Youtube TV, get 70 cable and local channels for $50/month.
You can get phone service via the Internet for anywhere from near-free to $6/month. Skype will set people up with a dial-in phone number for like $2, and I don't think it's much more to dial out. It can be set up on most mobile devices, and used over WiFi. It's a little trickier to wire a whole house full of analog phones, but not impossible. That's what Vonage and Magic Jack were/are doing.