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Viber uses WiFi or 3G data depending on what's available and call quality is excellent. If Viber isn't running when you receive a call, you receive a push message on your screen to alert you to the call. Just tap on the message to answer the call.
Setup is simple; just launch the app, enter your iPhone number and you'll be sent a code by SMS to confirm it's your number. When I installed Viber I was impressed to see that several of my contacts were already using Viber. When new friends join, you get an alert.
Any drawbacks? No voicemail so if the person you're calling isn't available you'll need to make a regular call to them to leave a message.
Viber has got more good stuff in the pipeline - free SMS is coming later this month, followed by an Android app and later a BlackBerry app.
You can follow @Viber on Twitter.