Current phone networks are used for the same purpose as VOIP i.e. one person speaking to another. However PSTN networks need complex circuit switching to route calls to their destination. VoIP uses existing IP technology i.e. the internet or your network it uses Packet switching to send information - directing only the "packets" of voice data to their destination.

This requires much less infrastructure than the old telecommunications technologies used in the UK - saving a considerable amount of money for the user. For businesses who want many lines they have to have these lines installed and routed through the building. With VOIP they can often use existing network infrastructure and just increase bandwidth as they need to. You might not even need trailing wires if you are using a wireless network.

This technology has numerous advantages over the current system, mainly in cost reduction, but also in future capacity and capabilities. It would not be difficult to combine VoIP with other existing technologies such as streaming video.

Major telecom's companies often use VoIP "in the middle" of the virtual connection of your phone call, especially in long-distance or transatlantic calls. Many users are unaware that their call is converted from PSTN (Public Switched Telephone Network) to VoIP and then back to PSTN to the receiver of the call.

If you are a home user with access to a fast internet connection or a small business thinking about implementing VoIP to save costs, it is well worth trying out some of the freeware PC>PC/Landline software using a simple headset to test the quality and usability of the technology.

VoIP is undergoing rapid adoption by large companies and telecom's networks and still has some work to be done to make it accessible to all. However, if you are willing to trial the system for a few weeks you may be able to stay ahead of the pack and reduce your calling costs. PC based IP Telephony is the cheapest and easiest way to get started before moving onto a hardware based system.