VoIP, which stands for Voice over Internet Protocol, takes analog audio signals, such as a normal phone call, and turns them into digital data that can be transmitted over the internet.

VoIP can turn a standard internet connection into free phone calls, which is similar to Skype and Google Hangouts. By using some of the free VoIP software that is available to make internet phone calls, you are bypassing the phone company and their charges.

VoIP has the potential to completely redesign the way we use phones.

VoIP providers such as My Net Fone (mynetfone.com.au) have been around for a while and are growing rapidly. Telstra (telstra.com.au) is already setting up VoIP calling plans all over Australia, which is fantastic for regional areas.

If you're interested in trying VoIP, you should check out some of the free VoIP software available on the net. You should be able to download and set it up in only a few minutes. Get a friend to download the software as well, and you can test the quality of VoIP in your area.

We use VoIP for our business, and the flexibility is amazing as we have techs all over Australia, Bangladesh and in the Philippines - each with their own phones which are connected to our office line over the internet. Studies have shown that, compared to a normal phone line, using VoIP can save up to 40 per cent on local calls and up to 90 per cent on international calls.

Robert Morgan is the managing director at PIT Group.