PSTN is the old way how telephones used to work, by switching circuits. Voice over Internet Protocol (VoIP) works with digital packet switching over the internet.

Just like a PSTN service, you can avail VoIP services for a monthly subscription fee. It is not even necessary to own or run a computer when using a VoIP service. You can take your regular phone and simply attach a device that allows it to function like a digital phone and you are done. This is a good option because VoIP telephone services are much cheaper than PSTN phone services.

Not only are long distance charges much lower for VoIP as compared to PSTN but the local charges can also amount to quite a saving. In fact, with certain providers, if you make local calls within their subscriber network, there is no charge at all. This option is exclusive to VoIP and cannot be offered by PSTN providers due to technological limitations.

If you wish to go truly digital then you will have to buy a digital phone. A cheaper option would be to buy a VoIP phone that comes preconfigured with all the hardware and software required for it to work with VoIP. One of the many non-technical reasons why VoIP is much cheaper than PSTN is that VoIP services are still quite new so there are no taxes applicable to them. Many features are exclusively to VoIP because of its digital nature.

A big disadvantage of VoIP is that unlike PSTN, your phone number does not get associated with your address. Since you can use VoIP from anywhere in the world as long as you have internet connectivity, this is a genuine problem when you consider that certain emergency services like calling 911 are not yet possible through VoIP phones. This means when you call 911 from VoIP, the dispatcher cannot know your address or current location. Both the VoIP providers and the FCC are working hard to resolve this issue.

Apart from that one hitch it must be noted that a lot of individuals and businesses are rapidly switching over to VoIP because of the cheaper costs and the features accompanying a digital connection. VoIP is proving especially helpful for people whose job involves a lot of mobility. This enables people to simply take their VoIP phone with them and start making calls from any point where they can find internet connectivity. Call centers are also benefiting from this because now it is possible to run call centers worldwide through one common telephone exchange at much lower costs.

VoIP offers many features, a lot of mobility, and much lower costs for local and international calls.

Stuart Drew is the owner of the popular PimpMyPageRank Blog, which deals in all issues technology, especially content, and income, generation in the online world.