When people mention voice over IP (VoIP) most are thinking about a business phone service rather than home phone. After all, businesses run data networks and that's what VoIP needs to operate. But now that the majority of homes have an Internet connection, that means they're also running a data network, just usually a smaller and simpler one than you'd find at the office. If you're careful about what you buy, you can take advantage of VoIP's key benefits, which include far more features and a much lower price tag than an old fashioned landline.
To get a better picture of the savings of VoIP for home use, here's a real life example: Long distance calls with a VoIP provider can be as little as $10 per month, if not less. Major telecommunications corporations typically charge more for such packages, even 2 or 3 times as much. If you look at this over the course of a year, that’s no small change.  
^ Jump up to: a b Mahanagar Doorsanchar Bhawan and Jawahar Lal Nehru Marg (May 2008). "Telecom Regulatory Authority of India (TRAI) Consultation paper on Issues related to Internet Telephony. Consultation Paper No. 11/2008" (PDF). New Delhi India: Telecom Regulatory Authority of India (TRAI). p. 16 (Section 2.2.1.2 PC–to–Phone Internet telephony). Archived from the original (PDF) on October 6, 2014. Retrieved September 19, 2012. An end user is allowed to make PC–to-Phone Internet Telephony calls only on PSTN/PLMN abroad.
Ooma advertises only two plans: Ooma Office and Ooma Office Pro. Ooma Office includes unlimited domestic calls, three-way calling, virtual fax machines, plus most of the industry-standard features you’d expect from a leading private branch exchange (PBX) provider. Meanwhile, Ooma Office Pro offers more premium features, including call recording and enhanced call blocking—to name a few. But with either plan, you’ll have to pay a $29.95 one-time activation fee to get your service started.
Yealink SIP-T54S is an easy-to-use Media IP Phone with a 2.8-inch color-screen and a distinctive appearance and structure. For its simplified and human-friendly design as well as user interface, it brings the IP phone and users more closer and unceasingly boosts the operating experience. With Yealink Optima HD voice technology, T54S enhances its audio quality via adding Opus audio codec, so that it delivers superb audio quality and crystal clear voice communications. Yealink SIP-T54S built with Gigabit Ethernet technology, a built-in Bluetooth and a built-in USB 2.0 port, enhancing collaboration and productivity.
If you're wondering what you get with a softphone that you won't with a standard phone handset, then that depends on the service. Business-class softphones offer all kinds of features related to online meeting collaboration, call routing, multi-line conference calling, and more. From a residential VoIP perspective, you'll most often find video conferencing (though more and more this is becoming a separate product from most providers), a voicemail-to-text converter, detailed call records, and user controls for users other than yourself. Some services also offer faxing, text chat, and call metering so you can see how much you're spending.

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In 1999, a discrete cosine transform (DCT) audio data compression algorithm called the modified discrete cosine transform (MDCT) was adopted for the Siren codec, used in the G.722.1 wideband audio coding standard.[74][75] The same year, the MDCT was adapted into the LD-MDCT speech coding algorithm, used for the AAC-LD format and intended for significantly improved audio quality in VoIP applications.[76] MDCT has since been widely used in VoIP applications, such as the G.729.1 wideband codec introduced in 2006,[77] Apple's Facetime (using AAC-LD) introduced in 2010,[78] the CELT codec introduced in 2011,[79] the Opus codec introduced in 2012,[80] and WhatsApp's voice calling feature introduced in 2015.[81]
It's also critical that you consider the impact of mergers and acquisitions on your phone system, both from your own organization's perspective as well as your VoIP provider. Because VoIP systems turn calls into data, the whole process isn't as plug-and-play standards-based as the old-fashioned analog phone system might have been. Should your company merge with or purchase another, VoIP compatibility will become another significant IT issue.
Sometimes things don’t go exactly according to plan and it’s good to have all your bases covered. Check if the company you’re signing with has a money-back guarantee and to what extent they back up their promises. You should also favor one that has multiple avenues for customer service—around the clock if possible—and read online reviews about the customer service the company provides.
The relevant EU Directive is not clearly drafted concerning obligations which can exist independently of market power (e.g., the obligation to offer access to emergency calls), and it is impossible to say definitively whether VoIP service providers of either type are bound by them. A review of the EU Directive is under way and should be complete by 2007.[citation needed]
If you’re located in one of the 21 states currently serviced by Verizon Fios—which are mostly in the northeast—you’ll have access to one of the fastest internet connections available, which is perfect for VoIP. If you’re in DSL-only country, the speed will be slower, but uptime is still guaranteed at 99.95%. Either internet option will support steady VoIP service, and if your business is more medium-sized than small, Verizon could add up to a better value in the long run (especially if you’re in Fios territory).
These include features like voicemail-to-email (and/or fax to email) which will automatically take your voicemail messages and send them as audio files to your email, making you much less likely to miss important messages. Many companies can also provide you with voicemail transcription to text, which will automatically convert the messages to text in an email, saving you even more time. 
Early providers of voice-over-IP services used business models and offered technical solutions that mirrored the architecture of the legacy telephone network. Second-generation providers, such as Skype, built closed networks for private user bases, offering the benefit of free calls and convenience while potentially charging for access to other communication networks, such as the PSTN. This limited the freedom of users to mix-and-match third-party hardware and software. Third-generation providers, such as Google Talk, adopted the concept of federated VoIP.[1] These solutions typically allow dynamic interconnection between users in any two domains of the Internet, when a user wishes to place a call.
Therefore, VoIP solutions also need to handle MNP when routing a voice call. In countries without a central database, like the UK, it might be necessary to query the GSM network about which home network a mobile phone number belongs to. As the popularity of VoIP increases in the enterprise markets because of least cost routing options, it needs to provide a certain level of reliability when handling calls.
The only additional piece of equipment that you need is an Analog Telephone Adapter (also referred to as an ATA) that allows you to connect your existing telephone to your home Internet. This equipment is typically provided on a free lease basis from the home VoIP provider that you choose, or you can use you own device if you prefer. You can also use IP phone(s) instead of using the ATA with your existing analog phones. The sound quality is better but there is more up front cost as IP phones are more expensive than the ATA devices.
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