How is this useful? VoIP can turn a standard Internet connection into a way to place free phone calls. The practical upshot of this is that by using some of the free VoIP software that is available to make Internet phone calls, you're bypassing the phone company (and its charges) entirely.

VoIP is a revolutionary technology that has the potential to completely rework the world's phone systems. VoIP providers like Vonage have already been around for a while and are growing steadily. Major carriers like AT&T are already setting up VoIP calling plans in several markets around the United States, and the FCC is looking seriously at the potential ramifications of VoIP service.

Above all else, VoIP is basically a clever "reinvention of the wheel." In this article, we'll explore the principles behind VoIP, its applications and the potential of this emerging technology, which will more than likely one day replace the traditional phone system entirely.

The interesting thing about VoIP is that there is not just one way to place a call. There are three different "flavors" of VoIP service in common use today:

• ATA -- The simplest and most common way is through the use of a device called an ATA (analog telephone adaptor). The ATA allows you to connect a standard phone to your computer or your Internet connection for use with VoIP. The ATA is an analog-to-digital converter. It takes the analog signal from your traditional phone and converts it into digital data for transmission over the Internet. Providers like Vonage and AT&T CallVantage are bundling ATAs free with their service. You simply crack the ATA out of the box, plug the cable from your phone that would normally go in the wall socket into the ATA, and you're ready to make VoIP calls. Some ATAs may ship with additional software that is loaded onto the host computer to configure it; but in any case, it's a very straightforward setup.

   

• IP Phones -- These specialized phones look just like normal phones with a handset, cradle and buttons. But instead of having the standard RJ-11 phone connectors, IP phones have an RJ-45 Ethernet connector. IP phones connect directly to your router and have all the hardware and software necessary right onboard to handle the IP call. Wi-Fi phones allow subscribing callers to make VoIP calls from any Wi-Fi hot spot.

   

• Computer-to-computer -- This is certainly the easiest way to use VoIP. You don't even have to pay for long-distance calls. There are several companies offering free or very low-cost software that you can use for this type of VoIP. All you need is the software, a microphone, speakers, a sound card and an Internet connection, preferably a fast one like you would get through a cable or DSL modem. Except for your normal monthly ISP fee, there is usually no charge for computer-to-computer calls, no matter the distance.

If you're interested in trying VoIP, then you should check out some of the free VoIP software available on the Internet. You should be able to download and set it up in about three to five minutes. Get a friend to download the software, too, and you can start tinkering with VoIP to get a feel for how it works.

Next, we'll look at exactly how VoIP is used.

Using VoIP

Although it will take some time, you can be sure that eventually all of the current circuit-switched networks will be replaced with packet-switching technology (more on packet switching and circuit switching later). IP telephony just makes sense, in terms of both economics and infrastructure requirements. More and more businesses are installing VoIP systems, and the technology will continue to grow in popularity as it makes its way into our homes. Perhaps the biggest draws to VoIP for the home users that are making the switch are price and flexibility.

With VoIP, you can make a call from anywhere you have broadband connectivity. Since the IP phones or ATAs broadcast their info over the Internet, they can be administered by the provider anywhere there's a connection. So business travelers can take their phones or ATAs with them on trips and always have access to their home phone. Another alternative is the softphone. A softphone is client software that loads the VoIP service onto your desktop or laptop. The Vonage softphone has an interface on your screen that looks like a traditional telephone. As long as you have a headset/microphone, you can place calls from your laptop anywhere in the broadband-connected world.

Most VoIP companies are offering minute-rate plans structured like cell phone bills for as little as $30 per month. On the higher end, some offer unlimited plans for $79. With the elimination of unregulated charges and the suite of free features that are included with these plans, it can be quite a savings.

Most VoIP companies provide the features that normal phone companies charge extra for when they are added to your service plan. VoIP includes:

• Caller ID
• Call waiting
• Call transfer
• Repeat dial
• Return call
• Three-way calling

• Forward the call to a particular number
• Send the call directly to voice mail
• Give the caller a busy signal
• Play a "not-in-service" message
• Send the caller to a funny rejection hotline

Advantages of Using VoIP

Let's say that you and your friend both have service through a VoIP provider. You both have your analog phones hooked up to the service-provided ATAs. Let's take another look at that typical telephone call, but this time using VoIP over a packet-switched network:

1. You pick up the receiver, which sends a signal to the ATA.
2. The ATA receives the signal and sends a dial tone. This lets you know that you have a connection to the Internet.
3. You dial the phone number of the party you wish to talk to. The tones are converted by the ATA into digital data and temporarily stored.
4. The phone number data is sent in the form of a request to your VoIP company's call processor. The call processor checks it to ensure that it's in a valid format.
5. The call processor determines to whom to map the phone number. In mapping, the phone number is translated to an IP address (more on this later). The soft switch connects the two devices on either end of the call. On the other end, a signal is sent to your friend's ATA, telling it to ask the connected phone to ring.
6. Once your friend picks up the phone, a session is established between your computer and your friend's computer. This means that each system knows to expect packets of data from the other system. In the middle, the normal Internet infrastructure handles the call as if it were e-mail or a Web page. Each system must use the same protocol to communicate. The systems implement two channels, one for each direction, as part of the session.
7. You talk for a period of time. During the conversation, your system and your friend's system transmit packets back and forth when there is data to be sent. The ATAs at each end translate these packets as they are received and convert them to the analog audio signal that you hear. Your ATA also keeps the circuit open between itself and your analog phone while it forwards packets to and from the IP host at the other end.
8. You finish talking and hang up the receiver.
9. When you hang up, the circuit is closed between your phone and the ATA.
10. The ATA sends a signal to the soft switch connecting the call, terminating the session.