Companies providing VoIP service are commonly referred to as providers, and protocols which are used to carry voice signals over the IP network are commonly referred to as Voice over IP or VoIP protocols. They may be viewed as commercial realizations of the experimental Network Voice Protocol (1973) invented for the ARPANET providers. Some cost savings are due to utilizing a single network - see attached image - to carry voice and data, especially where users have existing underutilized network capacity that can carry VoIP at no additional cost. VoIP to VoIP phone calls are sometimes free, while VoIP to public switched telephone networks, PSTN, may have a cost that's borne by the VoIP user.

There are two types of PSTN to VoIP services: DID (Direct Inward Dialing) and access numbers. DID will connect the caller directly to the VoIP user while access numbers require the caller to input the extension number of the VoIP user. Access numbers are usually charged as a local call to the caller and free to the VoIP user while DID usually has a monthly fee.[1] There are also DIDs that are free to the VoIP user but chargeable to the caller.

Click-to-call is a service which lets users click a button and immediately speak with a customer service representative. The call can either be carried over VoIP, or the customer may request an immediate call back by entering their phone number. One significant benefit to click-to-call providers is that it allows companies to monitor when online visitors change from the website to a phone sales channel

How VoIP / Internet Voice Works

VoIP services convert your voice into a digital signal that travels over the Internet. If you are calling a regular phone number, the signal is converted to a regular telephone signal before it reaches the destination. VoIP can allow you to make a call directly from a computer, a special VoIP phone, or a traditional phone connected to a special adapter. In addition, wireless "hot spots" in locations such as airports, parks, and cafes allow you to connect to the Internet and may enable you to use VoIP service wirelessly.

Why VoIP Now?

The concept isn't actually that new: VoIP has been touted as a long-distance killer since the later 1990s, when goofy PC products like Internet Phone were starting to show up. But the promise of Voice over IP was lost in the shuffle of buggy applications and the slow-to-start broadband revolution. Without broadband connections, VoIP really isn't worthwhile. So early adopters of personal VoIP software like CUSeeMe and NetMeeting were sometimes frustrated by bad sound quality, and the first generation of VoIP products ultimately failed in the marketplace.