When the economy goes south, everybody appreciates getting a break on essentials.
And that includes phone service.

At the International Consumer Electronics Show in Las Vegas, Scott Durschlag, Skype's chief operating officer, shares with CNET columnist Larry Magid's podcast how consumers benefit from free to cheap calls on Skype.

CNET's Marguerite Reardon reports said down times have resulted in a surge of new Skype users as people look for ways to cut their phone bills.

"We are seeing consumer take-up of Skype accelerating because people feel they can get value and quality without making a huge trade off," Durschlag said. "And we're seeing a whole new opportunity in the business market, as companies that I'd never have thought would be a target for Skype are pro-actively coming to us and asking for a solution."

Magid said in Lary Magid at Large also says he uses Skype a lot while he travels overseas. He said Skype beats out cellular and hotel rates.

(True that. But I find Skype also has helped me cut the bill for domestic calls--both local and long-distance. While doing my taxes yesterday, I saw that Skype had cut more than $1,500 out of my annual business expense for phone service compared with a few years ago. I am saving myself and the publications I work for a bundle.)

Durschlag said even the mobile operators are opening up to Skype.

Another news flash: Durschlag said VOIP (Voice over Internet Protocol) is "dead" as only audio calls. He said on any given day, 30 percent of Skype calls are Video. And on Xmas that was 42 percent and New Year's Day almost 50 percent.

So brush your teeth and comb your hair, you may be on Skype Video.

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