Hi Maria and David,

Magic Jack is not free, either. It is rather inexpensive, but I believe it is 
$20 a year.

Maria, the only other option would be one of the many VoIP services, but 
nothing is completely free all the time. I use one called VoIP Stunt, you can 
also use VoIP Buster or Free Call, most of them require you to buy a 10 Euro 
credit, but after that offer you free calls for a period of 120 days (4 months) 
to a rather large list of countries. After the 120 days you would be billed for 
the calls at a rate of approx. 2 Cents a minute. Once you then used or almost 
used your 10 Euro credit, you could buy another 10 Euros and once again receive 
120 days of free calling. If you want to make some phone calls this is by far 
the cheapest option, you get 4 months free, then depending on how many calls 
you make, your 10 Euros will most likely last you for another month or 2, since 
at 2 Cents a minute that gives you about 500 minutes. There are of course 
countries where it is more expensive, the Philippines, for example, cost about 
18 Cents a minuteSo 10 Euros would only last about 50 minutes and as David 
pointed out, calling cell phones in many countries is also more expensive, only 
countries where it would be part of your 120 free days would be the US and 
Canada.

Now, as far as using one of these services, you would have to do it on the 
computer via a small program they provide for free to download or you can also 
use any other SIP Soft Phone like Express Talk, but that is a program you have 
to buy and it is about $35. 
If you want to primarily make calls from your iPhone you have to find an app 
that allows you to make SIP calls and there are many. I use Groundwire which is 
$9.99 and it's the more professional version of another app from the same 
developer called Acrobits which is $4.99. There are also free apps, but I 
haven't tried any, you might want to check on Applevis if there are any reviews 
or search the archives for "SIP Clients" or "SIP App".
Once you have a service subscription and an app, you have to configure the app 
with some relatively simple settings like your user name, password and a couple 
of server settings. Those are all provided by whichever service you sign up 
with. After that you can make calls, it works basically like Skype, I know 
Groundwire and Acrobits are both fully accessible, you have a DialPad to dial 
numbers, you  can add names/numbers to a Favorites list and the app asks you 
the first time you open it if you allow it to access your contacts in which 
case you can clal anybody in your Contacts just like you would from the regular 
Phone app, you would of course have to make sure that you save phone numbers in 
your contacts in the full international dialing format. Below are a couple of 
websites for VoIP services I have used, the last little while I have stuck with 
VoIP Stunt.

Free Call:      http://www.FreeCall.com
VoIP Buster:    http://www.VoipBuster.com
VoIP Stunt:     http://www.VoipStunt.com


Good luck,
Sieghard

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