Voice-over-Internet Protocol has been a subject of interest almost since the first computer network. By 1973, voice was being transmitted over the early Internet.[1] The technology for transmitting voice conversations over the Internet has been available to end-users since at least the early 1980s. In 1996, a shrink-wrapped software product called VocalTec Internet Phone (release 4) provided VoIP along with extra features such as voice mail and caller ID. However, it did not offer a gateway to the PSTN, so it was only possible to speak to other Vocaltec Internet Phone users.[2] In 1997, Level 3 began development of its first softswitch (a term they invented in 1998); softswitches were designed to replace traditional hardware telephone switches by serving as gateways between telephone networks.[3]

Revenue in the total VoIP industry in the US is set to grow by 24.3% in 2008 to $3.19 billion. Subscriber growth will drive revenue in the VoIP sector, with numbers expected to rise by 21.2% in 2008 to 16.6 million. The US's largest VoIP provider is Vonage