VOIP is the buzz word everywhere and it is time you understood the VOIP technology and why it is usurping the traditional telephone system. VOIP is an acronym for Voice over Internet Protocol, or simply stated, it is phone service over the Internet. If you have a broadband Internet connection, you can then get phone service delivered through the Internet connection instead of the local phone company.You must know how different will the VOIP technology be over your conventional telephone system. There are, of course, a lot in common, but there are also some decided advantages that VOIP technology offers. VOIP will facilitate local, long distance and international telephone calls over your high-speed internet connection at incredibly low rates. VOIP technology is constantly getting updated and there are a lot of new features getting added.Few of the attractive VOIP telephone system features are – voice mail, three-way conference, speed dialing, call forwarding, simultaneous ring, call waiting, caller ID, call return, caller ID block, anonymous call rejection, do not disturb feature, and last number redial. This is not to speak of the tremendous cost savings you can enjoy by switching over to VOIP.An IP address identifies each IP phone, and it is known by this IP address regardless where it is plugged in. The only thing required would be a broadband connection. This makes the system both portable and flexible.If you use VOIP through a PC-to-PC connection, then your calls are free anywhere, as long as, the receiver of the call also has VOIP. Further, most VOIP providers offer unlimited calling plans for calls made within a certain area, for single monthly fee. Whatever the use, one thing is abundantly clear – traditional phone service is much costlier. Most VOIP service providers also offer extra premium services such as caller id, without additional charges.This is not to say that VOIP has no demerits. As a matter of fact, there was a recent press release stating the technical review conducted by the British government has found several security flaws in products that use VOIP. There is also concern that the VOIP does not full support its own encryptions yet. Thus it will be easy to eavesdrop on VOIP telephones and to even alter what is spoken.Another major problem with VOIP is that it is run by power and if there is a power outage, your communications will come to a standstill. This is unlike traditional phone service, where you can still use your phone without the aid of electricity. Voice quality of VOIP is certainly efficient under normal conditions, but when you run into high traffic times in cable broadband, it could affect voice quality.There is no denying that VOIP still has some drawbacks to be ironed out. You may exercise your discretion whether to go in for VOIP technology now or wait for some more time till these limitations are removed. It is reasonably expected that sooner than later, the research wing of the company will address these shortcomings and perfect the VOIP technology. But in the ultimate analysis, VOIP’s benefits outweigh its negatives and it is for the intending buyer to study the pros and cons and make an informed decision.