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. Radio Frequency Identification ...

    A technology that allows the identification of an item using ...
Related Articles
  1. Personal Finance

    How To Pick The Best Telecom Stocks

  2. Entrepreneurship

    From The Printing Press To The Internet

  3. Investing News

    How Carlos Slim Built His Fortune

  4. Retirement

    9 Reasons You May Never Retire

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center