Voice Over Internet Protocol.  That's a fancy name for a new telephone option that offers you a simply marvelous bottom line:  significant savings. With a VoIP telephone system, you can talk to your aunt in Denmark for the same amount of money that it would cost to speak with your neighbor across the street.  Imagine, no more expensive long distance phone calls!  With so many VoIP providers offering unlimited long distance at one low rate, those huge phone bills really are a thing of the past.

VoIP service, which some refer to as IP telephony, works by sending telephone calls over the Internet.  The VoIP technology converts the sound waves of your voice (which are existing analog signals) into digital signals, and then sends them across the Internet. The digital signals travel through the network until they reach the person you're talking to.  At that point, the digital signals are converted back into audio signals, allowing the receiver to hear your voice.

With VoIP service, it's possible for several people to hold conversations simultaneously over one line; that's something that could never happen with a conventional phone.  This multi-caller capability is made possible because the audio signals are digitized and compressed very highly. The data is then sent in batches, or packets, over Internet.

The biggest advantage to VoIP technology is twofold:  the required resources are utilized more efficiently, and that adds up to substantial savings for end users.  Think of it this way: it costs you no more to email your Danish aunt than it does to email your neighbor.  With VoIP, your telephone calls receive the same unbiased treatment.

The low cost is just one advantage of calling with a VoIP system.  Another plus is that since it transmits digital data, you're able to transmit other files, like video and data, on the same line you use to make phone calls.  By using just one data network for all of your communication requirements, it's possible to substantially decrease your overall costs.   Further, to use traditional landline phone service, you need to subscribe with a provider in your immediate area.  With VoIP service, you can choose any provider from anywhere in the world.   And with a world of options to choose from, you can virtually shop the world to find the best service at the best rates.

Once you've decided to make the switch to VoIP service, you'll need to start shopping around.  New providers come available on the market every day, but they're not all best for you. Ask about, and verify, the following points when you're spotting the best VoIP service to meet your needs:

Calling Charges
VoIP is a hot new service, and the market is teeming with options.  This competitive market has greatly reduced the rates, and providers are competing to offer the lowest prices.  Of course, this competitive climate is working very much to your advantage, and you are free to shop around for the subscription plan that serves your needs at the best possible price.  For example, if you place a lot of calls to certain parts of the country or during particular time periods, ask the service provider if they offer a flexible plan to provide you with discounts to that area or during those times.

Long Distance Savings
Smart VoIP service providers offer competitive rates for long distance calls.  If you have friends or family members in other countries, take the time to find a VoIP service provider that offers reduced long distance rates.  Some providers even offer unlimited calls to certain countries, so shop around.

Phone Numbers
If you're considering switching from your traditional landline to a VoIP service, but you don't want to go through the hassle of contacting all of your friends, family and business associates with your new number, you might be in luck.  Some VoIP providers allow you to keep your existing phone number when you switch to their service.  Others will require that you take a new number.  If keeping your existing number is important to you for recall and identification purposes, it is definitely to your advantage to look for this option with VoIP service providers.  In doing so, don't forget to confirm that your subscription allows access to emergency services including 911.

Extra Features
VoIP telephone systems provide all of the same calling features as your traditional landline service, as well as some exciting new ones.  Video conferencing is one such service, and call waiting, call routing and three way calling are also common features.  More often than not, these are included in the basic subscription package.  Again, some providers will not offer these services, so shop around.  Have a clear idea of what features you want in your phone package, and confirm that the service provider you choose will include what you want in the plan you choose.  Watch for extra charges, too.  You shouldn't have to pay extra fees for extra services, but be on the lookout for VoIP providers that try to charge hidden fees.

Contracts and Guarantees
Read the fine print before you sign a contract.  Make sure that you're not committing to a long-term contract that you'll be tied to, even if the quality is not what you expected.  Ensure that customer support is available with real people on hand to take your calls.  Smart VoIP providers realize that many consumers are hesitant to try this new technology, so they're offering free trial periods and money-back guarantees.  Trial periods of two to four weeks are common; so don't be afraid to ask.

These are just a few of the points that you need to keep in mind when spotting the best VoIP service to meet your needs.  Make a list of all the features and benefits that are important to you, and then compare packages to find the provider that best addresses your needs, at cost you can manage.