Free Long Distance

Free Internet calling services

Keep in mind that you can also make free Internet calls with software applications that you can download for free. The catch is that you can only call people who also have the same installed application. One popular service is Skype (http://www.skype.com), which gets great reviews. You can place calls over your Internet connection at no charge to anyone else who has installed the software. Skype also has add-on plans that let you call regular phones through your computer for about 2 cents per minute in the U.S., Canada, most of Europe and Australia.

We have a separate report on VoIP, which includes software such as Skype that lets you make long-distance phone calls using your computer and Internet server.

Ooma isn't quite a VoIP plan, but it isn't a traditional service either. Rather, it's a bit of both. You buy the hardware for about $225 up front, then after that you get free phone calls (local and long distance) that are routed partly over the Internet and partly over a land-line connection. Ooma debuted in 2007, and so far, users are happy with the device. You don't need to have a computer to use it, but you do need a high-speed Internet connection, so while Ooma can work over the Internet or through an active land line, you do need to have an Internet connection. But if you have both, and you like the idea of paying up front for the service, Ooma can let you skip monthly bills for as long as you own the product. Of course, as with all services that promise many years of service in exchange for up-front cost, there's always a risk that you'll be left in the cold if the company goes under, but so far, Ooma has been stable.