There is no simple answer to that question, but this article will work to de-mystify this magical service called VOIP.

VOIP stands for Voice-Over Internet Protocol. It is a new technology that allows telephone signals to be converted into digital signals that can be transmitted through a specialized internet connection.

Typically most people are paying exorbitant long distance rates to talk to people outside of their area code. With VOIP you instead send your voice through a high-speed internet connection and never pay a dime in long distance fees.

There are multiple VOIP providers available and the best way to choose is research which providers cover the area you are going to be calling most of the time. Some providers charge a flat monthly rate for a specific geographic area, while others allow free calling between members. As long as the VOIP provider has a service available in your area you can sign up.

One of the many benefits of VOIP is its simplicity and it was successfully carried over to the hardware side of the business as well. VOIP hardware can be as simple as a headset connected to your computer. This method transmits the data directly over the high-speed connection to the recipients local phone service where it rings to their phone.

The alternative is a converter box attached to your telephone which converts the signal to digital, sends it over the telephone providers network to a VOIP network in the recipient callers area. It is then re-converted back to a telephone signal and sent over the phone to the designated number.

Regardless of which provider you choose to go with, VOIP will save you money. VOIP can be essential in reducing monthly business costs and is becoming more and more flexible with its options. VOIP can be used for 3-way calling, dialing cell phones and can even dial computers directly. This can eliminate three to five service charges per month in addition to virtually eliminating long distance billing.

On a consumer level, the average long distance bill per month can range from twenty dollars to in excess of two hundred dollars. If you could switch to one monthly payment of $24.95 and call all the same people you did before, for even longer than before, wouldnt you switch?

More and more it is becoming apparent that the internet is the future of all communications and information. It has a global impact and provides both businesses and consumers with more options than ever before. Voice over internet protocol is only the first wave of technological advancement in the ever-expanding sea of known as the telecommunications market.