Voice over Internet Protocol (VoIP) technology allows telephone calls to be placed over a network such as the Internet. In its most basic sense, audio analog signals, such as voices over the telephone, are turned into digital data and transmitted over the Internet.

Requirements

A broadband Internet connection, either cable or digital subscriber line (DSL), is needed for VoIP technology. A computer, adapter or special phone will also be required.

Features

VoIP technology offers traditional calling features (often at no extra cost) such as caller id, call waiting, return call, call transferring and three-way calling. However, additional features such as sending the call directly to voice mail, sending the caller a busy signal and checking voice mails from email are often available with VoIP technology.

Benefits

A key benefit of VoIP services is being able to talk on the phone while using the computer. Expenses are also often reduced because of the bundling of broadband Internet and phone services.

Disadvantages

A noteworthy disadvantage with VoIP technology is that some VoIP systems are not directly connected to 911, so the 911 system would not be able to locate the call's origin. Additionally, in some cases, the VoIP system will not work when there is a power outage.

Costs

Costs are typically lower than regular phone calls because calls are usually not billed by the second or minute. Some VoIP providers charge by megabytes, whereby information sent over the Internet is recorded vs. time spent on a call, often resulting in a lower monthly fee.

Source:

Federal Communications Commission

University of Michigan: ITCom

Federal Communications Commission: VoIP and 911 Service

More Information:

VoIPReview.org: Reviews of VoIP Providers

MyVoIProvider.com: Top 100 VoIP Ranking

VoIPNews.com