Voice over Internet Protocol, short for VoIP refers to the transmission of voice traffic over Internet Protocol (IP) based network. It is a category of both software and hardware that allows people to make use of the Internet.
This means that the calls that go over the Internet are traveling over privately controlled data networks that are using IP rather than by traditional circuit transmission to transfer the calls from one site to the other using a carrier system interface. They are then sent over the public controlled telephone network.
Making use of a VoIP call is just as creating a normal touch tone telephone and dial the normal phone number any time you wanted to. The person on the other line will not even notice whether you are calling on a VoIP phone or just an ordinary telephone. The main difference is that the phone calls that the VoIP uses travels over the Internet rather than through the local company