Until recently fixed line and mobile telephones accounted for all of the telephone market. However, lately several companies have launched telephony services that operate over the internet called Voice over Internet Protocols (VoIP). The main benefit of VoIP is the lower cost per call, and calls within the network are usually free. However, the hardware used for VoIP can be more expensive. The main drawback of VoIP is that high compression techniques are used to save internet bandwidth, which can lead to low call quality. If the internet network used by a persons VoIP system is congested call quality can also suffer.
Many telecommunications companies are launching VoIP services to retain customers, but there are several pure VoIP companies. Two main ones are:
Skype: This is a program that is downloaded onto a computer, and needs only a microphone, speakers and internet connection to work. As of mid-2005 Skype boasted over 125 million downloads worldwide, although not all of these are active users. Skype measures its usage in terms of the number of minutes people have talked on its service -- in mid-2005 the company passed the 10 billion minutes served mark.
Vonage: This service resembles are more typical phone service with a telephone and monthly bill. Vonage claims to be signing up 15,000 people every week in the United States and aims to have one million customers by 2006.
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