Beside using PC to PC communication via Skype, I also use Skype to call people on their mobiles or landlines who don't have a PC (i.e my 85 year-old mother). Most calls cost 2c/minute. (For some countries and Mobiles in UK for example, the per minute charge is higher.) But the rate is governed by the destination and NOT by your location. So if I call my neighbor in Canada, the rate is 2c/minute, even if I call him while I'm on holiday in Mexico or Jamaica, etc.
I have an account with Skype and I make a payment for $10 at a time. When the balance drops below $3, Skype automatically hits my credit card for another $10 (and immediately notifies me). That way, I never get cut off in the middle of a conversation.
The quality is always excellent, except if the WiFi signal is weak or high speed internet is lacking...