Two things have made traditional telephone service providers like AT&T and Bell so powerful. Their monopoly over local telephone services, and their traditional stranglehold on lucrative and usually over-priced “long distance” services. Both of these captive markets have been seriously eroded over the last few years, as the reality of VoIP has started to sink in.

In anticipation of the revolution that is now upon us, most aspects of telephone service have gradually been opened up to competition. Most of us now have a choice of providers for both local and long distance telephone service. And the biggest reason for the new competitive environment is the recognition that the widespread adoption of VoIP is inevitable.

VoIP has been developing slowly over the last ten years or so. Early implementations allowed computer users to talk to each other through their computers. This was only feasible if you had a voice-enabled computer, a reliable and stable internet connection, and a software program installed on your computer that made it all work.

The advantage of this computer-to-computer communication was that you could completely bypass the traditional telephone system and talk to anyone in the world free of charge — as long as they had a similar setup to yours. But the disadvantages of communicating this way were also obvious. You could only communicate this way using your computer. You were completely dependent on often unstable dial-up internet connections. And the person at the other end of the conversation had to also be “online” with a voice-enabled computer.

Today’s versions of VoIP have left these problems in the past. Two things were required to make VoIP technology feasible on a large scale basis, and both of these things have now been realized.

First, broadband internet service has been widely adopted. This makes it possible to have stable internet connections that are “always on”. Second, the industry has developed a simple, inexpensive method of integrating the IP network (the internet) with the traditional telephone system. This allows a user of VoIP to use his or her own telephone to call anyone else in the world who has a traditional telephone connection.