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VoIP service provider

A voice over Internet Protocol (VoIP) service provider offers VoIP Internet telephony solutions to residential and commercial customers. Also known as an Internet phone service provider, a VoIP service provider generally provides the VoIP hardware and services to subscribers at a monthly rate, although hosted VoIP services are also quite common.

As with all VoIP solutions, VoIP service providers utilize packet-switched telephony to transmit calls over the Internet as opposed to the circuit-switched telephony used by the traditional Public Switched Telephone Network (PSTN). VoIP calls are like regular phone calls but they're made over a broadband high speed Internet connection rather than over a regular telephone line.

The key advantage to VoIP phone calls is that unlike regular long-distance calls, calls made through a VoIP service provider are free – there are no fees beyond the cost of your Internet access.

See The Difference Between VoIP and PSTN Systems in the Did You Know? section of Webopedia.
Also see the VoIP Meets WiFi article in the Did You Know? section of Webopedia.

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