Voice-over-Internet Protocol (VoIP)


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.

BREAKING DOWN '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.  

  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. Quick Response (QR) Code

    A type of bar code which can be read by a digital device, and ...
Related Articles
  1. Stock Analysis

    The 5 Biggest Canadian Software Companies

    Explore information on the top revenue-generating software companies headquartered in Canada, which include some of the largest Canadian businesses overall.
  2. Personal Finance

    How To Pick The Best Telecom Stocks

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

    From The Printing Press To The Internet

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

    What's Behind the Decline in Productivity Numbers? 

    There are several theories and hypotheses about low productivity numbers in the American economy. This article examines some of them.
  5. Retirement

    How Robo-Advisors Can Help You and Your Portfolio

    Robo-advisors can add a layer of affordable help and insight to most people's portfolio management efforts, especially as the market continues to mature.
  6. Professionals

    7 Apps Every Financial Analyst Should Have

    Review the seven best mobile apps for professional financial analysts for streamlining up-to-date information and performing data analysis.
  7. Investing

    Decoding the Merger of Alcatel-Lucent and Nokia

    Alcatel-Lucent and Nokia have a history of difficult mergers. But, their merger with each other may turn out to be the right fit for both companies.
  8. Investing News

    The Five Most Disruptive Technologies of 2015

    A breakdown of the five most important disruptive innovations in 2015, including wearable technology, ride sharing and smartphones.
  9. Investing

    10 New Apps That Help Budget For Expensive Cities

    From platforms for saving money to those that account for side jobs, mobile apps are changing spending habits and income generation in urban areas.
  10. Stock Analysis

    AT&T Stock: A Dividend Analysis

    Discover analysis of AT&T dividend policies, and explore the dividend policies of its main competitors, China Mobile Limited and Verizon Communications.
  1. Has increased data usage affected the telecommunications sector in developed countries?

    The big news in the telecommunications sector for developed nations is bigger, cheaper data. Global data traffic is expected ... Read Full Answer >>
  2. What are the main factors that affect stocks in the telecommunications sector?

    It is tempting to think that share prices in different sectors are controlled by unique underlying principles, but this is ... Read Full Answer >>
  3. Has deregulation helped or hurt the profitability of companies in the telecommunications ...

    Deregulation is almost always a double-edged sword in terms of business profitability. The profits of legally protected monopolies ... Read Full Answer >>
  4. How does the landscape of the telecommunications sector in the U.S. compare to Canada?

    From a global perspective, there are more similarities than differences between the telecommunications sectors in the United ... Read Full Answer >>
  5. What are the financial benefits of hire purchases?

    The primary financial benefits for a company using a hire purchase plan include maximizing working capital, the ability to ... Read Full Answer >>
  6. Why should an investor include an allocation to the telecommunications sector in ...

    An investor should include an allocation to the telecommunications sector in his portfolio, because telecom offers an investor ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  2. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  4. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  5. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  6. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!