Internet Protocol (IP) telephony (also known as Internet
telephony) is a service based on Voice over IP (VoIP), a disruptive technology
that is rapidly gaining ground against traditional telephone network
technologies. In Japan and South Korea up
to 10% of subscribers, as of January 2005, have switched to this digital
telephone service. A
January 2005 Newsweek article suggested that Internet
telephony may be "the next big thing."
As of 2006 many VoIP companies offer service to consumers
and businesses.
IP telephony uses a broadband Internet connection to
transmit conversations as data packets. In addition to replacing POTS(plain old
telephone service), IP telephony is also competing with mobile phone networks
by offering free or lower cost connections via WiFi hotspots. VoIP is also used
on private wireless networks which may or may not have a connection to the
outside telephone network.
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