I'm not using skype but use a voip service instead of my landline. I bought some hardware that I just plug my ordinary phone into and dial away. The only difference is that I have to dial the area code before every phone number, even if its next door. I don't even have to turn the computer on, it just works like an ordinary phone.
My phone bill has gone from about $70 per month to <$30. Call quality is somewhere between landline and mobile quality.
I make untimed national calls to landlines at 9.9c each, mobiles for 27c per minute, and cheap international calls (e.g. 3c per minute to US). I think I may be able to get the mobiles down to 19c per minute by using a different voip service provider for mobile calls (pennytel).
Anyway if anyone else is interested here's what I did:
1. Signed up with a broadband internet account
I chose internode as my ISP.
Plan is ADSL: HOME-512-Starter for AU$39.95 512K/128K, 8GIG traffic shaped
This seemed to be a good ADSL 1 price.
2. Signed with a Voip (sip) Service Provider
I chose
www.sipme.com.au, as they seemed to be well regarded by the geeks on whirlpool and had good rates. Sipme also let you sign up with other providers so you can use 1 for landlines, another for mobiles etc. There are many to choose from, but sipme is working for me. I just put $10 worth of prepaid calls on it, and it lasts for ages.
A point worthy of note is that I have heard that some people have gone with isp's that also provide a voip service however the proviso was that they took over the line. The disadvantage of this is they are now paying the AU$33.95 rather than the home line budget of AU$20 INET is an example of an ISP that is doing this. They would not allow me onto their voip service without taking over my existing line.
My recommendation is to separate your ISP and VSP to avoid this.
PS If you have cable then you don't have to worry about line rental. But $60 cable = $40 ADSL +$20 line rental anyway, and I keep my old phone number and still take incoming calls on it, and also have the landline as a backup. Also most VSPs charge a fee to receive incoming calls off-net (its $8 per month for sipme). So at the moment ADSL and line rental works best for me.
3. Bought the necessary hardware.
I purchased the billion 7404vgp. Its a router, wifi access point, 4 port 10/100 switch, 1 port FX0 2 port FXS - so it does wifi, ethernet and voip all in one box. I just plug my ordinary phone into it. There was a bit of messing around with configuation (I had noisy static on my landline to begin with), but the whirlpool forum geeks sorted me out. AU$225 at msy computer parts.
If you already have a modem/router you can just get an ATA (analogue telephone adapter) and plug it into your router, and save a few bucks. The sipura 3000 seems to be well regarded. I already had an ADSL modem and wireless access point, but I chose to get the all in one box to reduce wires and wall warts.
Both the billion or the sipura support Dial Plans, that is, you can program it to switch VSPs, or use the old landline depending on the number you dial. So for example the box could know use one VSP for local, another for mobiles, and ordinary landline to call new zealand. After its programmed you just dial the number like normal and the box knows which service to use.
4. Call telstra and reduce my line rental from $29 to $20 with the home line budget. This meant local calls would go from 25 cents to 30 but of course I make no calls a I use the sip provider.
I have plugged my ordinary cordless phone into port 1 (FXS port) of my billion and I am off and running.
5. Dump all of your tel$tra shares.
6. Call your mum.
