The Apple Store, among many other things, has really opened the door to free and cheaper International Calling from a smartphone. For instance, there is Fring, and there is Skype. We have also reported about similar applications earlier.

[Note: For a comparison between Fring and Skype services, check the  New York Times article.

Why do they reduce the rate? That’s because these applications depend on the Internet, rather than the carrier. The principle is simple, you connect a call over the Wi-Fi. Most of these services make use of the users IDs or names. So when a call is made within the users of the same service, the call is sent to the service’s Internet server.

The upside:
1. It’s cheap. And the Internet nullifies the geographical distance issues. Hence, making call from Ohio to New York, and making a call from Sydney to San Francisco might be of the same charge.
2. Cheaper landline rates.

The downside:

1. For this technology what the user receives on his/her iPhone is that ID number and not the friend’ actual number, which can be a little confusing at times.
2. And as you have guessed already, the call quality is often blurred, interrupted and sometimes downright conked off.
3. The wi-Fi dependency. These services work great, only when you are in Wi-Fi hotspots.

Final verdict: Great if you are in a long distance relationship or (a long distance business call). Calling Europe, without burning a hole in your pocket is certainly a mouthwatering prospect. Apart from that, it’s much handier than carrying a laptop and using VoIP.
However, it has got a long way to go, till we get international clairvoyance with the iPhone.