What is VoIP

Voice over Internet Protocol (VoIP) is a dynamic means of communication based upon the placing and receiving of information over broadband internet connections. There are several applications of VoIP, not the least of which is the transmission of phone calls through the means of a Private Branch Exchange (PBX) which allows for the recording of messages and the routing of calls in addition to a number of other features. Such calls can be placed with a mobile phone or a fixed line, and are sent over computer networks.
Pricing
A number of VoIP providers and plans allow for free calls between callers who each utilize VoIP technology, even in international settings. Typically, additional charges accumulate when a VoIP user calls someone without VoIP capabilities. There is a fluctuation in prices and policy depending on service providers, as there is in a in reliability and quality of the connection.
Hosted Versus On-Premise Service
VoIP service is either hosted or on-premise. With hosted service, the vendor stores, maintains, upgrades and operates the hardware and server equipment from a remote location that enables the technology to be used, and which consumers generally access by paying a relatively low, monthly fee. On-premise service requires an enterprise to purchase all hardware and software necessary to operate the server, and includes all applicable installation, maintenance and upgrades. There is a general perception that the on-premise variety offers for greater flexibility and scalability than the hosted format, although the former requires significant upfront capital.
Software Versus Hardware Based Products
Software based VoIP products require the installation of software into a computer, which can be used to transmit calls after additional equipment (including speakers, microphones, and headsets) is procured and the computer and the software is operating. Hardware based VoIP products necessitate users to purchase or lease IP or VoIP phones, which can be plugged into the internet port for calls to be transmitted. Alternatively, hardware based products can also be used with the procurement of an Analog Telephone Adaptor, which can be placed into an internet port and used with traditional phones.
Additional VoIP Uses
In addition to the transmission of phone calls and messages with a variety of means enabled by numerous features, additional uses of VoIP include the transmission of video calls (which may be done with computers or handsets), instant messaging, and the sharing of files. The type and size of files shared is generally restricted by the computing capabilities of each user sharing and accessing the files.