I recently bought and just used for the first time a gadget ("sticker") from a company called KnowRoaming. It's basically a printed circuit that sticks onto your regular (home) SIM card. When you're in your home country you are using your regular network, but when you are traveling -- and it works in a LOT of countries -- you are using prepaid time on their network at a much lower rate than roaming.
I live in Panama and last week used it on a trip to the US. After a bit of set-up hassle, which I resolved by looking at their videos, it worked great. My data connection, while not the fastest, worked well and was reasonably priced (about 11 cents per mb). Telephone was also pretty cheap.
I think a local SIM card is more economical, but for traveling around to a bunch of different countries this is a pretty good system. They also gave me free US and UK telephone numbers. I'll be riding around Europe this summer and plan on buying a SIM card when I'll be in a country for more than a couple of weeks, but will use this for more temporary stays. Also, this is good if you need to use your phone when you first arrive in a country and haven't had time to buy a local chip.
Check out their web site at Reduce Roaming Fees with KnowRoaming but also do a Google search for reviews.
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Steve Barnett
Panama City, Panama
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