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The absolute cheapest way to call, is to get Whatsapp on your cell phone and use their free call facility. Akin to Skype, but IMO, less hassle. You will need a reasonable internet signal, but with so many wifi spots, that isn't usually a problem.

Pre pay mobile SIMS are around the €10 mark and talk time recharges start at €5 from phone retailers. Top Up cards are €10 or 20, giving a data option.

I have no experience of contract tariffs, but am told that by choosing an appropriate package, calls and data can be quite reasonable. Phones themselves are quite expensive, so best bring an unlocked model from your home country.  You have a choice of COSMOTE WIND or VODAFONE. Much a muchness although I find Cosmote cover better in the countryside.

I pay 29 euro every month to Wind for national,international to most countries and internet,I used to pay 33 each month but when it was time for renewal I threatened to go elsewhere unless they gave me a bit better deal,they then made it 29 but without the hour a month on mobiles which I had with the 33 each month.So I think if someone wants the mobile as well then 33 is a good deal.You can talk home all day and night,if it cuts off after a few hours talk you just redial.You can juggle the deals they have a bit to suit yourself and haggle.You see I dont want a mobile phone to my head for hours on long haul chats,I dont want it to my head at all,I know there are leads to buy but dont believe it,still too much radiation,those things have come on the market without trials for health and safety and it has been predicted that there will be huge numbers of people with tumors to the head as a result.I know there is some radiation on a land line phone but nothing like mobiles.

OTE is the place to go for a landline and has outlets all over the county.  They are very helpful and have a variety of packages at different prices available including Internet, TV, mobile phones etc. and all accessory equipment. They always have some staff who are English speaking and a useful helpline.

What if you are in the countryside in a house not connected to the telephone system? 

You can pay OTE to connect you, but if the nearest telephone-connected house is at any distance this will cost an arm and a leg. Also your internet speed is likely to be low.

Forthnet 3-play by satellite (television, telephone and internet) may be your answer. It's about 39 euros a month (with free landline calls and 20Gb download allowance per month, not including 11pm-6am which is unmetered). Internet speed is good at 20Mb/s download, 6Mb/s upload (and that's actual, not advertised speed as with ADSL).

However it's no good if you are into shoot 'em up internet gaming, as the time taken for round trip to the satellite is about 0.6 of a second - you will be vaporised before you get the chance to fire back!!

When I first moved here, we had OTE, but price to call family & friends back in the US was outrageous-so did most of my communicating with them online.

Then about 10 years ago, we went to Forthnet and it was 40€/month, including internet, but best part for me was unlimited calls to the US & about 40 other countries. However, today I only pay 25€/month because twice when a telemarketer called from another company (Wind) with a better price-I called Forthnet, reminded them I was a good customer for many years & gave them the opportunity to match the price of the other company - it went from 40€ to 32€ and couple years ago down to 25€.

As for cell phones, my husband and I chose pre-paid cards, tired of being stuck in a contract paying for lots of free minutes that we weren't using. We've been using Q (division of Wind I believe) and often when I purchase a 10€ card, I get a gift of 6.70, use to be 10€ gift, but guess that's the crisis for you. You get 1000 free minutes to others with Q, and for 3€/month, I get 100 free minutes calls no matter who their provider is.  So the 10€ card gets me through three months-not bad.