If you are looking for a luxury accommodation, a hostel is not what you want. If you want a practical, basic room and sleeping facility, a hostel is often the perfect option. Hostels are considerable cheaper than a hotel or motel due to the different arrangements.
Most hostels will have internet access but they may not have phones in the rooms. They will typically have public access phones that are a pay by use phone. Some may have free local calls while others may charge.