VOIP stands for Voice Over Internet Protocol, and is a way of making and receiving phone calls via the internet instead of through the usual telephone landline system or a mobile network. In theory you could reach almost anyone in the world using VOIP provided both you and they are connected. Your internet service needs to be of reasonable quality and speed.
Another advantage is that VOIP tends to be cheaper than the traditional phone services and this can be a big advantage to businesses, especially small businesses where costs need to be kept to the absolute minimum. Thus voip phone systems are becoming very popular with business organisations, making savings of up to 80% on phone bills, especially if there is a good deal of international calling.
The method works by converting the analogue sound signals of speech in the phone into digital signals that can then be carried over the internet. The digitizing can be done by a special VOIP phone handset or by a separate box called an ATA or Gateway. The signals may go via a VOIP service provider or straight to the receiving IP address. VOIP phones can be simple devices or relatively sophisticated ones that provide a total phone solution handling incoming and outgoing calls and re-routing as necessary within an organisation such as a business. Such a VOIP phone system is virtually a necessity for a business handling many calls a day. (more...)