Released: September 19, 2007

Start-ups promise lower-cost phone calls

Source: James S. Granelli, Los Angeles Times (Free Registration)

Nationwide calling from your regular home phone is getting closer to being free.

Two new companies are trying to attract the average consumer to Internet telephony by bypassing the local phone and cable TV giants to provide free calls on standard-issue phone handsets.

The free calls come at a price, of course - either one-time hardware costs or low annual membership fees.

Still, analysts say the surge of inexpensive alternatives for making calls is likely to drive down prices for traditional phone plans.

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