This article contains the excellent information about the Voice Over IP Protocol.

Voice over Internet Protocol (VoIP) technology is the wave of the future in terms of telephone communication via the Internet. VoIP has several advantages over circuit-switched technology used by local phone companies. Circuit-switched technology uses a 'permanent' connection between the caller and callee, which requires a huge amount of bandwidth for each call.

This type of technology can only carry certain types of calls, such as telephone to telephone. Also, the hardware circuit-switched networks need to run effectively are extremely expensive, mostly because voice and data services must be supported on different wires. Therefore, each service needs separate hardware to accommodate the voice and data types of traffic. Needless to say, your local phone company then passes the costs of building and maintaining a circuit-switched network to the you, the consumer. Unforturnately, this equals higher rates for your telephone services.

VoIP - How Does it Work?

VoIP technology is when phone calls travel networks using Internet Protocol (IP). What this means is that the calls are passed through the Internet or privately managed data networks that are using IP to send the calls from one location to the other. So whether the call is passed through the Internet or data networks, the voice stream is broken down into packets, compressed, and sent toward their final destination by several different routes.

This is where circuit-switch technology and IP technology differ, in that circuit-switched technology uses a 'permanent' connection for the entire phone call. Once the call reaches the callee, the voice stream packets are reassembled, decompressed, and switched back into a voice stream by several hardware and software elements, depending on the call's final destination. The type of software and hardware needed to start and end a phone call is determined by where the call originated, such as a PC, phone, or an Integrated Access Device (IAD) and whether the call is going to be completed on a PC, telephone, or IAD.

ADVANTAGES OF VoIP

The following is a list of the numerous advantages for using VoIP:

Voice and data can be sent over the same lines.

8 time the number of phone calls can be placed on those lines than in the circuit-switched environment.

Quality of sound is excellent.

Lower operating costs due to reduced hardware requirements and a more efficient network infrastructure.

Lower cost structures enable lower rates than the traditional telephone companies.

Use of different devices to talk to one another.