A VoIP service is also known as Voice over IP. This label is used to describe transferring of voice data using the IP protocol. The IP protocol is the most commonly used protocol around. On the Internet, digital data is moved around using this protocol. When you play multiplayer games, many servers use the IP protocol as well. As you can see, there are many uses for the IP protocol. The challenge here, is to find a way to convert voice data into digital format that can be transferred over the Internet using this very same protocol.



That has now been accomplished via 2 methods - using hardware of software. Let's discuss about hardware based equipment first.

Special hardware, mostly known as IP phones, allow an individual to make a voice call without the use of a computer. The gadget is able to convert voice into digital audio, and send it over the Internet. The IP phone will, of course, have to be connected to the Internet (such as a DSL line). You can also connect the IP phone to a laptop of a desktop to use as a handset.

If you do not have an IP phone, you will need special software to perform the conversion functions. In this case, you must have the use of a computer system. If you don't have a handset, your next best alternative is to use a pair of headphones with a mic. Your mic doesn't have to be a professional mic. Any ordinary mic will do. Your software should allow you to test the mic to make sure that it's properly connected.

The next thing you need is a VoIP service provider. These service providers make it possible for you to connect to another person within the same network, usually for free. The assumption here is that the other party must also be connected to the Internet, and he or she is also a member of the same VoIP network. There are 3 scenarios in which you have to pay some fees.

1) You call someone who is not a member of the VoIP network that you are in.

2) You make a call to a traditional land line. The service provider make this possible with their sophisticated equipment.

3) You call someone on a cell phone. It doesn't matter where the location is. As long as there is a phone signal, the other party will be able to take the call. This works in similar fashion as calling to a land line.

Since VoIP service providers invest in sophisticated equipment to make land calls possible, they have to charge a fee to recover their investment, and to stay profitable. That is why consumers are charged a small fee for making land calls. Even then, these fees are so much lower than traditional long distance rates that most people don't even mind.