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VoIP (voice over internet protocol) is a phone service in which calls are sent over the Internet rather than using a traditional public switched telephone network (also referred to as a landline). This type of phone service can save businesses that make frequent long distance calls a significant amount of money. Voice over IP phone systems also offer features, such as call blocking, call forwarding, caller ID, 3-way calling, and many others, at a lower cost than other types of phone systems. The cost of these phone features, however, will vary depending on which voice over IP service is chosen.

A broadband Internet connection is required to incorporate a Voice over IP system into an office. A voice over IP provider can test Internet connections to make sure they will be able to handle the added traffic of incoming and outgoing phone calls. A voice over IP phone must also be purchased for each employee, or, existing phones can be used with the addition of an analogue telephone adapter.