I'm not clear on what is free and what you have to pay for. Can I use Skype or some other VoIP to make a free call from my computer to another computer? If so, when I see the fee for monthly service, is that for calling people on their regular phone line?

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Yes. Computer-to-computer calls are free, but computer-to-telephone calls usually cost you. This is where the fees come in. Some charge by the minute, some charge a monthly fee and give you a set number of minutes.