What is VoIP?

VOIP -or else known as Voice Over Internet Protocol- is a service that allows its user to make phone calls without using a standard telephone line. Instead, the user can make his phone call over the internet, meaning that the communication will be transmitted digitally, using speech compression algorithms, instead of using the telephone's signal. In this respect, traditional telephones are like analogue TVs and VOIP phones are like digital television - the future!

VOIP Technology boomed in the early 2000s with the adoption of VOIP phones by many small businesses wanting to keep their communications costs low by combining their broadband and telephone spend into one. Furthermore, this new way of communicating at a lower cost across borders and oceans allowed SKype to flourish with their product that attempted to replace the instant messaging trend set by MSN Messenger. Skype was for a long time "the face of VOIP", and attempted to bring the product to the mass market by going as far as giving away free VOIP handsets which you could plug in your computer and make international calls at reduced prices.

VOIP Service Providers usually charge on a flat fee basis, however this depends on the type of call (audio, video or data) and the providers' dealings. Furthermore, it is interesting to note that international callers can make huge savings using VOIP technology as it effectively breaks down geographical barriers by using the internet's network as a medium.

VOIP Telephones usually have many functions that out-date traditional telephones. VOIP allows users to make savings on their phone bill, but can also include functions that one would have to pay for with a traditional phone service provider such as caller ID, video calls, and encryption of the calls/data you are making. VOIP phones have been adopted by many small businesses and call centres wanting to lower their costs, and have encountered a huge success as the ability to receive and make phone calls has never been easier: all you need is a connection, and you can call Japan for a flat rate! Many call centres now use VOIP as it is cheaper and allows calls to be made from any internet connection -providing it is fast enough- and VOIP is set to be the future of telecommunications.

Lloyd Oliver is a technology journalist who writes for G3, a VOIP Service Provider who delivers solutions for small medium and large businesses.

If you want to find out more about IP Telephony, make sure you read G3's in depth analyses of VOIP technology and the ways in which you can use it.