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VoIP (Voice over Internet Protocol) is simply the transmission of voice traffic over IP-based networks.

The Internet Protocol (IP) was originally designed for data networking. The success of IP in becoming a world standard for data networking has led to its adaption to voice networking.

The Economics of VoIP

VoIP has become popular largely because of the cost advantages to consumers over traditional telepone networks. Most of the people pay a flat monthly fee for local telephone calls and a per-minute charge for long-distance calls.

VoIP calls can be placed across the Internet. Most Internet connections are charged using a flat monthly fee structure.

Using the Internet connection for both data traffic and voice calls can allow consumers to get rid of one monthly payment.

In addition, VoIP plans do not charge a per-minute fee for long distance.

For International calling, the monetary savings to the consumer from switching to VoIP technology can be enormous.

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