Long distance via the Internet: $29.95 per year

One of the reasons why broadband should include fast speeds for uploads, as well as downloads, is the increasing use of Voice Over IP (VoIP). Unlike a web browser, which mostly receives data, voice applications send as much data as they receive (even if you're a slow talker). 128 kb/sec is about the lower limit for voice calls but add a web-cam and you'll want as much throughput as you can get. Latency (delay) with satellite systems can also cause problems with audio data.

With a stable broadband connection however, VoIP can be put to use today by the average home user, at a big cost savings over Plain Old Telephone Service (POTS). The key to making this system usable is to make it work with a standard telephone and to be able to make calls to any ordinary land-line phone. No one wants to make all their calls while tethered to their computer by a headset or spend big bucks on specialized WiFi phones. I have put together a system in our home using the Skype service, an analog phone adapter and our existing cordless phones. There are other VoIP services out there besides Skype; it's just the one I have experience with. Here's a diagram (courtesy of Von-Phone) of how the pieces fit together:

What you'll need for this system:

• A Skype account, with "SkypeOut" service
  This service currently costs $29.95/year and allows unlimited outgoing calls to any phone in the US or Canada. International calls can be made at an additional per minute and per connection charge (see Skype for details).
• VoIP phone adaptor
  This adaptor is about the size of a deck of cards. It connects to your computer via a USB port and to a phone using a standard RJ-11 jack. I am using a Yealink B2K adaptor that I purchased from Amperor Direct. The same unit is also available from Von-Phone. A search for "Skype Phone Adaptor" on eBay will turn up a number of products with prices ranging from $14 - $35 (watch out for shipping charges).
  
• A phone to talk into
  You could connect a single phone to use only for Skype calls but a better solution is to plug in the base station of a wireless phone system, allowing all phones to have access to Skype. The software that comes with the adaptor allows you to toggle between the POTS dial tone and Skype using the phone's star (*) key.

Special bonus: unlimited calling and two phone lines for $29.95. About six months ago, we decided to disconnect the 2nd phone line to our home. It was originally installed as a data line, back when we had dial-up Internet access and a fax machine (I now actively discourage people sending me faxes). When DSL became available, between consolidating our phone and Internet service and disconnecting the 2nd line, we saved a pot of money. But we missed being able to make voice calls on two separate lines. Skype to the rescue! Because we have a two-line cordless phone system, we were able to connect POTS to line 1 and the Skype adaptor to line 2, effectively creating a new second line. Both lines can be in use simultaneously; they can even be conferenced together.

So, how does it sound? On my system, the call quality is comparable to a cell phone. Somewhat worse than a POTS call but perfectly acceptable. Some Skype users have complained of echos and delays but that hasn't been my experience, probably because I have a stable DSL connection at 3m down and 384k up. I've had no complaints from the people that I call (including my 71 year old mother), however I should point out that at this time Skype does not support caller ID. This could be an issue if you frequently call people who won't pick up if they don't recognize the caller. There have been many requests for this feature but Skype will only say that, "currently tests are being conducted with several PSTN carriers for the possible future introduction of callerID."

Adapting to any new phone system means learning a few new habits. For example, unless you use Skype's built-in speed dial, there are a lot of numbers to punch in on a Skype call. Once you get the hang of it though, in most cases you just pick up the phone and dial. The Skype service offers many options that I haven't touched on here. Read about them and get user feedback on the forums at www.skype.com.