How to Use the Internet to Save Money on Phone Calls: Skype Explained
Have you heard of people using the Internet to save money on long distance phone bills? Have you heard of Skype but don’t really know how it works? Well, read on.
What to do
Anyone in the world can use Skype.
- First, get yourself one of the following:
- A headset, which has a microphone and headphones, like the Logitech 980158-0403 Internet Chat Headset (cheaper)
- A Skype compatible phone, like those available at the Skype Store USA (more expensive)
Set-up your audio equipment according to the instructions provided with your equipment.
- Click here to download Skype for free.
- Install the program.
- Choose a Skype Name and Password.
Connect your headset or phone to your computer.
Connect to the Internet.
Launch Skype and log in.
On the Skype Web site, there are comprehensive FAQ and Getting Started sections under the Help section. Read these to familiarize yourself with the program.
A little more
What you need
Before you can use Skype, you need speakers and a microphone. The microphone enables you to talk over the Internet, while the speakers allow you to hear whoever is talking to you.
The most common combination is a headset, like the Logitech 980158-0403 Internet Chat Headset. You plug the headset into the audio and microphone jacks on your computer. A non-USB headset has two plugs, so make sure that each plug is in the right jack. A USB headset plugs into a USB port on your computer.
You can also get something called a Skype compatible phone, like those available at the Skype Store USA. It is a phone handset that plugs into your computer and works with Skype. These phones tend to be a little more expensive than the headsets, but if you prefer talking into a handset to wearing a headset, we recommend purchasing a Skype compatible phone.
Once you have the device set-up and plugged in, you are ready to start using Skype. Make sure your audio and microphone settings are not on mute.
About Skype
Skype is a free program that allows you to make phone calls using VOIP, or Voice over Internet Protocol. In essence, Skype lets you transmit voice and audio over the Internet.
You can download Skype for free from the Skype Web site. After you install Skype and launch it, you will need a Skype Name and Password to use the service. Think of your Skype Name like an IM screename – it is the name other people will type into Skype when they want to contact you.
Skype-to-Skype calls are FREE
Skype to Skype means that both you and the person you call are using Skype. To call someone, you enter their Skype Name in your Skype window, and click the green telephone button. You hear a ringing sound when someone is trying to reach you over Skype, but you have to be logged in to Skype to hear this. Click the green telephone button to answer the call. Click the red telephone button to hang up.
Skype to Skype calls are free anywhere in the world. As long as you and the person you are calling are both using Skype, you can talk whenever, wherever, for as long as you want, for free.
So if you spend a lot of money on international calls, you could ask the people you call to download and install Skype. If you call them Skype to Skype, you could save yourself a lot of money on phone bills.
Skype calls to landlines and cell phones are NOT FREE
To make a call to normal phones, whether a landline or cell phone, in another country, you need SkypeOut, which is credit you purchase for your Skype account.
Think of SkypeOut as a calling card. You must purchase a certain amount of SkypeOut credit, and then you can make calls to real phones using this credit until it runs out. You can replenish your SkypeOut account at any time.
There are two important points to consider when thinking about SkypeOut rates.
- SkypeOut is not priced from where you are calling from, but where you are calling to. So a person in India who is calling a US landline and a person in Argentina who is calling a US landline are charged the same rates, because they are both calling a US landline.
- Second, as a general rule, it is always cheaper to call a landline than a cell phone in any country.
Your can check SkypeOut rates here.
Currently, the best deal for SkypeOut is for people calling the US from abroad. Since SkypeOut is charged according to where you call, instead of where you call from, SkypeOut can mean huge cost savings to people calling the United States from other countries.
When you use SkypeOut, it costs .021 US cents a minute to call any landline or cell phone in the continental US. So if you live outside the US but call the US often, we recommend buying SkypeOut credit.
Exception for US and Canadian residents only: If you are a US or Canadian Resident, it might interest you to know that Skype recently made all phone calls to US and Canadian landlines and cell phones free until the end of 2006 (if you live in the US or Canada).
What is SkypeIn?
If you live outside the US, you may find it useful to get something called SkypeIn.
