VoIP, or Voice over Internet Protocol, is finally reaching out to thousands of average homes to offer huge savings in telephone costs. Already popular with the corporate world, VoIP, sometimes called Internet Telephony, IP telephony, or Internet phone, uses your computer’s broadband connection – not traditional phones lines – to make long distance, inter-state or local calls.

Chances are good you’re already making VoIP calls any time you place a long-distance call. Phone companies use VoIP to streamline their networks. By routing thousands of phone calls through a circuit switch and into an IP gateway, they can seriously reduce the bandwidth they’re using for the long haul. Once the call is received by a gateway on the other side of the call, it’s decompressed, reassembled and routed to a local circuit switch.