Voice over Internet Protocol (VoIP) refers to the various methods of transmitting voice communications via protocol networks such as the Internet. Multimedia transmissions are also typically included when referring to VoIP.

VoIP systems are designed for computers and mobile phones, and can save users considerable money, especially in business applications. For example, international phone calls via VoIP are much cheaper than those made on traditional phone lines. This is because the speakers' voices are transmitted as digital data, rather than as analog audio signals, and thus do not require old-fashioned telephone wires. Thus, the calls do not incur a charge. The only cost involved is the connection fee.

VoIP can be used in any location where a computer can be accessed. It is also very easy to interconnect a large number of people on a VoIP system, which is ideal for businesses that have offices across the world or employees who work from home or are on the road a lot.

Various applications are available for VoIP systems, and the only additional items required to complete the setup are a microphone, sound card, and speakers--which many computers already have.

VoIP allows multitasking, so you can carry on a conference call while exchanging files, images, or text, or set up Webcams so everyone can see each other. VoIP generally offers the same services that traditional phone service does, including caller ID and messaging.

Next to cost, flexibility is the main advantage to VoIP. It will make everyone in your network more accessible, and reduce the need for each person to be in the same place at the same time.

Phone companies already use VoIP for many of their long-distance connections, so it is likely that you have used it without knowing it. You can usually set it up on your computer yourself, in just a few minutes.