Voice Over Internet Protocol is a technology that makes it possible for telephone calls to be made over the internet. Unlike traditional land-line service, internet phone service does not rely on the public switched telephone network (PSTN) that telephone companies use; it uses a broadband internet connection to route calls over the World Wide Web. Broadband phone service is unbelievably cheap because there are no high phone company fees involved.



Internet phone calls originate on the internet, but do not have to terminate on an internet phone. You can use broadband phone service to call anyone anywhere in the world. The person you are calling does not have to be using internet phone service.

There are two types of internet phone service that are very popular and widely used today – hardware VoIP and software VoIP (also known as soft phone, IP phone or SIP phone). Although both use the internet to route phone calls, hardware VoIP uses a small piece of equipment called a VoIP adapter to process calls and SIP VoIP uses your computer and a special software program for calling. Both hardware and software-based internet phone service provide a money saving alternative to regular land-line service, but each is best suited to meet a certain type of need.

Software-Based Internet Phone Service

Because software-based internet phone service works via your computer, it works best for occasional use or for traveling. You have to have a PC with a sound card, speakers and microphone. For the best quality, it is recommended to use a headset with microphone, or a special device called a USB phone or IP phone. Once you have established an internet connection, you use a VoIP software program to make and receive calls. Although it is possible to make internet phone calls over a dial-up connection, broadband internet is recommended for the best quality.

Most software-based VoIP providers allow you to download their software and set up an account for free. With most IP phone companies, “in network” calls are usually free, and you only pay if when you make calls to outsiders. You can get really cheap international long distance rates with this type of service, and many people use it solely for this purpose. There are many good softphone internet phone service providers to choose from, including Skype, Net2Phone and WebPhone. Vonage, who has up until recently been a hardware-based VoIP provider, is now also offering software VoIP service.

Hardware-Based Internet Phone Service

Hardware-based internet phone service is much easier to use, as it looks and feels just like regular land line phone service. This type of service is best suited for home and business use, as it requires no computer and you use regular telephones to make calls. Most people use this type of VoIP service as a replacement for traditional phone service. When people talk about broadband phone service, digital phone service or internet phone service, they are usually referring to hardware-based VoIP. The VoIP company you subscribe with provides a small device called a VoIP adapter, which connects to the internet on one side and to a telephone on the other. The adapter takes care of routing all calls to/from the internet.

Broadband phone service requires a subscription, and you can normally choose between a “limited” plan of 200-500 local and long distance minutes or an “unlimited local and long distance calling” plan. With unlimited plans costing anywhere from $18 to $30 per month, the majority of internet phone service subscribers choose this because it is most cost-effective.

All VoIP providers offer cheap international calling rates. Many have an optional “unlimited international calling” plan that usually runs around $50 per month and includes local and domestic long distance as well. There are several good broadband phone service providers to choose from. Some of the better known VoIP providers are Vonage, SunRocket, Packet8 and AT&T CallVantage.