Voice-over-Internet Protocol (VoIP)

AAA

DEFINITION of 'Voice-over-Internet Protocol (VoIP)'

A technology that allows users to communicate through an Internet connection rather than an analog connection. Voice-over-Internet Protocol converts the voice signal associated with traditional phone technology into a digital signal.

INVESTOPEDIA EXPLAINS 'Voice-over-Internet Protocol (VoIP)'

The adoption of VoIP technology has affected the telecommunications industry by reducing the demand for traditional phone services. Its popularity relates to the wider adoption and availability of broadband Internet access. VoIP has been increasingly used by businesses seeking to reduce the cost of their telephone service.

Depending on the VoIP configuration, phone calls can be made using a traditional phone with a special adaptor or through a computer. Because VoIP technology uses network routers, rather than the network configuration of legacy phone systems, the reliability of VoIP service can be negatively affected by high volumes of Internet traffic.  

RELATED TERMS
  1. ISP (Internet Service Provider)

    A company that provides consumers, businesses, and other Internet ...
  2. Telecom ETF

    An exchange-traded fund that invests in companies with a significant ...
  3. Internet Bubble

    A rapid rise in equity markets caused by speculation into online-based ...
  4. Society for Worldwide Interbank ...

    A member-owned cooperative that provides safe and secure financial ...
  5. Telecommunications Consumer Protection ...

    A U.S. federal law created in response to increased consumer ...
  6. Peer-To-Peer (Virtual Currency)

    The exchange or sharing of information, data, or assets between ...
Related Articles
  1. Personal Finance

    How To Pick The Best Telecom Stocks

    This ever-changing industry can leave investors scratching their heads. Find out which metrics matter.
  2. Entrepreneurship

    From The Printing Press To The Internet

    Find out how this invention contributed to the development and evolution of the U.S. economy.
  3. Investing

    Sina Weibo and Twitter: What's The Difference?

    Sina Weibo is China's version of Twitter, but how do the Chinese Twitter and actual Twitter stack up against each other?
  4. Stock Analysis

    What’s The Highest Dividend-Paying Tech Stock?

    Technology stocks tended not to pay dividends, preferring to reinvest available capital back into their respective businesses to accelerate their growth.
  5. Investing

    Is There An Upside For Isis Pharmaceutical Shares?

    Shareholders in biotechnology company Isis Pharmaceuticals have endured a wild, but ultimately enjoyable, ride since late 2012.
  6. Investing

    What Are The Prospects For Plug’s Technology?

    Plug Power's fuel-cell technology has huge promise, but it hasn't paid off yet. Few stocks have seen the volatility that it has experienced during the past
  7. Investing

    Will Intuitive Surgical Shares Benefit Investors?

    Earlier this month, Intuitive Surgical authorized to repurchase up to $1 billion of its common stock. But will it actually benefit investors?
  8. Investing News

    #1 Country For Tech Start-Ups: U.S.A

    U.S. tech companies are receiving increased levels of investor funding. In 2014, the number of mega-deals for such ventures doubled over the previous year.
  9. Investing

    Windstream's Strategy For Dividend Investors

    Windstream Holdings has been among the top dividend-paying stocks in the market, with double-digit percentage yields that have stood the test of time.
  10. Investing

    Intel’s Strategy To Gain Shares In The Market

    While Intel's biggest revenue and profit driver is its PC processor division, the company's data center group is probably its most impressive business now.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center