VoIP stands for Voice over Internet Protocol. It is the ability to transmit voice over the Internet and to either a receiving computer or telephone. VoIP works by what is referred to as the Packet Switching Network. Standard landline telephones use the Circuit Switching Network. The entire landline telephone system is known as the Public Switched Telephone Network.

The main difference between Packet Switching and Circuit Switching, is that Packet Switching uses (data) or Packets and sends them over the Internet while Circuit Switching is accomplished by using electrical circuits to make a telephone connection. Circuit Switching is like the old switchboard operators, wearing headsets frantically trying to connect the right caller with the receiver. Packet Switching is used to transfer data all across the Internet- it is used for E-mail.

Packet Switching converts audio formats into data packets and transmits them over the Internet, then reassembles them on the other person’s phone or computer in real time.

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