Voice over Internet Protocol (VoIP) has quickly emerged as a family of Internet technologies that can deliver voice communications and multimedia sessions in a more efficient manner. With VoIP, voice, fax, SMS and other voice messaging applications are transported through the Internet rather than the public switched telephone network. The three types of VoIP tools that are commonly used include IP Phones, Software VoIP and Mobile and Integrated VoIP.

VoIP equipment refers to all the tangible gear related to VoIP from phones to systems to PBX (News - Alert) hardware to adapters to gateways to headsets.

Some of VoIP equipment has more comprehensive offerings than others, particularly when it comes to VoIP phones. Some VoIP phone systems boast features such as business-class voicemail, desktop video conferencing, small business phone systems and unlimited calling while others offer virtual numbers, call hold, enhanced 911, directory assistance and auto callback.

All the different parts of VoIP work together to offer a multitude of benefits – most notably cost savings. All that is needed is a fast Internet connection and the proper VoIP equipment and VoIP users can enjoy making PC to PC phone calls to anywhere around the world for free. Even calls from a PC to a phone are cheaper than a regular phone service. VoIP equipment also allows users to benefit from a small monthly fee in exchange for unlimited calls within a certain geographic area.

Moreover, VoIP equipment boasts portability, meaning that users can make and receive phone calls wherever there is a broadband connection by signing into their VoIP account. In this sense, VoIP becomes as fast and as easy as email and traveling becomes less of a hassle. With VoIP equipment, a user can make a call thousands of miles away and the connectivity and cost will be no different than if the user was calling his/her next door neighbor.

While there are obvious benefits to using VoIP equipment, some analysts have pointed out some disadvantages as well, particularly the fact that there is no VoIP service during a power outage and that emergency calls cannot be traced.

To the former point, while a regular phone is kept in service by the current supplied through the phone line, this is not possible with VoIP phones so when the power goes out there is no service. In addition, while standard phone systems can trace a location during a 911 call, VoIP is a transfer of data between two IP addresses and not two physical addresses so there is no way to determine from where the call originated.