Skype Is Closer to Phone Service Through Internet

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The brains behind one of the Internet's largest music-and-video file-swapping services took another step Friday toward potentially revolutionizing the telephone business.

Skype Technologies, an Estonia-based software firm, said it signed a deal for Level 3 Communications to route its planned prepaid Internet telephone service. Level 3, based in Broomfield, Colo., operates one of the largest Internet backbones in the world and boasts a broadband fiber optic network of more than 22,500 miles. Skype also announced carriage agreements with three other networkers: COLT Telecom Group, IBasis Inc. and Teleglobe International Holdings.

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Skype Is Closer to Phone Service Through Internet

Skype said it will use Level 3's Internet Protocol service to support SkypeOut, which will enable an...

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