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You are being a bit slow I fear.

Since voipcheap and voipbuster uk landline calls are free and since everyone still has a landline there is no need for a PC to PC call facility for voipcheap and voipbuster.

If and when Ofcom allows us to have broadband in our homes whilst we no longer also have to pay BT for a PSTN phone line as well then there will be much more public interest in the computer to computer Skype type facility.

Can someone please explain to us lesser mortals what this is all about  in simple lay terms. Is this Voip, whatever it is, a cheaper option than 18866 or 1899?

VOIP = Voice Over Internet Protocol

In simple terms it means using the internet instead of the standard phone system cables for connecting the most expensive bit of the call - normally the international part.  (In fact most PSTN calls have been connected like this by the phone companies for years and we have therefore been ripped off for years as this bit should be free if you are connected to the internet)

It means a bit of fiddling about as its not perfect technology yet.  But for anyone prepared to invest a little time to understand it and make it work for them, there are some definite potential savings.

VoipCheap (www.voipcheap.com) for example gives unlimited free calls to the UK, Ireland and Netherlands and Voipbuster (www.voipbuster.com) currently offer free calls to around 20 destinations worldwide.   If you use their web application then you need to run a PC and buy a headset or USB connected phone.  There are ways of avoiding this inconvenience by they all cost more money and could outweigh your savings if you usage is small.

Its not for everyone but it is getting better known and it does present some interesting options (incoming numbers in other countries for example). 

There are some good starter resources here ...
http://www.voip-info.org/tiki-index.php

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If only what you say was true Shiggaddi.

I would love to stop paying BT an unnecessary £126 a year but on my exchange in order to have broadband I must also rent a PSTN phone service from either BT or from a phone operator that BT is selling a wholesale PSTN service to (eg Onetel).

Only people who live on unbundled exchanges can have broadband but not rent a phone line.  Or of course anyone sharing a Wifi transmitter with two or three neigbours (so perhaps one phone line and broadband service between the lot of them).  Those of us living in the countryside look as though we will be stuck with paying BT Phone line rental that we don't need for some years to come.

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BT don't do the unbundling.  Their competitors do by installing their own equipment in the exchange concerned.

But it is only cost effective to unbundle in big exchanges with 20,000 customers or even more on the exchange.

So no hope of this out in the sticks.

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You should be able to do what you want with other Skype users.  But you can't call people who only have an old fashioned BT landline for free with Skype.

A case of horses for courses it appears.

Thanks Gray for your clear response. Can you use the VOIP to phone from a computer to a landline phone. What about NGNs. How does it differ from MSN messenger? Do you need windows XP I only have windows 98SE and broadband basic.

By the way I have the stay logged in box ticked but for some reason have to log in after each reboot!