VoIP makes it's mark with consumers and business

VOIP – Voice over Internet Protocol - is a new telephone technology that allows subscribers to make calls using the same networks used by the internet. The name can be misleading because the service uses the internet protocol but does not use the internet.

Because of the method that these calls are sent and received, VOIP calls are typically less expensive than traditional phone calls. Many providers charge a basic subscription rate and then calls are free to other VOIP subscribers around the world.

Calls to traditional phone lines are also possible with VOIP, although there is often a minimal charge with these calls.

VOIP is making its mark in popular society mainly due to advertising. Providers like Vonage are intriguing consumer market with ads that lure them into abandoning traditional telephone companies for this new way of “phoning home.” This is good for VOIP, but could spell trouble for the large telcos.

VOIP providers are also making a play for the commercial market, although the current reliability and quality have been hindering this move. The ability to add lines and features with little or no cost to the SMB industry makes VOIP the best telephone choice.

With providers striving to increase the performance of VOIP, it will continue to increase its subscriber base in the telephone industry.

Kathryn Lang is journalist and editor VoIP News, writing about VoIP technology. She is also a regular commentator at Techwatch, especially on the VoIP forums.