IP telephony is a general term for the technologies that use the Internet Protocol’s packet-switched connections to exchange voice, fax, and other forms of information that have traditionally been carried over the dedicated circuit-switched connections of the public switched telephone network (PSTN). Using the Internet, calls travel as packets of data on shared lines, avoiding the tolls of the PSTN. The challenge in IP telephony is to deliver the voice, fax, or video packets in a dependable flow to the user. Much of IP telephony focuses on that challenge.
Currently, unlike traditional phone service, IP telephony service is relatively unregulated by government. In the United States, the Federal Communications Commission (FCC) regulates phone-to-phone connections, but says they do not plan to regulate connections between a phone user and an IP telephony service provider.