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Voice over Internet Protocol basically streamlines analog audio signals by converting them to digital form, making them easier to transmit. A software package can set up everything you need to make phone calls via VoIP providers to another person with the same system. Once the system is set up, the calls are free, although to a land line there would be a charge involved. The benefits are obvious in economics alone. Overseas call charges could be a thing of the past and many hours might be spent making business and personal calls without any cost to the caller.

For commercial companies, the savings made in telephone charges are enormous. Over the course of the financial year, many thousands of dollars might be clawed back to invest in more profitable enterprises, rather than pouring money down the telephone lines. The VoIP facility is anticipated to outdated land line long distance calling, which will become obsolete as broadband becomes more popular, making VoIP more commonplace. There's no per minute charges and no set-up costs, plus no charges for premium call times: a monthly fee allows free use via your computer to call just about anywhere that has VoIP installed.

To make a call, you simply dial as usual, via a handset or a computer microphone. The call is answered, you speak, you say goodbye. Painless! VoIP also offers call features such as caller ID and forwarding calls to voice mail. Also, it offers different ring tones to distinguish call tracing or reminder calls. You can manage the features on your VoIP via the Internet and tailor services you would normally rely on your provider to change while paying for the privilege. VoIP gives you more control over how you make your calls and what features to utilize.

VoIP does not disable your computer in any way while it is in use and many VoIP providers allow you to trial the service before signing up. The sound quality over a VoIP service might not be quite what you have come to expect but if you make a small investment in a headset, sound can be improved immeasurably and an added bonus is that your hands will be free to use your keyboard while on a call.

The answer to the question: do I need it? - is actually yes. Although you can use a conventional phone system, VoIP certainly helps you to run your telephone requirements significantly cheaper and provides greater freedom when it comes to additional features.