I didn't want to take over this thread with VOIP discussion... but I'll add some more info now that I'm on a better keyboard.
Ooma is similar to Vonage, but has a much 'better' (cheaper) pricing structure.
Their hardware works the same (or maybe better if you ask other users that have switched), if you want the ultimate in phone service, place the Ooma box between your router and your cable modem, (so that the Ooma box is the the closest device to the internet) and then all your home PC's etc, after the Ooma box. Of course, this is not required, but if you want landline like phone service, it's the best thing to do.
Their pricing is quite interesting, you can choose their 'free' service and then have unlimited calling in the USA. By 'free' they mean that they will only charge you the local, state and federal fees and surcharges (such as 911 fee). In NH these fees seem to be about $3.75 per month.
If you want their advanced features, you can pay $9.95 per month (plus the other taxes and fees that we can't get away from). Their advanced features include things like custom 'black lists' to block people from calling you, as well as a community black list, which can block known telemarketers, etc. They can also forward your calls to your cell phone if your internet service is ever down, or even have a second or third (or more) phone numbers so the kids can have their own number if you want to keep your kids calls separate from yours. If you pay for the advanced features, they will port your current home phone number for free. There are also additional advanced voice mail features, etc. Check their website for the list of all the advanced features.
I thought that I could live without the advanced features, so for now I'm paying only the $3.75 per month for unlimited USA calling (they also have a addon for calling other countries if you call outside the USA a lot).
This is a far cry from the (approx) $50 a month I was paying for my FairPoint landline service (which was not unlimited USA).
It will take me only about 4 months for this box to pay for itself, even if I never use it.
One think I love, is that I have FairPoint FAST (fiber optic, similar to Verizon's FIOS), and having a home generator, and using a UPS battery on my computers, when the power goes out (even when it was out for almost 2 weeks), I always had internet access, while my neighbors with comcast cable long had lost their cable TV and phone service I had full internet access. So combine this Ooma along with the Internet TV devices (like the WD TV Live, etc.), I'm not left to reading books by candle light if the power is out for extended periods of time.
I did consider Vonage (and some others), and I'm sure they are also very good, but it's hard to beat the pricing models of the Ooma system. Check them out:
www.ooma.com (Unfortunately I don't get any referal fee or kickback, I guess they do everything they can to keep their prices down.
I guess the long and short of these postings are to encourage others to get away from the hardware landline prices. These hardware 'internet phone' (VOIP) boxes work well (I hear good things about Vonage and Ooma), but stay away from the 'bargain' sounding 'magicJack' and other similar units.