VoIP stands for Voice over Internet Protocol but is more commonly know as Digital Phone, Broadband Phone, or even internet Phone service. Simply put, it refers to using your internet connection to talk to people. The people you talk to can be across the world or even just down the block.
Although there are free programs to let your computer act like a telephone, it is more common for people to purchase specially made devices that are separate from their computers but still use their internet connections. These devises then also plug into your homes telephone wiring system. This has the advantage of allowing people to use the phone equipment they already own.
To make a call, just pick it up, dial a number and talk just like you would with a traditional phone service. It does not matter if the person receiving the call has VoIP or not, because that is taken care of by your VoIP service provider.
Compared to traditional phone services, VoIP is often more cost effective. And because it is not yet regulated like the traditional phone industry there are no unexplained taxes or mysterious service charges. Because all calls on a VoIP phone are the same, there are no long distance charges. This can make international calling especially cheep.
VoIP really is the technology the world is moving to. And with its ease of use, feature rich service, and simple set up it is easy to see why. So if you would like to save a significant amount of money each year you need VoIP.