oberg of Skype said: "Now we're making it even easier for the Skype community to call their friends and family who are not yet on Skype. Our subscriptions give people an easy, hassle-free choice for how and when they want to catch up with their loved ones."

"When you combine the free features Skype is known for – from instant messaging to conference calling to video calls – with our subscriptions, it's hard to find a better alternative," he continued.

Skype is owned by eBay but recent rumblings from the online auction house suggest that it could be sold off soon.

www.skype.com/go/subscriptions

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