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When the Internet is used for communications by voice, facsimile, or video conferencing the process is called Internet telephony. Known as voice over the Internet VoI or voice over IP, VoIP, in this system, sound is converted into digital packets that are then transmitted over the internet to the receiver where it is once again converted into sound or text. All one needs is a multimedia computer, a high speed Internet connection, a sound card, speakers, and a microphone. Since it reduces telecommunication costs significantly, many individuals and businesses are adopting this system. The charges of internet telephony are not dependant on the distance but just a flat fixed rate for use of bandwidth.
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