| When the Internet is used for communications by | | | | phone system with extension dialing, seamless call |
| voice, facsimile, or video conferencing the process | | | | transfers, voice mail, caller ID, conference calls, |
| is called Internet telephony. Known as voice over | | | | music-on-hold, free phone calls, as well as ability to |
| the Internet VoI or voice over IP, VoIP, in this | | | | transfer data.Even while making or receiving calls, |
| system, sound is converted into digital packets | | | | you can surf the web or use other web based |
| that are then transmitted over the internet to the | | | | applications. You will also be able to retain your |
| receiver where it is once again converted into | | | | existing PSTN phone number if the provider you |
| sound or text.All one needs is a multimedia | | | | use has this facility. A VoIP provider is a |
| computer, a high speed Internet connection, a | | | | telecommunications company that will handle the |
| sound card, speakers, and a microphone. Since it | | | | technical aspects of the calls and provide the |
| reduces telecommunication costs significantly, | | | | interconnection between VoIP and PSTN |
| many individuals and businesses are adopting this | | | | networks. Internal calls are transmitted as data on |
| system. The charges of internet telephony are | | | | your company network while external calls are |
| not dependant on the distance but just a flat | | | | transmitted through the network to a gateway |
| fixed rate for use of bandwidth. The only thing is | | | | which in turn connects to a public telephone |
| that both you and the person you are calling will | | | | network.The advantages of Internet telephony |
| need to have the same or compatible | | | | are numerous the first being cost effectiveness. |
| software.First introduced in 1995 the PC-to-PC | | | | With a high speed internet connection phone calls |
| telephony is set to grow from US$ 1.96 billion in | | | | can be made all over the world for almost free. |
| 2003 to US$9.08 billion in 2007. Industry experts | | | | By signing up with a VoIP provider you can get |
| predict that over half the phone traffic in the | | | | unlimited calls within the country at very low |
| world will be based on IP protocol.To use the | | | | costs. The system is portable and you can take |
| VoIP system, all you need is a regular phone, an | | | | the headset or internet phone along with you |
| adapter, broadband Internet service, and a | | | | when traveling. When plugged in to an internet |
| subscription to a VoIP service. All your offices on | | | | connection anywhere in the world you can both |
| a LAN or WAN can benefit from a common | | | | make and receive calls at no extra costs. |