Voice over Internet Protocol, also called VoIP, IP Telephony, Internet telephony, Broadband telephony, Broadband Phone and Voice over Broadband is the routing of voice conversations over the Internet or through any other IP-based network.

Some cost savings are due to utilizing a single network to carry voice and data, especially where users have existing underutilized network capacity that can carry VoIP at no additional cost. VoIP to VoIP phone calls are sometimes free, while VoIP to public switched telephone networks may have traditional costs.

Traditional phone calls work by allocating an entire phone line to each call. With VoIP, voice data is compressed and transmitted over a computer network. This means VoIP uses substantially less bandwidth than a traditional telephone call and is consequently more cost effective. There are however several other benefits to using this technology.

Simplified infrastructure.
With VoIP on your network you no longer need separate cabling for your telephone system.
   
Scalabable.
Traditional PABX (Private Automatic Branch Exchange) based phone systems come in many size ranges and it may be necessary periodically to scrap existing systems and replace hardware; this is not the case with VoIP systems.
   
Reduce operating costs.
Because a VoIP exchange is based on software rather than hardware, it is easier to alter and maintain.
   
Improve productivity.
VoIP treats voice as if it were any other kind of data, so users can attach documents to voice messages or participate in virtual meetings using shared data and even videoconferencing.
   
Flexibility.
A Virtual Private Network (VPN) is an allocated amount of bandwidth on the public Internet where public access is prevented through encryption. If your company has its own VPN and combines it with VoIP, you can set up a fully functioning office anywhere there is a broadband connection.