VOIP is an acronym for Voice Over IP, or in more common terms phone service over the Internet. If you have a reasonable quality Internet connection you can get phone service delivered through your Internet connection instead of from your local phone company.   Some people use VOIP in addition to their traditional phone service, since VOIP service providers usually offer lower rates than traditional phone companies, but sometimes doesn't offer 911 service, phone directory listings, 411 service, or other common phone services. While many VoIP providers offer these services, consistent industry-wide means of offering these are still developing.

How does VOIP work?

A way is required to turn analog phone signals into digital signals that can be sent over the Internet.
This function can either be included into the phone itself (See: VOIP Phones) or in a separate box like an ATA .

VOIP Using an ATA

Ordinary Phone ---- ATA ---- Ethernet ---- Router ---- Internet ---- VOIP Service Provider

VOIP using an IP Phone 

IP Phone ----- Ethernet ----- Router ---- Internet ---- VOIP Service Provider

VOIP connecting directly

It is also possible to bypass a VOIP Service Provider and directly connect to another VOIP user. However, if the VOIP devices are behind NAT routers, there may be problems with approach.

IP Phone ----- Ethernet ----- Router ---- Internet ---- Router ---- Ethernet ---- IP Phone

Why use VOIP?

There are two major reasons to use VOIP

• Lower Cost
• Increased functionality

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