I use skype to call friends on skype for free, and my family for much less than if i called them on a normal phone or cell phone.
I have a laptop with a camera, and speakers and can hear them all alright. And they can hear me. And the friends can see me.
It's amazing how much cheaper it is if you put credit into your skype account to call your family.
I also read somewhere, that you can have a local number in your home town. that your family can call at local prices.
I am in Europe.