You may be asking yourself "what's the difference?" service providers usually offer lower rates than the traditional phone companies, particularly for long distance and international phone calls.

VOIP is works by transferring voice into digital data over the Internet. Because the data is smaller, VOIP users save on valuable bandwidth as well. If you have a high-speed internet connection in your home, then you can utilize . Purchasing some equipment, such as VoIP phone adapter may be needed.

The phone adapter allows you to use all your standard touch-tone telephones with the VOIP technology. You may also need to purchase a router. Your VoIP service provider usually supplies most of the hardware you will need.

VOIP systems can even integrate your telephone needs with your computer applications such as E-mail, Fax, Web Conferencing, and Video Phone needs. By combining all of these services into one basic application, you save money.

You can use your phone and access all of your other programs at the same time, allowing greater freedom and simpler way to use all of these different mechanisms.

Many VOIP users can take their phone adaptor with them, and use their telephone number anywhere they have access to an Internet connection. Therefore, allowing users tremendous flexibility. This means that you are able to take phone calls on your regular number, even if you're traveling overseas.

VOIP even offers services like call-waiting, caller ID, call transfer, and three-way dialing as part of their standard features. Most traditional phone companies will charge you additional fees for these additional features.

Quality of voice calls from VOIP phones are as good as and sometimes even better than using a regular telephone network, greatly increasing its appeal.

VOIP comes in two basic types: hardware-based services and software-based services. Hardware-based services uses a box between your broadband internet router and a regular touchtone phone, in software-based services, you will need a computer.

The software-based services handle call-processing duties on your internet-connected computer instead of on a separate dedicated box or phone, and most lack complete call-and-receive interconnects services to public phone networks.

Many software-based VOIP packages are free or very affordable. However, free calls are usually limited in making just PC-to-PC calls. In software-based packages, you usually have to buy "credits" to make calls from your computer to regular landlines or cell phones.

The hardware-based services usually offers higher voice quality, better reliability and more features, such as white-page listings and emergency number access. These systems allow you to plug a standard phone into a converter box, which in turn plugs in to your broadband modem or home router.

VOIP phone service appears, to the user, to operate very much like the traditional telephone networks.

VOIP phone services are not only limited to voice calls. Its services also have the ability to make or receive video calls. This service is one of the most appealing to people who are considering using the VoIP system.

Once set up, you can use your VOIP phone service to place or receive calls from anywhere in the world. One of the most attractive selling points of a VoIP phone service is the low cost of long distance and international calls, sometimes even free.

Owning a VOIP phone has some few drawbacks as well. You must, of course, have access to a high-speed internet connection such as the DSL, and if your internet connection is down, you lose your VoIP phone services until you get back online.

Steve