VoIP: What you need to know

As the popularity of Internet telephony surges, and lawmakers put more pressure on VoIP providers to fully support 911 services, many consumers are asking what exactly they need to know about the technology.

Since about 1995, when it was first offered to consumers, VoIP has become one of the world's most widely used telephony products. Current estimates put the number of VoIP users at about five million, although industry observers say that number will increase fivefold in the next two years.

VoIP also is one of the most economical phone technologies available. Many VoIP services are available for as little as $20 (£11) a month, though with some important constraints.

The key to making the most of VoIP is understanding its basic forms and what you might expect to pay for them. Here are the essentials.

What is VoIP?
VoIP refers to voice calls that are routed over online networks using the Internet Protocol — the protocol that serves as the backbone of the Internet and is used to ferry emails, instant messages and Web pages to millions of connected devices.

VoIP tends to be relatively inexpensive. Why?
VoIP calls are just another application riding over the Internet. And these calls are unregulated. So at their core, they are no different from emails, instant messages or Web pages, which all can be distributed for free between Internet-connected machines. Those include computers and wireless devices, such as cell phones and handhelds, that are set up to receive online information.

Why do some VoIP services cost money, and why are some free?
A VoIP service can connect users not only with other VoIP customers but also with phone services that are offline, such as those that use traditional landline networks and mobile networks. For those calls, VoIP service providers must pay access fees to the landline and wireless operators. Those charges are passed along to VoIP customers. VoIP services that stay on the Internet — calls that are between personal computers with VoIP service — are free.

What do you need to use VoIP?
The first thing you need is an Internet connection. It can be as basic as dial-up service, but the faster your Net connection...

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