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What is VoIP (Voice Over internet Protocol)?

Voice over Internet Protocol also known as VoIP, the routing of voice packets of an Internet connection. VoIP does require an Internet connection to work in both homes and businesses.

VoIP Functionality
Along with all the functionally of a traditional PBX system, VoIP systems allow calls to be routed anywhere in the world, where there is an Internet connection. VoIP allows for free in country long distance calls and cheap international long distance.

VoIP, or Voice Over IP to give it it's full name, is basically telephony services over the public Internet using TCP/IP. A conventional telephone will have a wired connection to a local telephone switch and will generate a switched connection over the public telephone network. In a VoIP connection, the connection is converted to TCP/IP and then made across the Internet.

VoIP can be used just like a conventional telephone service, so it can be used to connect to other VoIP phones, conventional phones on the PSTN, or POTS (Plain Old Telephone Service), and Mobiles, as shown below. VoIP telephones can be physical phones, that look just like conventional telephones, or they can be 'soft' phones that reside as software on a PC. The PC used in this way requires a sound card with speakers and a microphone, which can be in the form of a headset or VoIP telephone connected to a soundcard or via USB.

One huge benefit VoIP provides is that for some connections there is no cost for calls made. These connections are normally those made to the same network, i.e., another user of the same VoIP service as the originator with call charges incurred when crossing to other networks such as the PSTN or Mobile networks. Charges may also be incurred when connected from one VoIP provider to another. Typically providers will offer quantities of times for monthly fees, in much the same way as fixed fee mobile phone contracts.

Although VoIP has been around for a few years with products such as NetMeeting or MSN, where the remote user had to have the same application as the caller had, there are still issues concerning implementations of the services available which can result in incompatibilties between some providers implementations of VoIP services. The IETF (Internet Engineering Task Force) has been involved in developing a standard for VoIP called SIP (Session Initiated Protocol), which is becoming the accepted protocol for Internet telephony.