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Stands for Voice Over Internet Protocol, and is often pronounced voip. VoIP is basically a telephone connection over the Internet. The data is sent digitally, using the Internet Protocol (IP) instead of analog telephone lines. This allows people to talk to one another long-distance and around the world without having to pay long distance or international phone charges.
In order to use VoIP, you need a computer, an Internet connection, and VoIP software. You also need either a microphone, analog telephone adapter, or VoIP telephone. Many VoIP programs allow you to use a basic microphone and speaker setup. Others requires VoIP phones, which are like regular telephone handsets, but typically connect to your computer via USB. Analog telephone adapters allow you to use regular phones with your computer. IP phones are another option that connect directly to a router via Ethernet or wirelessly. These phones have all the necessary software for VoIP built in and therefore do not require a computer.
The largest provider of VoIP services is Vonage, but there are several other companies that offer similar services. While Vonage charges a monthly service fee, programs like Skype and PeerMe allow users to connect to each other and talk for free. However, these free services may offer fewer connections, lower audio quality, and may be less reliable than paid services like Vonage.
VoIP is also referred to as IP telephony, Internet telephony, and digital phone.