Rich's Tongfamily (Richtong.net add-on)

Most calling cards don’t work in Iceland. But, the local company called “Atlas Simi”:http://atlassimi.is is just $0.12/minute back to the US. It cost is 1,000Ikr for 450 minutes, so pretty amazing net, net. The card also works in the UK and Denmark. Kind of cool that you can buy it online too from the sitel.
The rates are pretty good particularly if you call from a landline in Iceland where the cost is low. If you use mobile then of course it is more.
For prepaid GSM cards, there are two choices according to “PrepaidGSM.com”:http://www.prepaidgsm.net/en/islanda.html. From celand Telecom Ltd (Landssiminn), you get a card that is 34 IKr (US$0.50) per minute to the US and 9 IKR for SMS sending. This is via “Siminn”:http://simi.is (“English”:http://simi.is/control/index?pid=6736). You can buy the prepaid SIM card at the airport, Shell stations or Siminn’s retail locations.