Claims appear to be flying around saying that the recession is over, that the banking and housing industries are starting to show the green shoots of recovery and that we can all breathe a little easier. The truth, however, is that the average person in the street is still having to watch every penny and make savings wherever possible. One of the major household expenses is the cost of phone calls, particularly if you have friends and family abroad or, in an increasingly diverse working environment, work from home. Anything that can cut the costs of your monthly bills is to be welcomed, which is why so many people are taking a serious look at VoIP.

VoIP (or Voice over Internet Protocol) is a generic term used to describe various methods of using the Internet and broadband facilities to make and receive telephone calls. VoIP breaks down a telephone call into data packets transmitted through a broadband network. Because it uses technology that is already in place (namely your computer and broadband connection), there are no extra add-ons to pay for, no additional cabling or sockets required. It is merely a method of adapting a multi-application tool such as a computer to do another job.

And it does that job exceptionally well. One aspect of this new technology that has really revolutionised the way people communicate with each other is the adaptable nature of the beast. Mobile phones changed the way people think about communicating, bringing in the advent of text messaging and, as microchips got smaller and Wi-Fi burst onto the scene, Internet connection on the move. VoIP hasn't been left behind in this technological revolution and isn't just restricted to your home PC or laptop. With bluetooth link-ups and mega-pixel touch screen technology, a VoIP call is just as easily made from a mobile phone as from a PC. There's no need for headphones and a base station link-up – in the modern age communication is done as easily on the hoof as it is sat at a laptop.

The key element in VoIP is the price. With some home phone providers looking at driving people more towards ‘packages' rather than basic land line systems by putting the price of a phone call up, VoIP providers are keeping the cost of PC to PC or PC to mobile phone calls down. It isn't free, as the caller is still charged for outgoing calls, but if you hunt down a broadband provider that includes line rental in the cost of their package, the saving can be considerable. VoIP only needs a relatively high speed Internet connection to carry VoIP calls, reasonably up to date hardware and a like-for-like system at the other end. VoIP providers typically offer capped or unlimited call plans, meaning that you can make as many cheap phone calls as you like for a set monthly charge. It's the modern version of the old-fashioned phone card.

During a recession, every penny counts. Whether you're a high-volume phone user for family reasons or for business, VoIP really does offer an efficient, cheap alternative to the (now somewhat outdated) traditional method of communicating. It was inevitable that the development of a ‘verbal email' system would happen, and VoIP is the result of that technological advancement. The recession is probably one of the best things to happen to VoIP – as people take a long, hard look at how they communicate, they are more open to adopting new methods of making calls, especially if that new method means those calls are considerably cheaper than before.