VoIP

From New Zealand VoIP Users Group

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VoIP, or "Voice over Internet Protocol" is a fairly generic term these days for any voice (and sometimes fax) service that uses IP to transport the conversation, rather than an analog signal which would usually be carried over copper wires (also known as POTS). It typically would utilise your internet connection to communicate with your providers network.

Examples of VoIP services include Skype, Gizmo, VFX & iTalk. VoIP is a superset that includes protocols like SIP, along with proprietary closed systems like Skype.

VoIP PBXs such as Asterisk may operate entirely on a LAN, with trunking in and out via hardware such as Digiums TDM400P or X100P and/or SIP trunks with other providers via a WAN.

VoIP is often seen as being a much lower cost alternative to traditional telephone service providers, who provide services over traditional copper wire and circuit switched calls through a local exchange. Many VoIP providers offer a free service of some kind to attract users to their pay-for services. Monthly fees for VoIP lines are typically 30% or less (indeed, right down to free) when compared to traditional landline providers in New Zealand.