VoIP

(Voice Over IP) A digital telephone service that uses the public Internet as well as private backbones instead of the traditional telephone network. Many companies, including Vonage, 8x8 and AT&T (CallVantage), typically offer calling within the country for a fixed fee and a low per-minute charge for international. Broadband Internet access (cable or DSL) is required, and regular house phones plug into an analog telephone adapter (ATA) provided by the company or purchased from a third party.

Telephone Adapter Based
VoIP services that use regular telephones can generally make calls to any regular phone and receive calls from any phone.

Softphone Based
Software-based phones require using the computer to make and receive calls. Usually a no-cost option if both sides are on the same service, softphones also mean you can call any phone in the world no matter where you are in the world from your laptop (with an Internet connection). Per-minute charges apply for calling regular phone numbers, but you may not be able to receive a call from a regular phone. In 1995, VocalTec Communications introduced the first VoIP service in the U.S., which was softphone based (see Internet Phone).

VoIP Features
Voice mail, caller ID, call forwarding and a softphone option are typically part of a VoIP package. You may also be able to choose phone numbers with home area codes outside your geographic location (see virtual phone number). See IP telephony for more details and history of the technology.

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VoIP - Voice over IP