Skype have been the pioneer in the field of internet telephony, also known as VOIP (Voice over Internet Protocol).
To be quite clear, PC-to-PC phone calls are absolutely free using this technology and often exceed the quality of landline calls where there is a fast internet connection at each end—any type of connection works in theory but, in practice, you really need broadband.
Obviously, this assumes that each user has an internet service offering unlimited connection time (generally the case with broadband) though heavy internet users may incur modest extra charges when exceeding ISP monthly bandwidth limits.
PC-to-landline (or mobile) calls can also be made at extremely competitive rates—other services supported by Skype include internet messaging (chat), SMS messaging (text to mobiles) and video calling.
Calls can be made using the PC speakers and microphone though a USB headset or USB telephone generally produces better results while leaving the computer speakers to operate independently in response to operating system and other software audio.
The nice thing about a USB phone (about £15 from eBay) is that it works just like a telephone—it rings, you can dial numbers directly with your finger and you answer by picking it up or pressing the ’connect’ button.
There are a number of other VOIP services including those provided by Microsoft (Windows Messenger/MSN Messenger) and various internet service providers but the Skype service has proven consistently reliable and very cheap for international PC-to-landline or PC-to-mobile calls.
Using alternative services in circumstances where rates are cheaper has not given rise to any practical problems.
Skype also seems to work well on the Apple MAC (OS X v10.3.9 or newer).