Yes. Skype wants everyone to experience the best Skype has to offer – from enhanced quality to better reliability to improved security – and the newest version of Skype is the way to do that. So everyone can benefit from the latest improvements, we sometimes retire older versions of Skype across all platforms, including mobile devices. For that reason, we are permanently retiring all Skype apps for Windows Phone 7.

As a result, within the next few weeks, you’ll no longer be able to sign in and use Skype on any Windows Phone 7 device. You will still be able to use Skype on a variety of mobile platforms, including Windows Phone 8 or 8.1, but unfortunately, Skype will no longer be available in any form on Windows Phone 7.

If you have a subscription that you will no longer be able to use (that is, you don't use Skype on your computer or another mobile platform), you will want to cancel it to avoid being billed in the future. Please see https://support.skype.com/faq/FA1881

To see if you are entitled to a Skype Credit or subscription refund, please see https://support.skype.com/faq/FA297