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Check out this new online calling service. It looks like it has cheaper rates than Skype. What do you think?
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Rebtel is better than Localphone (better connection and quality). I use Rebtel to call my girlfriend all the time.
If you're calling from your PC, Google Voice is a cheap, convenient alternative to Skype.
I've been using Amivox over the past months and I must admit that it is a pretty good service. At first I was suspicious of the announced low rates (http://www.amivox.com/rates/), but nevertheless decided to give it a go. The quality is actually great, and there were no surprises with the rates: I pay only for what they show on their rates. I was introduced to Amivox by this article, and I have been using it since: http://www.huffingtonpost.com/iris-lee/cool-icelandic-phone-tech_1_b_1169372.html