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October 2007
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Skype
A totally free phone service--but with drawbacks

Skype is an Internet phone service that doesn't even require a phone. All you need is a headset designed for Skype, or your computer's built-in microphone and speakers.


WHAT'S AVAILABLE

The best part about Skype is it's free. Once you download the software you can call any Skype subscriber anywhere in the world and pay absolutely nothing. Connecting with non-Skypers in the U.S. is also a bargain--just $90 a year for unlimited domestic calls. International calls range from free to less than $2 a minute.

Skype is not the same thing as the service your broadband provider offers. The latter, known as Voice over Internet Protocol (VoIP), lets broadband users make and receive calls over standard telephone equipment whether their computers are on or off, and monthly service typically costs $20 and up for unlimited domestic calls. Skype service is known as VoIP Peer to Peer (P2P), which requires you to either make and receive calls through your computer--which of course, requires that it's powered on--or use special equipment.

Equipment options vary. You can select a handset and a base station that plugs into your broadband connection, which typically costs around $150. The Skype Web site (www.skype.com) lists compatible equipment, which typically costs about $150. Another option is the VoSKY Call Center ($50), a device that connects to your PC (it's not Mac compatible) to let you make calls from any standard phone, including a cell phone. You can even purchase a Wi-Fi phone ($100 to $150), which lets you make calls from your own wireless network from any wireless hotspot.


HOW TO CHOOSE

Skype is not the only VoIP-based P2P service, but it is the best bargain. Vonage (www.vonage.com) and Packet8 (www.packet8.net) service run $24.99 for unlimited local and long-distance calling. What you give up with Skype is any form of 911 service or alarm-system compatibility. Vonage and Packet8 offer enhanced 911 (E911) service in most areas. E911 delivers your registered address to your local emergency response center. Packet8 charges $1.99 per month for the service, while with Vonage it's included. VoIP services offered by phone and cable-TV companies work with most alarm systems, and with 911 if you register your address with them. Alarm-system compatibility varies by alarm company. Vonage also offers a Web-based form of alarm-system monitoring for a minimum of $24.95 per month. If you want complete peace of mind, keep a basic landline for emergencies.