Small businesses are always looking for ways to increase their competitiveness by cutting costs, improving their value proposition and requiring their staff to work more efficiently. Today, in the telecommunications industry, a new technology called VoIP - Voice over Internet Protocol (Internet-based phone service) has emerged and is making all of the above and more, possible for SMBs (small and medium-size businesses). VoIP technology compresses voice (audio) data into packets that can be transmitted over data networks and the public Internet, and converted back into voice at the receiving end. This is the basis for some of the significant cost savings as voice now becomes just another form of data, allowing for integration with web based applications and the development of new features that would be impossible using traditional networks.

VoIP uses packet-switched networks to carry non-real-time data using much less bandwidth. The advantages of such networks are flexibility, efficiency, and scalability. Flexibility: networks can be built in a variety of configurations to suit the number of users, client/server application requirements, and desired bandwidth availability. Efficiency: bandwidth is consumed only when needed; service providers can converge their traditionally separate voice and data networks, and carry voice, video, fax, and data traffic over the same network; many terminals can share the same connection to the network and as a result, significantly more traffic can be transmitted over a packet-switched network than over a circuit-switched telephony network. Scalability: Extensions can be easily added to the network as growth demands. These advantages help create cost savings that can be passed on to consumers in the form of lower telephone bills. Around the world, more than 25 million SMBs could realize significant benefits by employing VoIP as their phone service.