Internet phone services are no longer restricted to geeks. Thanks to slick marketing campaigns, catchy jingles, and super low rates, broadband phone services have hit the mainstream.

It used to be that Internet phone services (also called Voice-over-IP, or VOIP), were not very popular. They suffered from two problems: one, the user could only call from computer to computer, and two, the voice quality was not very good. The first restricted the calling to users who had the same software and were also online at the same time. The second reduced the quality of interaction because the voice was not clear.

Today, broadband phone companies have overcome these problems. The result is Internet phone service that works and sounds like the traditional landline phone, and packs punch when it comes to free features like caller ID, call waiting, and 3-way calling.

In this exploding market, companies are in a sprint to sign up new customers. According voipproviderslist.com, there were more than 650 service providers selling broadband telephone service in North America alone, and the list continues to grow. Some of the better known ones are Skype, Vonage, Packet8, AT&T CallVantage, and Time Warner Cable.

All these services convert voice into data packets, which are then assigned IP numbers and sent over the Internet. When the call is from one Internet phone to another, these data packets completely bypass the existing phone network. However, when one of the phones connects to a conventional telephone service, then the voice call moves over two systems: the PSTN (Public Switched Telephone Network) and the Internet. Because Internet phones both look and operate like regular phones, both parties are unaware that their voice is being converted into digital packets and reconverted into voice signals.

For monthly rates between $15 and $40, you can get residential internet phone service that provides unlimited calling throughout North America and low rates to everywhere else. But, if you are looking to replace your traditional phone, you should be aware of several key downsides.

One is that VOIP calls rely on wall power, so during a power outage you wont have any phone service. Another is that 911 emergency dialing is not automatically tied to a geographic address like it is with regular phones. This means that unless your VOIP service provider can register your physical address, and can forward it to a national emergency center who then routes the call, you must be prepared to provide this information to the emergency operator. This may be impossible if you are unable to speak or if the caller is a small child. Some users have also reported inconsistent voice quality, like clipping, dropped calls, echo, and background noise.

But, if you can put up with these drawbacks in exchange for up to 50% savings on your phone bill, then Internet phone service is for you. Youll find big company phone features packaged and priced right for residential use, home-based business, and frequent long distance calling.