What Is a VoIP Phone System?

VoIP, or voice over Internet protocol, allows users to make phone calls using a broadband Internet connection. Users talk via a computer or a traditional phone, and there are many different VoIP service providers.

How VoIP Service Works

VoIP phone services allow users to make phone calls from a computer, a VoIP phone,or a regular phone with a VoIP adapter to another phone or computer. The phone call and your voice are turned into digital signals that are sent through the Internet. If calling a regular phone, they are turned into a regular phone signal on the other end.

VoIP Equipment

VoIP service requires high-speed Internet and a computer, VoIP adapter or a VoIP-enabled telephone. Any computer with a VoIP provider installed needs a microphone. The VoIP phones and adapters plug into a user's Internet connection and work like a normal phone. Each VoIP program is different, as some (like Skype) will only work on a computer, and some (like Vonage) will only work on phones.

VoIP Service Providers

VoIP service is available via computer or a telephone, but not all VoIP services work with both technologies. Service is available through a number of different providers, and prices vary by provider. Fax service is even offered by some programs, and video chat is also available on some VoIP computer programs.

For a list of providers, broken in to business and home categories, and also divided by service area, check VoIP-Info.org at http://www.voip-info.org/wiki/view/VOIP+Service+Providers.

The Pros and Cons

With VoIP phone service, calls to other users of the same VoIP service are often free. Additionally, some VoIP services offer a flat fee for long-distance calling, instead of charging per minute or per call, like regular phone companies, so VoIP service is often cheaper than traditional phone service. Users may also be able to make calls with multiple people using VoIP services, and they can still use their computers and Internet while using the phone. VoIP service is sometimes portable, too -- it can be used wherever a broadband Internet connection is available, but changing locations may impact a user's ability to receive 911 assistance.

When you choose a VoIP service, choose carefully because some programs only allow users to call other users of that program. Additionally, VoIP providers sometimes do not offer directory assistance programs. Because VoIP services use the Internet, they may not work during power outages, like a normal phone would. 911 calls can also be tricky on a VoIP provider because they do not connect directly to emergency services. The FCC has regulations in place, however, to make sure emergency response is just as quick for those with VoIP as for those with a regular phone.

FCC Regulations

Any interconnected VoIP provider -- that is, one whose users can make and receive calls from the analog telephone network -- must comply with the Communications Assistance for Law Enforcement Act of 1994 (CALEA). The FCC also requires providers to contribute to the Universal Service Fund, which according to their website, "supports communication services in high-cost areas and for income-eligible telephone subscribers."

Interconnected VoIP services also must abide by rules for 911 calls. For example, by FCC rules, VoIP providers must provide 911 service to all customers and make sure emergency services will be able to trace any VoIP call's location, just as they can with calls from regular phones.