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INTERNET PHONES: CNET EDITORS' GUIDE TO VOIP Back to intro
Internet phones
How it works

HOW IT WORKS
Many different forms of Internet telephony exist. Some systems, such as Skype, are primarily designed to be used between two computers using proprietary software. Others, such as Vonage's service, allow anyone with a broadband connection to use their existing telephone hardware or their computer, if they want, to call any other phone in the world, whether that phone is on the same service or not. Finally, businesses can install local VoIP, in which their internal phone system uses their local network. Once these calls go outside the company, they may run over either the Internet or regular phone lines, depending on what the company prefers and pays for.

The one thing all VoIP solutions have in common is that they take your voice and convert it into data packets that are then routed over the Net just like e-mail. For calls to a standard telephone, the data call obviously has to connect to the public phone network at some point; Internet phone services provide this connection seamlessly.

Internet phone service
In the most flexible form of VoIP, Internet technology replaces the connection between the telephone and the phone company. You plug an ordinary telephone into an adapter that connects to your broadband setup. Your call is routed over the Web to a VoIP service provider. This provider connects your calls to the telephone system. If the person you are calling is also a user of the same Internet calling system, the call will never touch the phone system at all.



PC-to-PC Internet phone
Free Internet phone systems such as Skype and FreeWorld Dialup can bypass the telephone system completely, allowing you to make free calls to other users within their respective networks. Some free networks have added services, such as Skype's Skypeout service, that let you call mobile and standard telephones for a metered fee.



Internal VoIP
In a medium or large office, the internal phone system can be Internet based. In this case, calls between extensions, and possibly between office buildings, run over a private data network. To reach the outside world, the company's Internet phone system can connect to the Internet, the regular phone system, or both.





VIDEO TUTORIAL 
HOW-TO VIDEO What is VoIP?
Rafe Needleman, editor, CNET.com Business Buying Advice, takes you through VoIP 101. He shows you the different flavors of Internet phones available now and looks at Voice over IP's possible future.

Different types of Internet phones
The pros and cons of Internet phones


INTERNET PHONE GLOSSARY 
CALEA - A 1994 act that requires telecommunications services to provide wiretapping access. The act specifically excludes information services, so the question is whether VoIP is a telecommunications service, and thus covered by the act, or an information service, and thus exempted. VoIP providers are receiving pressure to comply with the act.

PSTN - The network of wires, signals, and switches that lets one telephone connect to another anywhere in the world. Some VoIP services provide a gateway from the Internet to the PSTN and vice versa.

SIP - Communication protocol that operates similarly to H.323 but is less complex and more Internet- and Web-friendly. Fully modular and designed from the ground up for functioning over IP networks, it can be tailored more easily than H.323 for Internet applications. SIP and H.323 can and do coexist.

See expanded glossary

TIPS & TRICKS 
Different Internet phone plans are better for different calling patterns. Shop around.

If you move, take your Internet phone router with you. Your phone number goes with it.

Businesses: sign up for an 800 number.
It's cheap, and it makes you look more professional.

Skype will connect through firewalls, which is a big plus.


VOIP HARDWARE 
The Actiontec Phone Wizard is a must for VoIP users, especially Skype fans.

The Zyxel Prestige P-2000W phone is expensive and complicated to set up.

Netgear's Wi-Fi phone lets you make cord-free calls without touching a computer.

Turtle Beach Ear Force HPA headphones deliver a convincing surround sound experience.

Altec Lansing AHS602 headphones are built for gamers, but work for VoIP, too.




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