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(Continued)     The RFS Newsletter, Sept. 17, 2005. Page 2
Skype has 54 million users in 225 countries and territories, the company said, adding that it is acquiring about 150,000 users a day. In North America, Skype has more users and serves more voice minutes than any other Internet voice communications provider, according to the companies' announcement of the deal today. "Communications is at the heart of e-commerce and community," said Meg Whitman, eBay's president and chief executive. "By combining the two leading ecommerce franchises, eBay and PayPal, with the leader in Internet voice communications, we will create an extraordinarily powerful environment for business on the net."

Cable providers and Bell companies are expanding quickly into the rapidly growing market for Internet-based phone service, as are eBay rivals like Microsoft and Google. Skype allows users who download its software and register for its service to talk to one another free over the Internet through their PC's. About two million Skype customers have signed up for a premium pay service that allows them to use their PC's to make calls to regular phone numbers as well as receive calls from regular phones.

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