SkypeIn is a service that allows you to assign a phone number to your Skype account. That means people can call your Skype account by dialing normally from a regular phone. For example, with SkypeIn, you could assign a US phone number to your Skype account.
Let us say you live in India, you have a broadband Internet connection and you have family in the United States who you call frequently. If you purchase SkypeIn, you can pick a US phone number, of any area code, to assign to your Skype account.
For US residents, most local calls are free. So if you buy a SkypeIn phone number for your account, and assign an area code to the number that is the same area code of where your family lives, that means your family in the US can call you from a normal phone for free, because the call to your SkypeIn number will be considered a local call for them.
To hear Skype ringing, your computer must be on with your Internet connection and Skype running. But SkypeIn also comes with free voicemail, so people calling you can always leave a message if you are not available.
SkypeIn costs a flat rate of 30 euros (about 37.6 dollars) for 12 months, or 10 euro (about 12.52 dollars) for 3 months.
Currently, SkypeIn numbers are available only for select countries. Check the Skype Web site for more details.
Other Skype features
There are other Skype features that are worth mentioning.
- You can use Skype like an Instant Messenger by clicking the chat button in the Skype window. Chat over Skype is free.
- You can run conference calls through Skype by clicking on the conference button. That means you can call multiple people and connect them on the same phone call. When you run Skype, you have the potential to connect yourself to both Skype Users and people with real telephones. However, if you want to call people on landlines or cell phones, remember you will be charged the appropriate SkypeOut rate for each person you connect to via a landline or cell phone on the conference call.
- Calling 1-800 numbers in the US over Skype is free.
Please Note
You cannot use Skype to call any emergency services, like 911 in the United States.
Advantages of Skype
- Low cost – Skype to Skype calls are free, while SkypeOut rates are competitive with international calling cards.
- Ease of use
- Conference Calling – You can run a conference call through your computer, without buying extra equipment.
- Great quality – Skype to Skype calls have great quality.
- Phone number – SkypeIn gives you the ability to assign a real phone number to your Skype account.
Disadvantages of Skype
- SkypeOut quality slightly worse than regular phones – For the most part, using SkypeOut to call a real phone will be of a lesser quality than using your normal phone. Not by much, but you are likely to notice the difference.
- Connection to computer – Whether you use a headset or a Skype phone, you are connected to your computer when you make Skype calls. There are cordless Skype phones available, but they are more expensive than the above. If your computer is bluetooth enables, you could pick up a bluetooth headset and use it with your computer to make Skype calls.
You can learn more from the Skype homepage. We hope this article was useful.
Full Disclosure: The referral links in this article are as follows:
The Logitech 980158-0403 Internet Chat Headset is a referral link for Amazon.com. You should know that we receive a referral commission of 4-8.5% for ever referral sale we provide to Amazon.com – the percentage is determined by the type of product you buy, and how much volume we provide for Amazon.com. A ’sale’ occurs when you click through on one of the Amazon referral links above, and make a purchase in the same session at Amazon.com. In other words, if you visit Amazon.com without clicking through any Amazon.com links on Howtobewebsmart.com, we do not make any money. We provide these links in association with Amazon.
Skype Store USA, Skype, download Skype for free, SkypeIn, and SkypeOut are referral links for Skype. You should know that we receive a referral commission of 5-15% for ever referral sale for premium services (like SkypeOut) or products (like Skype compatible phones) we provide to Skype. The percentage is determined by which products you buy, and how much volume we send to Skype. A ’sale’ occurs when you click through on a Skype referral link, and make a purchase in the applicable session at Skype. In other words, if you visit Skype without clicking through any Skype links on Howtobewebsmart.com, we do not make any money. We do not make any money when you download Skype for free. Please know that we develop the best strategies we can first. Only later do we try to find any relevant affiliate links. This strategy helps us save our users as much money, time, and effort as we can. Our full disclosure policy hopefully shows that our process is honest, and we believe you should consider it when you determine the usefulness of this article.
We use the money generated from this article to keep Howtobewebsmart.com free for you; to limit the number of ads we put on the site; and to support ourselves in finding ways to use the web to save you time, money, and effort. We appreciate your support!
You can learn more about why we maintain a full disclosure policy by reading How We Make Money.
