Skype is a Voice Over Internet system that is FREE when calling fellow members, anywhere in the world. Membership is free also.
We set it up with one of our daughters a couple weeks ago, and it seems to work just fine.
No more cell minutes, and no more long distance when we talk to her.
Both parties have to be on the net at the same time is the only drawback we see.
You can use it to call non-members, but there is a nominal charge. We don’t intend to use that feature, so I don’t know how you would be billed.
Check it out at [url=http://www.skype.com:b04d2]http://www.skype.com[/url:b04d2]
I’m just a new and so far satisfied user, not affiliated with Skype in any way, and make no claim to its suitability to your particular needs.
Jim
nowindknots, I have found that type of phoning has too many limitations. Have you heard of VOIP? While it’s not free, for $25 a month it has unlimited calling in US and Canada. Best part is it uses a regular telephone and you can call anyone that has a telephone, any time, no computers involved. They can also call you anytime, you will have a telephone number with the service. You can have your choice of any area code for your number. You can even add extra numbers in other area codes, i.e. one in a relatives area code so they can make a local call to you. It includes all features of telephone service that the regular phone company charges extra for. All you need is high speed Internet access. It uses a device that plugs into your router. This device has telephone outlets. You simply plug your phone in and use it the way you use any phone. You can also connect it to your house wiring to replace your other telephone service. You can plug this device into any high speed Internet service in the world and answer you phone and make calls as if you were home. I use it and will never go back to the other type of phone service.
Joe
Yes Joe, it does have some limitations. 
I’ll definitely check out VOIP. I don’t see Skype as a primary phone tool.
Did I mention it was FREE? A major consideration for some, especially those with teenagers, and college age children.
Young friends can set up their own little calling network and not tie up the primary phone, possibly eliminate a second land line, and reduce “at home” cell usage.
Jim