First of all, what the blazes is VOIP? other than a funny sounding word, it’s an acronym that stands for Voice Over Internet Protocol, an alternate method of voice communication similar in function to traditional phones, but instead of using normal telephone lines, uses an internet connection to allow for audio communications.

There are several levels of operation with this type of audio communication. In the first and most basic one, you have two computers, both with a high speed internet connection, and a program that handles the communication between them. Skype is one of the main and most known programs to do that. Others exist as well such as ooVoo, and it’s even embedded in some IM (Instant Messaging) programs. One additional advantage of these programs, even at this level is that they also allow for videoconferencing, so you can have audio and video, and in some cases, even multiple videoconferencing with several people at the same time. This of course requires a higher speed connection than what it requires to just make plain audio calls.

The next level is where you are able to  actually also call a normal landline or cell phone from your computer. For a small fee, Skype allows you to do that. You cannot however receive phone calls on your computer, you can only make outgoing calls. This setup is good when you have a phone that you use to receive phone calls and you want to keep it free for incoming calls.

The last level is where you can also make outgoing calls from your computer, or sometimes just through a device hooked to your internet connection. Vonage is an example of a VOIP service that doesn’t depend on a computer to operate, just needs the small device and a phone. Others, like MagicJack, require a phone connected to your computer. If you use Skype at this level, you can use your computer without any other devices (if your computer has a microphone) or simply by plugging a headset to your computer.

Cost is a factor when deciding which of these to choose. As far as I know, MagicJack offers the best bang for the buck.  $39.95 plus shipping and handling includes the phone to connect to your computer and one year of free local and long distance calling to the United States, Canada, Puerto Rico and the US Virgin Islands. You can purchase an additional year of service for $19.95. While Skype might offer a similar cost plan, their “unlimited” calling is not really unlimited and there is a ceiling as to how many phone calls you can make in a day.

This emerging method of telecommunication is here to stay and will only get bigger. More and more people are considering as an alternative to traditional phone services and migrating to it.