Long distance phone calls will never be the same again thanks to Voice over Internet Protocol (VoIP). The basic premise for this technology is to convert analog audio signals into digital data for transmission over the Internet, a technique which allows you to make your phone calls over the internet.

The way VoIP works is pretty straight forward. Whereas the traditional circuit switched technology reserves a dedicated path from a caller to the receiver for the entire duration of the conversation, VoIP converts the voices into data for transmission over data networks. At the receiving end, the data is once again converted back into audio.

The implication of this process is that a regular Internet connection is all one needs to make absolutely free phone calls. In using free VoIP software for Internet phone calls, the role of the telephone company and consequently its charges are completely eliminated.

This path breaking VoIP technology is poised to redefine the very method the world’s phone systems use. Major players in the VoIP world, like Vonage, are already making their presence felt having been on a steady growth for some time. Leading traditional carriers like AT&T are already in the process of incorporating this revolutionary new technology in markets across the US. Simultaneously, regulatory agencies including the FCC are taking a long hard look at VoIP to harness the technology into a more secure format.

Among the multiple advantages attributed to VoIP technology, include the use of the same lines for both data and voice transmissions. With one network, both installation and maintenance expenses are minimized. Compression technology makes it possible for multiple calls, as many as eight, on the same lines as opposed to the circuit-switch systems. Neither is there any compromise on sound clarity.

With VoIP it is also possible for various devices to be inter-linked, thereby enabling added incentives like PC-Telephony. Integrating the phone system to a customer database provides ideal support for customer relationship management or CRM.

Phone calls using VoIP are not subject to toll charges. When both sides have high-speed Internet access and VoIP phones, distance charges don’t apply no matter how long the call duration or distance may be. The possibilities in terms of businesses and consumers to save on costs are therefore staggering. What’s more VoIP can also be utilized in setting up an independent private interoffice networks for main to satellite office communications.