The answer to this question really depends on your situation. For our family, we are in Canada, with family in Peru and Netherlands. I don't call Netherlands that much, but we do have frequent calls to and from Peru, so whatever service we would get would need to cater to this situation. But not everyone is in this situation, so let's review the different options that I am aware of (and there are probably more) and my opinion on these services - or when it makes sense.
Note: I have written this generally from a Canadian Perspective, so most links are for Canadian companies
Fixed Land Line
This is your standard telephone line, that has been in your house since it was probably built. It is usually provided by one telephone company, such as Bell Canada, Telefonica, Bell South. It usually has a flat rate for the service, includes a certain number of area codes that are considered local (or lowest rate per minute), and by default anything outside of this area is long distance, and these calls are charged by the minute.Most Fixed Land Line companies have add on packages to help with long distance costs, however they still tend to be pricier than other options. They do tend to have the clearest audio quality. They also tend to be the least fuss telephone option for those who don't want to deal with any additional requirements.
I feel that Fixed Lines are quickly coming to an end. The companies that provide these services are more focused on providing internet service to homes, and less about telephony. They also don't seem to be overly eager to reduce their prices in line with other telephony options.
Telephone Cards
I am bringing these up here, as they are typically used with Fixed Land Lines or the last remaining payphones, although they can be used on any phone connection. They typically are cards that can be purchased at convenience stores, which include a set amount of long distance for a set rate, which is often quite cheap. You access these services by calling a special telephone number, entering a pin, and then entering the number you wish to call.In general, these are good options for those without a long distance plan, that need to call occasionally to another country. They are a bit of a nuisance, however, as you need to dial the access number first, and the quality can be substandard. We used to use Telephone Cards, but they became a nuisance as we were calling a number of times.
Example of Telephone Cards in Ontario
Low Rate Telephone Services
These are similar to the Telephone Cards, but they tend to show up on your telephone bill, or some you can set an account. These are services such as 1010100.com , where you call this number, and then enter the number you wish to call, and your call will be connected at a lower rate. This is less hassle than the Telephone Cards, but the same principle. You do have to remember this number, but you can often program this in front of any long distance numbers you wish to store in your phone list.Cable Providers
The first time I shed the traditional phone carrier, it was to get service through my cable company. These were offering much lower standard monthly rates, a similar setup to my traditional provider, and generally cheaper long distance rates. Their services, delivered by connecting your telephone line to the telephone equipped Cable Modem, was the next best thing to a fixed line. The quality was fantastic, but of course, the pricing wasn't really that different. Since, this was probably one of the earlier IP Phone services, they have recently become more competitive, getting into the same space as companies such as Vonage.IP Telephony Providers
This is another route that you can turn to for phone service. An IP Telephony Provider is one which acts like a telephone company, except they fully run on your home internet connection via an IP Telephone Device that is placed by your router, or in your computer. Examples of these type of companies are Vonage, and magicjack, as well as those providing Internet service as well, such as Teksavvy, Primus, and more. This is the route I took, going with Vonage as my provider. I should add, there is very little setup, but the line quality is not as good as your fixed home line.I took this route for a few reasons: 1) They have a world wide flat rate calling plan for $29.99, which included both the Netherlands and Peru, as well as all of Canada / US / and many others, 2) I could get a virtual number in Peru so that family members in Peru could call us for free as well and 3) They have an app (extensions) that allows me to use my home service anywhere in the country via my cell phone.
Another nice feature services like Vonage is that you technically can take your home phone with you when you travel, as long as you have a network connection to plug it into. If you were to do this, keep in mind that 911 service should NOT be used, and if you are traveling within Canada, etc you should update the 911 number to reflect where you are.
Cell Phone Apps
There are a number of Cell Phone Apps out there that allow you to make cheap calls to others, and in the case of some services, receive calls as well. For me, the service I used the most in this space was Skype. With Skype, you can request a number for little cost, and additionally setup a flat rate calling plan to the location of your choice. As an example, i had Skype with a US/Canada subscription, as well as an incoming number (unfortunately no Canada numbers at the time I had it). If you have a cell phone with a decent data plan, this is a good route to go. You can also get Skype on select home phones as well.Self Run Platforms
This is another alternative, not for the faint of heart. It involves setting up an IP telephony platform server in your home, subscribing to an online provider of direct telephony service, and then connecting your home server (ie, Asterisk) to this provider. It is not an easy thing to setup, and my knowledge in this area is very limited. It generally would be used in a business environment anyway, although some like to deploy this at home.Conclusion
There are a lot of options, but what is best probably depends on what you need from a service. Some prefer fixed lines as that is what they are used too, some prefer companies such as Vonage as they are the best if you have family in different countries, and some choose cable providers as they are cheaper than fixed line providers, and often have a bundle deal when using their services. Regardless, it really comes down to what is important for you, but I hope I have helped give an idea what options are out there.One final plug, if you were considering Vonage, let me know. If I refer you, we both get free service! Win Win!
Where do I find out more?
If you want to read up on options, I highly recommend www.dslreports.com. They tend to have discussions on IP Phone Options, Fixed Line providers, Cable Providers, Phone Services as part of Internet packages, and Cell Phone Companies (Forum List).
