Originally Posted by Psyke
I haven't used skype myself much, but my wife's mother uses it extensively, particularly for LD calls, and has a phone number associated with her account. She really likes it and has no issues calling or receiving calls from Cell's or land based lines.
As for SMS, I'm not sure; is email not a viable alternative? (most phones that can do SMS should be able to do email...)
I'd expect the note2 to be around $200 via 3 year contract; Note1 comes in at $99 around here.
Skype, with a subscription (quite cheap) will allow you to have a number associated with your account that anyone can call from a regular phone, let you send and receive SMS and call phone numbers. Only problem AFAIK is that you need wireless or a data plan to initiate calls.