Another option for traveling with your phone?
I travel frequently with my unlocked HTC phone and I'm usually going to many countries during a trip, so buying a local SIM does not make sense for me.
When I travel, I swap out my Canadian Fido SIM for a prepaid "World" SIM. This card has a UK and a US number. In Mexico, USA and Canada, I use the US number and in the rest of the world I use the UK number. The rates are much lower than using Canadian (Fido, Rogers, Bell, Virgin, etc) international plan rates, plus there is access in many more countries. Data plans are available too.
The company I use supplies a small app that allows you to see how much money you have left on your card, allows you to add money for time or data, and also does other things like converts currencies, gives you local weather, etc.
WARNING 1: There are a few countries in the world that have outrageous international rates no matter what plan you use. Cuba is one and I think Peru is another. If you know where you're traveling too, look up the rates first.
WARNING 2: If you are running any kind of anti-theft app that sends the location of your phone to another phone on a daily basis, you will quickly run through your prepaid plan (bitter experience). Ironically, traveling is, of course, when you might most need anti-theft/loss.
Local SIM cards are the best value if you are staying put in one travel spot. If you are only phoning home, your local provider can probably provide an economical deal on one country international.
International SIM cards work by your dialing the number you wish to call, then waiting until your phone rings you back--usually just a few seconds. When you answer, the phone is ringing the number you originally punched in.
Some of the best known sellers of International SIM cards include: Telestial, iRoam, Go-Sim and OneSimCard. A SIM is usually about $30-40 and includes some air time.