The concept of VoIP is now rather popular. Perhaps the main reason why VoIP phones and VoIP services have gained immense popularity in a rather short span of time is the mass usage of broadband connections, not just at offices, but at homes as well. VoIP phone services make use of the Internet to make calls. The usage of a VoIP phone service is particularly cheap due to the affordability of the internet. A number of providers these days offer VoIP services. These VoIP services not only have large business organizations as their clients, but they have a rising number of home based customers as well.

When the VoIP technology is used, analog voice signals are first converted into digital packets, which are transmitted over the internet. When these digital packets reach the other end of the call, they are again converted back into analog signals. VoIP services are particularly helpful to businesses due to their costeffectiveness. All sorts of data can now easily be transferred over the internet. Conference calls, video conference calls features allow businesspersons to communicate with each other easily. Whereas, residential VoIP users generally use this service to be able to stay in touch with their friends and family that are located abroad. The features that are largely used by homebased VoIP customers include Voicemail, caller ID and call waiting.

Business owners need to make quite a lot of calls each and every day. Their business, therefore, highly depends upon the VoIP phone service. It starts from audio phone calls to video conferencing. The telephonic necessities and requirements of businesses are so vast that using a traditional phone line is simply unimaginable. The automated call handling, extension dialing, fax capabilities and conferencing can all be achieved through VoIP phone calls at extremely affordable rates. Moreover, the portability of this service gives businessmen the capability to carry their VoIP service around wherever they go. This allows an uninterrupted call setup. Additionally, business owners can make use of several other facilities such as three-way conferencing, unlimited international calls as well as call forwarding services. Commercial businesses are also offered Fax service through the internet. So, VoIP is extremely affordable when compared to a regular telephone line, which is the reason why a number of businesses have adopted this telephony option.

The setup of this system is very simple. When it comes to a residential VoIP service, an expandable and easy to upgrade system can be created almost free and users can acquire any additional services as per their choice and budget. Residential phone users usually do not require more than a single telephone line or two. Another use of the Voice over IP service for residential VoIP customers offers emergency services, which allow you to call 911. This service is generally offered free of cost.

New feature sets are now being created to offer endless possibilities, such as network presence and communication using multiple media formats. The utilization of amalgamated communications has introduced the possibility to achieve telecommuting along with the creation of virtual workplaces through hosted PBX phone system in order to augment productivity and cut down on costs. So, this is how the service of VoIP works for residential and commercial purposes.