Voice over IP networks provides the user the opportunity to enjoy the use of telephone services through their Internet connection. Several providers of VoIP offer packages in varying degrees. These packages allow the user to have primarily the same features they have with their traditional phone service. Along with the added benefit of using their computer to make calls by having a "soft phone" in the same window as their instant messages. There are two different types of service for Voice over IP networks: hardware VoIP and software VoIP.

Several providers of telephone services are also offering Voice over Internet Protocol (VoIP) services. They know that it is less expensive to carry voice traffic over Internet protocol (IP) networks than the public switched telephone networks (PSTN). The reason that Voice over IP networks can carry this traffic cheaper is because IP networks make better use of the bandwidth that is available. When making a call the voice changes from analog to digital, it is then highly compressed and carried in packets over the IP networks. With this technology, the Voice over IP networks can carry a significantly higher volume of calls as the PSTN and provide better voice quality. In addition, the customers benefit with the savings passed down to them through lower rates and paying for one bill for two services.

Software VoIP benefits those who do a great deal of travel or limited phone use at home. It is great for wireless set-ups. When you set up an account with a provider of software VoIP, you can then download the service directly to your computer. All you need is a high-speed Internet connection; sound card, microphone and speakers, and you are ready to make telephone calls through your computer. The convenience of the software VoIP is that wherever you travel, when you take your laptop with you, you also have use of your phone. The location of where you can call is dependent on the type of service you chose.

To use Hardware VoIP you need an adapter to connect your current telephone to your broadband service. Several providers will offer the adapter free when you sign up for one of their VoIP plans. Monthly service rates can range from $9.95 to $49.95 per month. You can choose between residential or business plans, limited or unlimited calling. Most providers offer a plan to match any budget or lifestyle.