Skype might not be performing quite as well as parent company eBay would prefer a $2.6 billion acquisition to perform, but that hasn't dampened worldwide enthusiasm for the VoIP service. Skype is so popular, in fact, that new numbers out from TeleGeography suggest that it has become the "largest provider of cross-border voice communications in the world." Take that, AT&T!

Actually, AT&T probably doesn't care, since long distance has lost some of its revenue-generating luster, but the surging popularity of VoIP no doubt keeps future-thinking execs up at nights. Skype's revenues are more modest than the big telcos, despite its usage numbers; at eBay's annual meeting earlier this month, the company said that Skype pulled in $550 million in 2008.

Most of Skype's usage, though, generates no revenue. Its free computer-to-computer calls (certain handsets and mobile devices can now be used as well) have become a hugely popular way of making international calls. TeleGeography estimates that Skype's international traffic jumped by 41 percent in 2008 and topped 33 billion minutes of use, most of that in free calls. Traditional international calls grew only 12 percent in 2008.

[Ars Technica]