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Magic Jack
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http://www.magicjack.com/

With this service a magic jack unit is required and the first year of phone service is included ($40). After the first year, the standard rates kick in.

Included in the service for both 1st & 2nd years:
   
    - Phone Number
    - Long Distance
    - Call Waiting
    - Voicemail
    - Caller ID
    - Conference Calling **
    - 30-day guarantee if you order from their web site
    - 911 Calling ***

    1st Year  = $3.33/mo *
    2nd Year = $1.66/mo *

*No limits as to how many calls (as far as I know)
** Magic jack users not required
*** You must register your current service address. Is subject to the limitations of the 911 emergency response system where your registered address is located. Enhanced 911 for VOIP: Thereare important differences between magicJack's E911 service and E911access capabilities of traditional telephone service. It is importantthat you understand how these differences affect your ability to accessE911 services. For example, in certain circumstances, you may not beable to contact emergency services by dialing 9-1-1 using the"magicJack" device.

More info: http://www.magicjack.com/4/faq/, http://en.wikipedia.org/wiki/Enhanced_911

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SKYPE
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http://www.skype.com/

With this service only a computer is necessary and their free software. You can begin making skype to skype user calls for free and use the 1-800-FREE-411 number to make 5 minute calls anywhere in the US. Use your computer microphone and speakers/headsets to make free calls.

To use Skype as your regular phone and make it comparable to Magic Jack, you would need the following:

    Either this:
    - Skype Adapter such as the Yealink B2K Adaptor Telbox USB. This unit allows you to plug wired or cordless phones into it and use like a standard landline phone. Cost $25+.

    Or this:
    - Skype USB phone. This phone plugs into your computer but forces you to make and receive calls tied to the computer. Cost $30+.

    - $2.95/mo for Skype unlimited call service - US & Canada.
    Included in the service:
        - Voicemail
        - 50% off an online number so non-skype users can call you ($30/year or $2.50/mo)
        - Skype To Go Number: use from any phone to get lower rates in US and abroad (US to US 21 cents/min)

* Limitations with $2.95 service:

    - Fair usage limit of 10,000 minutes (166 hours) per user per month with max of 6 hours per day.
    - No more than 50 different numbers in total can be called per day. Oncethese limits are exceeded, Skype will charge normal rates and aconnection fee for any additional minutes used.

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CONCLUSION
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It seems to me that for users who only need to make phone calls from home, Magic Jack is by far the best deal at $3.33/mo the first year and $1.33 the second year and beyond. It includes the unit you need, and you can plug any landline (wired and cordless) into the jack.

Magic Jack (after first year) = $1.33/mo with phone number and adapter to be computer free.

If you'd like to make phone calls from Skype from anywhere (like a cell phone), then you can buy a Skype WIFI phone. This would be very useful for college students that have free WIFI access throughout their campus.

Skype = $5.45/mo ($2.95/mo for service + $2.50/mo for a phone number.) Plus the cost of an adapter to be computer-free (optional).

I haven't had the priviledge of using either one of these paid services. I did use Skype's free software on my laptop and made free calls using free 411. This process was flawless and the sound was clear. A very good choice, too. It took me 5 minutes to install and setup Skype to make phone calls. Skype did recognize my internal microphone and speakers. They have a test phone number to ensure you can make calls. Very nice - indeed.