IP telephony

Hardware-based IP phone

Internet Protocol (IP) telephony (also known as Voice over Internet Protocol, VoIP), is a disruptive technology that is rapidly gaining ground against traditional telephone network technologies. As of January 2005, up to 10% of telephone subscribers in Japan and South Korea have switched to this digital telephone service. A January 2005 Newsweek article suggested that Internet telephony may be "the next big thing."[1] As of 2006 many VoIP companies offer service to consumers and businesses.

IP telephony uses an Internet connection and hardware IP Phones or softphones installed on personal computers to transmit conversations encoded as data packets. In addition to replacing POTS (plain old telephone service), IP telephony services are also competing with mobile phone services by offering free or lower cost connections via WiFi hotspots. VoIP is also used on private networks which may or may not have a connection to the global telephone network.