If you've never heard of VoIP, get ready to change the way you think about Local and long-distance phone calls. VoIP, or Voice over Internet Protocol, is a method for taking analog audio signals, like the kind you hear when you talk on the phone, and turning them into digital data that can be transmitted over the Internet.

How is this useful? VoIP can turn a standard Internet connection into a way to place phone calls. By using VoIP software to make Internet phone calls, you are bypassing the phone company (and its charges) entirely.

VoIP is a revolutionary technology that has the potential to completely rework the world's phone systems. Above all else, VoIP is basically a clever "reinvention of the wheel." the potential of this emerging technology, will more than likely one day replace the traditional phone system entirely.

The interesting thing about VoIP is that there is not just one way to place a call. There are different "flavors" of VoIP service in common use today:

• IP Phones - These specialized phones look just like normal phones with a handset, cradle and buttons. But instead of having the standard RJ-11 phone connectors, IP phones have an RJ-45 Ethernet connector. IP phones connect directly to your router and have all the hardware and software necessary right onboard to handle the IP call. Soon, Wi-Fi IP phones will be available, allowing subscribing callers to make VoIP calls from any Wi-Fi hot spot.
• Computer-to-Computer - This is certainly the easiest way to use VoIP. You don't even have to pay for long-distance calls. All you need is the software, a microphone, speakers, a sound card and an Internet connection, preferably a fast one like you would get through a cable or DSL modem. Except for your normal monthly ISP fee, there is usually no charge for computer-to-computer calls, no matter the distance.

More and more businesses are installing VoIP systems, and the technology will continue to grow in popularity as it makes its way into our homes.

The Forrester Research Group predicts that nearly 5 million U.S. households will have VoIP phone service by the end of 2006. Perhaps the biggest draws to VoIP for the home and business users that are making the switch are price and flexibility.

With VoIP, you can make a call from anywhere you have broadband connectivity. Since the IP phones broadcast their info over the Internet, they can be administered by the provider anywhere there is a connection. So business travelers can take their phones with them on trips and always have access to their office phone. Another alternative is the softphone. A softphone is client software that loads the VoIP service onto your desktop or laptop. The softphone has an interface on your screen that looks like a traditional telephone. As long as you have a headset/microphone, you can place calls from your laptop anywhere in the broadband-connected world.