Calling long-distance cheaply

This item appears on page 83 of the September 2008 issue.

There are many companies offering VoIP (voice over Internet protocol), which allows free or discounted international calls that travel mostly through the Internet, saving on long-distance charges.

The major provider is Skype (www.skype.com), with over 300 million users. Skype allows one to make computer-to-computer calls through the Internet for free no matter one’s location in the world. (For a computer without a built-in microphone and speaker, a headset is required.)

It also offers international calls initiated from a computer (or Skype WiFi phone) for very low rates. (There is a connection fee of 3.9¢, then a per-minute charge of, as examples, 2.4¢ to Switzerland, 9¢ to India, 20.5¢ to Namibia, 2.1¢ to Chile or 21¢ when calling the U.S.) In countries with less infrastructure, calls made to cell phones will have a slightly higher rate.

For people without computers, there are stand-alone Skype phones that use WiFi (available at coffee shops and hotels) instead of traditional cell towers to initiate these discounted calls. Netgear sells a WiFi phone for $149.99 (visit www.skype.com) that can be used with both protected and unprotected WiFi networks. Skype phones, however, cannot access WiFi that requires one to sign in using a Web browser, which is common for hotel Internet access.

There are two ways to pay for calls to land lines and mobile phones: buying Skype credit in increments of $10 or paying for a subscription. Unlimited international calls to land lines cost $9.95 per month.

One must sign up for Skype service and purchase call time using a desktop computer, but a Skype phone alone can be used to check your Skype credit balance.