As technology evolves, it's supposed to get cheaper, right? At $40 for home phone service in the New York City area, plain ol' Alexander Graham Bell-era copper is hardly the cheapest route to making calls anymore. Instead of wasting money on home phone service, we've got a list of seven different services that can replace your landline.

Software solutions

Inexpensive and unlimited calls are the hallmark of software services. Since the computer-based services don't actually know the physical location of the caller, they shouldn't be seen as landline replacements because they can't handle 911 services. We think of software solutions as a great way to augment cell phone service, but cell phones are still the best method for calling 911 since they're accurate within 300 meters.

Skype

One of the progenitors of computer-based telephony is Skype. The eBay-owned company allows users to plug in a headset to their computers and send and receive calls over the phone network for a fee. SkypeOut accounts, where users can make calls, cost as little as $2.95 per month for calling anywhere in the US and Canada. SkypeIn numbers, which allow others to call a users computer as if it were a phone, cost $60 per year, or $30 per year when coupled with a SkypeOut account.

Most users typically use Skype's software versions, however there are many inexpensive handsets that connect to either WiFi or Ethernet networks and allow users to have a more traditional phone experience while using Skype.

Gizmo5

While there are no shortage of software solutions around, one we've used and had a good experience with is Gizmo5. Formerly called the "Gizmo Project," Gizmo5 is a standards compliant VoIP client. Unlike Skype, which uses its own proprietary peer-to-peer network to route calls, Gizmo5 instead is a standard point-to-point VoIP provider and can send and receive calls from "SIP" phones. Geek speak aside, the main benefit of standards based VoIP providers is the ability to use standards based hardware compatible with the service. Gizmo5 supports most of the features that VoIP phones in offices support, and is compatible with office phone systems (PBXs).

Home users will find Gizmo5 comparable to Skype, except Gizmo5 only offers per minute plans. Gizmo charges 1.9 cents per minute calling anywhere in the USA, which might be ideal for anyone who needs to occasionally make a long call and doesn't want to burn through cell minutes.

Hardware solutions

Skype or Gizmo5 just not meeting your needs? Rather than plunk down more cash for a landline, check out these hardware solutions allowing regular home phones the ability to plug in directly and operate in a similar manner to traditional phone service.

MagicJack

One of the companies that has been getting some hype in the mainstream press is MagicJack. This $40 device connects to a home phone through a traditional phone port built in to the device, and uses USB to connect to a computer. The MagicJack creates a standard dial tone, and uses a computer's internet connection to route phone calls. The MagicJack can be considered a proper landline replacement since it has 911 support, though like most other VoIP services, in a power outage or computer failure the phone ceases to work, making it less reliable than a standard landline phone.

The MagicJack's biggest selling point is its easy setup. The USB unit includes the software right on the device, so a user doesn't need to fuss around with additional drivers or CDs to make the device work. One year of service is included with the initial purchase, with yearly subscriptions costing $20 thereafter. Users can also add international calling for $5 per year.

Ooma

Ooma is another MagicJack style service, though a computer is not required to make or receive calls. Instead, a user purchases the $250 Ooma box, connects it to a home phone, and can then make and receive calls without paying another fee, ever. The box may seem pricey, but the company tries to sell it as a premium VoIP service with extended call quality, voicemail support and a free phone number.

Friend of Obsessable, Dave Zatz, currently has an Ooma box and tells us the call quality is extremely good and that he thought the purchase was worthwhile. We're still skeptical of spending $250 on a box, but users who work at home and have long conference calls might appreciate the device.

T-Mobile HotSpot@home

One of our favorite hardware solutions is T-Mobile's HotSpot@Home service. T-Mobile users with a UMA compatible phone that has integrated WiFi can pay an extra $10 per month and make unlimited calls using their home's internet connection. HotSpot@Home users don't need to have any additional hardware other than a WiFi network connected to the internet and a compatible handset. The service works by automatically connecting to a compatible hotspot when in range. The service then routes all calls sent or received over the WiFi connection instead of the cellular connection. If a user leaves the range of the WiFi access point, the phone will automatically switch the call back to the cell phone network without dropping the call.

The service has many highlights, but for us the main highlight is the safety of 911 with the UMA compatible handset of our choosing. Most phones don't have WiFi, and some WiFi handsets aren't compatible with UMA, however there are a good selection of devices like the BlackBerry Curve, for instance. HotSpot@Home is perfect for the T-Mobile user looking to save some coin on a home phone service, but still make and receive unlimited calls at home. We've heard rumblings over the past year and a half that AT&T would unveil a UMA service, though it's still yet to be announced.

Service providers

The last category of our breakdown includes providers aiming to usurp the phone company's territory and replace the entire wiring of home phone connections in the home with VoIP access. These services are the most useful for people who've wired their homes for phone access already, and still like the idea of having handsets all over the home.

Cable company

You might have heard about Cable's triple play, where the cable company sells a home user cable TV, internet access and home phone service. Typically these services rely on VoIP, and are subject to some of the same upsides and downsides as any of the other options we've listed. The biggest upside to a cable-based phone is the pricing. Typically Cable companies will cut triple play customers in on a deal to pay less for all three services. We wouldn't recommend using a cable provider otherwise (especially if you plan to ditch your cable box!), as there are more economical and feature laden benefits with some of the other options above.

Vonage

One of the first companies to jump on the VoIP bandwagon was Vonage. This grand daddy of phone replacements has seen its ups and downs, but is still drawing new customers. Vonage charges $15 per month for home phone service, which is still much less than the regular phone company. However, being the first player in a relatively new space means Vonage has had some major problems. Originally, the service didn't fully support 911, but the company says they've rectified the situation. We're likely more inclined to bundle our phone service with our cable, or give one of the other providers on our list a shot, before going with Vonage.

Do you use one of these services to replace your home phone service? Have you had a good or a bad experience? Tell everyone about it. Leave a comment below with your experience using VoIP instead of regular landline phone service, or sound off with any questions you may have about making the leap to internet telephony.