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When people talk about free phone calls, what they are referring to is voice over internet protocol, or VOIP in telecom parlance. With VOIP, users make calls through broadband data lines (DSL, cable, or fiber) rather than traditional copper phone lines. In layman's terms, it's essentially a new way to make phone calls over the internet.

However, it must be stated up front that even through the internet, phone calls aren't completely "free." While you won't get a phone bill or see individual charges on your account, you still must pay a monthly or annual fee to get service. The free aspect of your phone service is the fact that calls are generally unlimited and include long-distance. The service is, however, decidedly cheaper than traditional phone service.

Case in point, I recently happened to see a television commercial advertising a new product called, "MagicJack." The advertisement explained how the small unit which plugs into your computer's USB port on one end and your home telephone on the other end saves you hundreds in phone charges per month.

The technology is called voice over internet protocol, or VOIP in tech lingo. And with the advent of broadband, it has become more popular as a cheaper alternative to traditional telephone service.

But here's what you need to know about VOIP. The new technology has two significant limitations: 1) temporary loss of service with a power outage; and 2) choppy sound when your computer is performing a memory-intensive task such as uploading a video to YouTube.

Skype & Vonage
Two popular providers for internet telephony are Skype and Vonage. With Skype, both users must be Skype callers. One cannot go outside Skype to utilize the free phone call capability of the internet. Vonage is more similar to traditional phone service, yet is cheaper at $14.99 per month for their Basic 500 Minute Residential Plan which includes every feature you could want, plus free long-distance. And if you want unlimited minutes plus free international calling, choose Vonage's Premium Unlimited Residential Plan at $24.99 per month.

The Money-Saving MagicJack
MagicJack has emerged as a major contender in the battle for the top VOIP telephone service provider. With an initial cost of only $39.95, MagicJack will provide you with unlimited local and long distance calling plus many other features for only $19.95 per year (you heard right, per year). So intriguing was the advertising that I had to check it out for myself.

The MagicJack promptly arrived

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