Internet telephony is the ability to make voice calls over any internet connection, particularly broadband, using Voice over Internet Protocol (VoIP). While handsets are still expensive compared to landline handsets, VoIP call costs are reduced and calls to other internet phones are often free of charge.
Although VoIP has existed as a technology for much of the last 10 years, the mass market for broadband connections and the recent emergence of IP telephony-enabling protocols have revolutionised the sector.
The report also predicts that 17.5 million US households will be using the technology by the end of 2008.