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Depending on how old you are, you might remember when phone service was a simple thing. You had "Ma Bell" and that was it. You had one type of phone, a plain old touch tone model. Or if you want to go way back, one of those rotary things that took forever to dial. Well, thank goodness for some changes.

However, the latest innovation in telephone service is Internet-based phone service...alternatively referred to as Internet telephony, Voice Over Internet Protocol, Voice Over IP or just plain old VoIP for short. Whatever you want to call it, all these terms refer to the same thing - using your existing Internet connection to send and receive phone calls rather than using your standard telephone line. So is it a good deal? How's the quality? What kind of equipment do you need? And can it really save you money? Let's tackle some of these questions throughout the rest of this article.

Is Internet Phone Service a Good Deal?

We won't get into the specifics of what VoIP is or how it works because to the end user, it really doesn't matter all that much. You'll simply pick up your phone and dial like normal, so what happens behind the scenes is as about as important as what happens when you pick up the telephone. Exactly, it just doesn't matter as long as it works!

Internet phone service can be a really good deal depending on your needs and how much you currently pay for phone service. A local calling plan with more bells and whistles than you'd probably use can cost you as little as $20 per month. Some plans might even be a little less. Most VoIP carriers include several features that would cost you extra when using service through your local phone company.

They also include great rates for long distance and international calling. Actually, some companies offer free long distance within North America. You probably won't find a service that offers free international calling but the per-minute prices are so small that it's almost insignificant unless you're calling a really out-of-the-way location.

How is The Sound Quality?

Most likely, the people you talk to won't be able to tell you're "calling through the Internet". Although depending on how much network traffic you're getting, you may experience some distortion, similar to what you get on a cell phone that's receiving a weak signal. And the quality remains the same no matter where you're calling. Having spoken to a friend in Australia recently (and I'm in the States), I can say I was thoroughly impressed with the sound quality this type of service can provide.

What Kind of Equipment Will You Need?

In terms of equipment you'll need, of course the first thing is a reliable connection to the Internet. Preferably this will be a broadband connection such as cable, DSL or satellite but some companies even work over dial-up. However sound quality might suffer when using dial-up service and the convenience factor goes way down since you'll have to log in to your Internet Service Provider before making a call. So as a general rule, it's best if you have a broadband, "always-on" Internet connection.

You'll also need a compatible phone. This can either be a specialized phone made to work with your new Internet phone service or you can simply use an adapter on your regular phone to make it compatible (this is the more common option). Your service provider will normally give these adapters to you for free.

There are a host of big name companies offering Internet-based phone service as well as some smaller, lower cost companies. In terms of which company to choose, your best bet is to check out the offers from several companies and decide from there. You'll find that most are pretty competitive with one another in terms of what they offer for the price but there might be aspects of one company that you like over another so it's good to compare before jumping in.

Whichever company you choose, you'll be able to take advantage of great calling features and a lower monthly phone bill by using a VoIP telephone service.