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Internet telephony refers to a technology that allows the Internet to be used a telephone. It is also known as voice over Internet protocol (VOIP) or Internet protocol (IP) telephony. It is one of the most popular technologies these days.

It is easy to use. Even a common household can use it. All you need is a computer with Internet access and certain software. On a normal telephone one can generally talk with one person at a time, but Internet telephony allows you to talk to more than one person at once. There are a variety of hardware and software devices that can make and receive Internet telephony calls. Many traditional telephone networks have started offering these services in view of their huge business potential. Today there are large numbers of companies offering these services at competitive rates. The Internet telephony market is poised to grow rapidly.

One of the reasons for the rapid expansion of this market is cost effectiveness. The procedure to install software and hardware required for this service is not only simple, but very cheap. The software is available online also.

For a consumer it means cutting costs, especially if one is making frequent overseas calls. The voice quality is almost as good as with a traditional telephone. Corporate entities are able to cut costs drastically with the help of Internet telephony. In fact, long distance calls can be made for free if one has Internet access and the required Internet telephony hardware and software.

Internet telephony has made it possible to receive telephone calls anywhere if you are connected to the Internet. It can be integrated with other date-transfer services also. However, there are certain drawbacks of this technology. If the broadband connection is not reliable there can be a breakdown in the transfer of voice. This could result in aborting a call abruptly. Also, at times, the quality of the voice may suffer.