Jumping rope is a plyometric style workout. Thus it is excellent for developing power, speed and endurance in your calves. It is particularly suited for developing jumping height and footwork speed. Famous advocates of jump rope include Muhammad Ali, Bruce Lee and countless martial artists, boxers and NBA stars.
According to one source 10 minutes of jumping rope is equal to 30 minutes of running at a 5.7 mph pace. Also most sources quote it as being an efficient calorie burner about 12 calories per minute for a 150-lb person who jumps 120 times in a minute. But more importantly skipping is a workout that involves the whole body. It tones the muscles of the upper body (especially the deltoids and to a lesser degree the chest and upper back) as well as the lower body (especially the calves and the hamstrings). Jump rope promotes definition of the abdominal muscles and it reduces cellulite. For athletes it is excellent, as aside from the cardiovascular training benefits it also significantly increases jumping and running potential.
Skipping is an exercise that can literally be done anywhere, anytime and requires very little equipment or space. You don't need to perform an extensive warm-up and you can do it at any time of the day or night. Jumping rope is an excellent cardiovascular (heart/lung) workout. It's comparable to jogging in its benefits, but there is much less impact and so is easier on the joints than running.
Aside from its countless health and subsequent psychological benefits, a skipping rope is probably the cheapest (and most effective) piece of training equipment you'll ever purchase. Depending on the quality and type of rope you end up purchasing prices will range from $3 to $15. For beginners, or those looking to work on speed and footwork I recommend purchasing a basic speed rope, which will look identical to those you used as a kid in primary school. For those looking for more of a muscular challenge, purchasing a weighted skipping rope is your safest best. You know the rope is the right length if you stand on the rope with one foot and it reaches your armpits.
If you're new to rope jumping, start slowly - even if you're quite fit. Jump for a minute or two, then rest and stretch your calves. When skipping make sure you wear a good pair of running shoes to help absorb some of the impact.
A basic skipping workout will involve increasingly longer intervals of skipping followed by shorter intervals of rest (ex: 1 min skip - 30 sec rest / 1.5 min skip - 45 sec rest / 2 min skip - 60 sec rest etc.). Eventually the goal is to be able to skip uninterrupted for 30-45 minutes. As with any cardiovascular exercise ensure you complete a proper warmup and perform static stretching as a cool down.
Skipping is also fantastic (if not the best) fat burning exercise. For optimum results try performing your jump-rope workout first thing in the morning before you eat breakfast. This will have two benefits - firstly your glycogen stores have been used throughout the night while you were asleep and so will be quickly used up when you start jumping rope. This means your body turns to alternate sources of energy i.e. stored fat. Secondly, not only will you feel invigorated and get a nice endorphin rush that will drive you through the morning your metabolic rate gets a kick start and (depending on the source you consult) will stay elevated for 2-6 hours.