One of the major advantages of VoIP is the low cost. If you have a broadband Internet connection (DSL or cable) you can make PC-to-PC phone calls anywhere in the world for free. If you wish to make a PC-to-phone connection there is usually a charge for this, but at a much cheaper rate than your regular telephone service would charge you.

The reason for the cheaper rates is that VoIP Service providers do not have the extra burden and costs to use and maintain the exiting telephone networks; they use a network that already exists – the internet. Also, VoIP service providers are not classified as phone companies by the government. This saves them from paying extra taxes and fees that regular phone companies are required to pay.

All this cost saving is passed onto the end consumer. It is estimated that the cost savings made from using VoIP range between 30%-90% cheaper than your regular phone service.

Phone-to-phone VoIP is also portable. When you sign up with a VoIP service provider, the Internet phone or adaptor that is used with that service is assigned a unique phone number. This number will remain valid even if your VoIP service is in New York and you are connected to the Internet in London. An Internet phone is small and light enough to travel with. You can simply plug it into a broadband connection anywhere in the world and will be able to make and receive calls just as though you were in your own home or office.

Some VoIP providers also allow you to have a Virtual phone number – you can assign yourself with a telephone number from any available area code. This allows you to receive calls from people outside your local calling area with the caller paying only for a local call.

There are many other features that make VoIP attractive. Call forwarding, call waiting, voicemail, caller ID and three-way (conference) calling are some of the many services that are usually provided at no extra charge. You can also send data such as pictures and documents at the same time you are talking on the phone.