If you haven't heard much about VoIP before now, you certainly will in the future due to its rapid emergence as a major communications technology. VoIP stands for Voice Over Internet Protocol, and it basically is the ability to make telephone calls over the internet to either a receiving computer or telephone.

For years standard telephone lines have used a circuit switching network to transfer telephone calls, but VoIP technology uses something called packet switching instead where audio is converted into packets of data that are sent over the internet and reassembled on the other end by the person's computer or telephone. If a high-speed internet connection is used, a conversation can take place that easily compares to a regular telephone call in sound quality.

All of this may sound like a very new technology, but in reality it's not. Programs that make use of VoIP technology were springing up on the internet more than ten years ago, although they were much less capable than those that are available today. Also every year continues to bring higher standards of quality for VoIP applications, and it will no doubt be a viable technology for many years to come.

A good example of the use of VoIP technology is instant messaging programs. If you have used an instant messaging program that is voice enabled, where you can communicate by audio, video and chat, it is in large part due to VoIP. This is because VoIP is able to integrate audio, video, data, e-mail, and more simultaneously. Although most consumers will use VoIP for telephone calls initially, many businesses are already finding expanded uses for VoIP technology.

Several telephone companies are realizing the potential for VoIP services and so companies like Sprint, Verizon, AOL and others are now offering VoIP plans to consumers. One of the distinct advantages of buying a VoIP solution is that it costs significantly less than most standard telephone services. In fact, most service plans will allow you to make unlimited long-distance telephone calls on your VoIP plan for very inexpensive rates. And the subscription rates are usually free of many of the taxes and regulatory fees that often accompany your local telephone bill.

Another major advantage of many of the current VoIP subscription plans that are available is that they often include extra features such as call waiting, call forwarding, three-way calling, voice mail and much more. Quite often, these extra services cost more when included by your local telephone service, but VoIP plans usually include them at no extra charge. Another interesting side benefit is that many providers will allow you to select a new area code and phone number for your VoIP calls, so if you have family or friends in a distant town, they can call you for free on a number that is local to them.

Hopefully this information on VoIP technology will help you understand more about how it works and how it can be beneficial for you.