Did you ever consider using your computer and the internet connection that you already have and that you are probably already paying a monthly fee for, to phone friends, family and relatives abroad? Normal telephone rates for long distance calls can be very expensive and especially if you are calling countries that are one of the major industrialized ones.

If you would like your phone bill to much smaller or maybe even totally disappear then you really need to learn about the VoIP technology that already exists and are becoming more and more common due to the low cost (or even zero costs) and the high quality it provides. But first I will cover some basics with you about the technology with which you are able to phone using your computer and internet connection.

The 4 letter term “VoIP” stands for Voice over Internet Protocol. It is a technology that has become public within the last 5-10 years and what it does is that it converts audio signals into small data fragments called packets. These packets are then sent to the person in the other end using the internet highway. When it arrives at its destination it is reassembled and transformed back into audio that the person in the other end can hear. It might sound a little bit strange but the process in not that different from sending emails to friends and relatives. An email is also transmitted through small packets sent over the internet at the speed of light. The great about this form of communication is that it is fast, reliable and very economic.

Why not switch to VoIP?
The most obvious reason for using VoIP is that it is definitely the way of the future. There are no standard telephone providers that are able to compete with the VoIP providers low prices if they are to use their old copper based systems. Even if they reduced their earnings and profit margins, their systems are just costly and ineffective to run, compared to the new VoIP technology. Using the internet protocols to send sound packages using the internet is an extremely cost effective way for the companies to provide the ability to make a phone call (long distance and short distance). The bottom line for you as the costumer will be that you are able to realize huge savings over your phone bills and especially if you are making many long distance phone calls.

A nice little feature that you might not have thought of is that with this technology you will now be able to receive local phone calls no matter where in the world you are located. You will even be able to have local phone numbers in places like New York, Moscow, Toronto, London and any place else in the world (where there is a supplier for this product). Now that would look cool on a business card.

So when you are on vacation in sunny Italy you can still receive a local call from e.g. US. Friends and family will be surprised when you tell them that you are not hope an that you are on the other side of the planet.

So many additional free options
As you would now be using a computer you have all the advantages of that. Most VoIP companies delivers standard packages that include: answering machines, show caller ID, voice mail option, video conferencing and many more.

Skype – The Favorite Tool
If you haven't heard of Skype you haven't been reading enough newspapers. Skype is a small piece of software that was developed by two young Scandinavian men. Not to long ago it was bought by Ebay and they both made fortunes.

Skype provides a piece of software that you download to your computer. To be able to call someone else for free, the other person has to have the Skype installed as well prior to be receiving the call. Skype is 100% free to download and you are only charged if you would like to take advantage of some of the extra options that are available (voice mail, video conferencing etc.).

A few years ago they also developed the concept of “Skype Out”, which offers you the possibility to contact any telephone line, without needing the end user to have the basic program installed. All they would need is a phone and a phone number.

A few of the other companies that you could benefit from knowing are Vontage, Packet 8 and Sun Rocket. You can probably find many other great companies but be sure to do your research if you are not using one of the larger providers. Talk to people that have already used the smaller providers' services to see whether they are happy with it.