Voice over Internet Protocol (VoIP) is a transmission protocol facilitating voice transmission over IP-based networks and other packet-switched networks. The standard Internet Protocol (IP) has given way for adaptation to voice networking.

VoIP facilitates a number of tasks and offers services that may be harder and more costly to execute using the Public Switched Telephone Network (PSTN). It can transmit more than one telephone call over the same broadband connection. This allows an easier addition of extra telephone lines to an office or home. It also facilitates call forwarding, caller ID, and conference calling at a minimal cost (none or nearly none, unlike traditional telecommunication companies).

Cost Reduction

VoIP technology is very popular because it offers compelling features that make switching from the other system more tempting. The number one advantage of using VoIP technology over traditional telephone networks is cost reduction.

The calls in VoIP can be placed across the Internet. Majority of the Internet connections are paid in a fixed monthly fee arrangement; so if the internet connection is utilized for both voice and data traffic calls, clients can eliminate one monthly payment. Moreover, plan VoIP structures do not charge the consumer for each minute of a long-distance call.

Getting Rid of Phone Lines

Using VoIP can let you call off your traditional phone service through your local telephone company. You can have all your telephone calls done over your Internet connection.

A residential consumer can save more or less $40 each month, while consumers involved in business can save thousands of dollars each month.

Getting Rid of Long Distance Charges

With VoIP, a consumer can also save on costs with long-distance calls. Most of the business and residential telephone clients pay per-minute charges for long-distance telephone calls. VoIP technology can minimize or get rid of these long-distance fees. This savings are particularly helpful to clients frequently making international calls charged per minute.

Number Portability

Using VoIP technology, a consumer can easily take his or her number with him. For example, if a person who has a phone number in Denver moves to Miami, he or she can still keep the Denver number. This is very helpful for families and acquaintances to contact one another wherever they go.