13 December 2006

NEW YORK — Skype, which helped make free PC-to-PC calling a global phenomenon, will announce Wednesday a $29.95-a-year service offering unlimited calls to wireless and traditional landline phones.

Skype's Unlimited Calling subscription moves the company toward the mainstream of phone services and poses a significant challenge on price to many VoIP services — short for Voice over Internet Protocol — that can cost $300 to $400 per year.

Previously, Skype users had to prepay for Skype credits to make such calls.