VoIP is the latest telephone technology that is poised to work wonders to the global communication industry. To be in keeping with times, it is necessary for you to understand the VoIP technology and find out why it is going to displace the traditional telephone system. VoIP is an acronym for Voice over Internet Protocol, or simply stated, it is phone service over the Internet.

There are, a lot in common between the traditional telephony and VoIP system there are some decided advantages that VOIP technology offers. VOIP will facilitate local, long distance and international telephone calls over your high-speed internet connection at negligible rates resulting in a huge savings in your telephone bills. The technology is changing rapidly and there are a lot of new features that are getting added to this new technology.

The main principle of VOIP technology is to transform the voice into digital signals which will be forwarded to the broadband internet. This net connection will then re-convert the digital signals into voice before reaching to the listener at the other end.

Experts recommend the use of broadband bandwidth of 90 Kbps as VOIP telephone calls utilize 90 Kbps of bandwidth for high sound quality. But if broadband net service provider is unable to provide this much of bandwidth then most of the VOIP service providers provide an option of lowering down the voice quality by lowering down the bandwidth to approximately 60 Kbps or 30 Kbps.

VoIP provides a host of features that individuals and businesses will find highly helpful. Few of the attractive VOIP telephone system features are - voice mail, three-way conference, speed dialing, call forwarding, simultaneous ring, call waiting, caller ID, call return, caller ID block, anonymous call rejection, do not disturb feature, and last number redial.

The only thing required to VoIp facility is a broadband connection and a reliable service provider. Please know that the VoIP system is both portable and flexible. If you use VOIP through a PC-to-PC connection, then your calls are free to any part of the world, provided the receiver at the other end also has VOIP. Further, most VOIP providers offer unlimited calling plans for calls made within a certain area, for single monthly fee. Most VOIP service providers also offer extra premium services such as caller id, without additional charges.

Though the use of VoIP service is very advantageous, you should always bear in mind that there is a back up in case of break down of power supply and internet connection as this break down will stop the functioning of VoIP phones. Recently, there was a press release that stated "A technical review conducted by the British government has found several security flaws in products that use VOIP and text messaging, including those from Microsoft and Cisco Systems."

There is certainly no denying that VOIP still has some drawbacks to be removed. You may exercise your discretion whether to go in for VOIP technology now or wait for some more time till these limitations are removed. It is reasonably expected that sooner than later, the research wing of the company will set right these shortcomings and perfect the VOIP technology.