for phone service (which we still want for when the girls are at home + for long distance calls) we use ooma. my sister has used it for years, so we thought it was worth a try. it works through the internet connection, costs about $100 up front, and less than $5 per month after that. there are no long distance fees, and you can keep using the phones and number you have.
we are very happy that we payed around $350 upfront and decreased our monthly phone/internet bill from around $90/month to less than $5/month! i don't really like talking specific numbers, but i thought they were significant enough to share. again, just an option for fewer ends.