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According to Jupiter Research, more than 20 million U.S. households will have VOIP phone service by 2010. VOIP (Voice Over Internet Protocol) uses the Internet to transmit voice signals and make phone calls. The history of VOIP started with the growth of the internet in the late 90s. Small companies started offering free phone services through the internet and PC. However, the calls were marked by bad sound quality and latency. These problems have disappeared with broadband connections becoming popular as well as new VOIP hardware emerging.

There are two ways to receive VOIP service. One is through a phone adaptor/router, which is used to connect traditional phones to the internet. The adaptor’s purpose is to convert analog phone signals to digital voice data signals. The second way to receive VOIP service is through PC–to–PC calling. Skype is the leader in PC–to–PC calling while Vonage is the most popular adaptor based VOIP service.

VOIP - Phone Adaptor Method
VOIP Phone Adaptor Method
VOIP - PC–to–PC Calling Method
VOIP PC to PC Calling Method

VOIP Features and Benefits

Note that not all carriers have these features, and some features cost extra.

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