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Voice over IP (Internet Telephones)

In order to use Voice over IP, you need some software. Below are some of the popular providers:

Skype provides a VoIP service, enabling users to call another Skype user for free using the Internet. You can also:

Website: http://www.skype.com/

Gizmo is an alternative to Skype, which some customers prefer to use. Gizmo provides the some extra features than Skype:

Website: http://www.gizmoproject.com/

Unfortunately, there is no direct way to connect a Skype user to a Gizmo user.

SIP Providers

Unlike Skype and Gizmo, SIP (Session Initiation Protocol) providers don't provide the Instant Message service, instead they are dedicated to providing the Internet Telephone service. SIP providers give cheaper internet calls and sometimes free calls to different countries. Check their websites for individual call rates:

Website: VoIPCheap.co.uk
Website: SIPDiscount.com
Website: VOIPBuster.com

You can use SIP Providers in two ways, hardware (using a dedicated internet telephone, or an adapter) and software.

Connect your headset, microphone and headphones or handset to your computer and run the software. Setup the software for the SIP Provider.

Now you can simply dial the number just like on a normal telephone and press the connect button. Answer calls the same way.

Website: http://www.counterpoint.com/

Hardware

If you want to use a normal telephone, you can buy a device called an ATA (Analogue Telephone Adaptor) and connect this device to your network or ethernet broadband router

Note:
You cannot use a USB broadband connection with an ATA or dedicated internet telephone
You can buy a dedicated internet telephone which connects directly to your network or ethernet broadband router.
Internet Telephone exchanges are dedicated devices that enable normal telephones to connect with internet telephones and telephone lines as well as SIP providers. Asterisk provides many services a normal phone exchange provides, such as music on hold, call transfer and custom voicemail and conference facilities.