Everybody who has found the miracle of Skype for making low-cost and free calls, both national and international through the Internet, received a major wake-up call this week, as the Skype service went down for 3 entire days.  This is an excellent precautionary tale that Internet calling technology (called VoIP, or Voice Over Internet Protocol) may not be ready for prime time, and there's still something to be said for having that reliable old land line.

TG Daily - Skype outage: An unprecedented wake-up call

Courtesy of David Pogue of the New York Times:

The price of home phone service has dropped 30 percent since 1999. Surely, sayeth the analysts, that trend line will eventually plummet all the way to zero. Surely, thanks to the Internet's ability to carry your voice, landline phone calls will soon be free.

Get Your Free Net Phone Calls Here - New York Times

A new startup called Ooma (which apparently boasts TV's Ashton Kutcher as its "Creative Director"), is bringing a new model to phone service:

Companies such as Vonage had better look to their laurels, as new kid on the block Ooma is looking to steal their thunder with a product that offers VOIP calls - but with a twist. From September, you will be able to get your hands on the Ooma, a hub that combines VOIP with regular landlines. But you have to shell out a lot of dosh first…And that's $400 - or $399, to be exact. This is what happens. You buy your Ooma Hub and connect it. It gives you free internet calls, but also works with your existing landline. If you have to dial 911 it does so on your landline (VOIP apparently can have problems connecting to the emergency number). International calls are automatically routed through the internet - which means they are gratis.

Cheap Calls: $400 Ooma Gives You Free VOIP and Landline Calls for Life - Gizmodo

Vonage is having a tough time lately.  They've been locked in a patent infringement lawsuit with Verizon for years now, and it seems as though Verizon has the upper hand.  In a decision announced last week, Vonage is to pay Verizon huge sums of money and a percentage of all of its future revenue for the right to use their technology.  This is essentially a death sentence for Vonage, a company which is already struggling to keep their head above water- shares of Vonage are trading at an all-time low right now.

A Setback Then a Reprieve for Vonage in Courts - New York Times

If you make a lot of long distance calls, the answer is probably yes.  You may have heard about VOIP (Voice-Over-Internet-Protocol) services such as Vonage, Skype, and others.  They can, in fact, save you a ton of money on long distance calling, and overall they work pretty well.  There are some great advantages, as well as drawbacks.  If you're interested, I suggested David Pogue's article on the subject from the New York Times:
Overseas Calls Made Cheap, if Not Easy - New York Times