IP telephony refers to the system of transmitting voice over a data network such as in broadband Internet connection. In comparison to the traditional analogue phone line, as an extension to the practical Internet applications, it presents a cheaper and more accessible option to communicating with people from any part of the world. With its call sound quality that is comparable and sometimes better that that observed in analogue telephone conversations, it presents a modern and improved system for call management having total flexibility in using and locating phone numbers.

IP telephony, broadband telephony or Voice over Internet Protocol (VoIP) applications is operated over the Internet through packets of switched network. It introduces a system of voice transmission that carry telephony signals as digital audio, which reduces data, rate through speech data compression methods. It encapsulates the digital audio signals into the data packet stream over the IP. In sense, as a particular call is made, the conversation is broken down into tiny packets for faster and clearer transmission, which is then reassembled at the receiving end. One common misconception about IP telephony is that it needs to access a computer to operate. That is not the case; however, it does need a broadband Internet connection to operate.

A VoIP service usually comes in two types of public switched telephone networks (PSTN), the access numbers and the direct inward dialling (DID). In access numbers service, the caller is required to have the extension number of the person called through VoIP. It needs to key in the extension number of the person being contacted. On the other hand, DID presents more convenient and direct solutions to callers; it does not need codes or extension numbers to contact another VoIP user. The great thing about these services is that they provide solutions to the difficulties encountered in implementing traditional PSTN calls.

• Computer to computer applications is perhaps the easiest way of availing VoIP services for free, no matter the distance. There are also companies that offer free and very low long-distance call fees. All it needs is a computer with a microphone, speakers, sound card and Internet connection that also runs software that supports VoIP applications.

• Computer to telephone VoIP calls, similar to computer-to-computer calls, requires a software client. It allows a person to call anyone from his computer. While the software usually available for free, the calls may require minimal fees. Call rates depend on the software provider or on the VoIP service setup provider.

• Telephone to computer calls is now made possible. Today, a number of companies are providing special numbers and calling cards, which enable phone users to call a computer user. However, the computer needs to have a vendor's software installed but is a lot cheaper than making traditional phone-to-phone long-distance calls.

• Even telephone-to-telephone calls are possible with VoIP. By using the gateways, anyone can easily and directly contact any standard phone in the world via IP-based network.

The practicality, accessibility, value and ease of use of IP telephony or VoIP services are increasingly gaining popularity. Today, more and more businesses and companies are installing and using IP telephony systems. Time will only tell on when with IP telephony or VoIP services find their way into today's modern homes.