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The latest version of file-sharing software Kazaa will let users make free phone calls anywhere in the world.

Kazaa is including Skype's Voice over Internet Protocol software in version 3.0 of its software. According to Kazaa, 300m people have downloaded its software: it says it is the first peer-to-peer company to offer VoIP calls. Skype uses internet networks to route calls far more cheaply than traditional telcos.

Nikki Hemming, CEO of Sharman Networks (the firm behind Kazaa), said: "The inclusion of Skype is a natural extension of the Kazaa product and of peer-to-peer. As pioneers in the P2P field, Sharman Networks believes the integration of Skype - considered the best product in the market for Internet phone calls - will deliver powerful consumer benefits."

The new version also improves searching by allowing users to find 3,000 results per search.

The latest version of file-sharing software Kazaa will let users make free phone calls anywhere in the world.

Kazaa is including Skype's Voice over Internet Protocol software in version 3.0 of its software. According to Kazaa, 300m people have downloaded its software: it says it is the first peer-to-peer company to offer VoIP calls. Skype uses internet networks to route calls far more cheaply than traditional telcos.

Nikki Hemming, CEO of Sharman Networks (the firm behind Kazaa), said: "The inclusion of Skype is a natural extension of the Kazaa product and of peer-to-peer. As pioneers in the P2P field, Sharman Networks believes the integration of Skype - considered the best product in the market for Internet phone calls - will deliver powerful consumer benefits."

The new version also improves searching by allowing users to find 3,000 results per search.