IP Phone service allows you to make phone calls through Internet. You can reach anybody with a telephone number whether its a local, international or mobile number. Some services work only on the computer or through a special IP Phone while some others work even on the traditional phone with the help of an IP adaptor.

Apart from the Internet service charges there are no extra charges involved for the calls. There are a number of services that provide this kind of almost free IP calling. The most popular of them are Yahoo Messenger, MSN Messenger, Skype, The Globe and Google Talk. However these free services have certain limitations. They require computer network and Internet or a special IP Phone.

There are many companies which provide commercial IP Phone services. Names of the service providers, their service features and tariffs are available on-line. These services allow an IP call even through the traditional phone lines. They connect an IP router, which is connected to the main router or the broadband modem at the service providers place, with the existing regular phone box at the customers place. This facilitates IP calls from a traditional phone even without computer network and Internet connection. But the problem is that when the computer network goes down there is no phone facility either.

The service provider charges for giving the connection. These charges include initial installation charges and the regular monthly service charges and or per call charges. The basis of charges differs from provider to provider. Some charge depending on the distance whereas some charge a flat rate for a fixed number of minutes irrespective of the distance. Some offer unlimited calls and unlimited talk time for a fixed monthly payment.

There are so many companies with varying service options and tariffs. Before choosing a particular service one should check the price range, features available and whether any technical support is offered. Also, one should check whether any emergency services are also provided and whether the IP phone number is portable with the existing landline number.

Even the paid IP Phone services are much cheaper than the regular phone call charges and prove especially economical for long distance calls. Due to the price war among the IP Phone service providers the customers can expect even more competitive prices.

There are only federal taxes on IP Phone services. The Federal Communications Commission, which regulates IP Phone services in USA, ruled that individual states have no jurisdiction to impose taxes on IP Phone services. This single point taxation helps the IP services stay cheap. Also, there might be only minimum regulation of these services for some time to encourage investment in broadband services.