VoIP stands for Voice over Internet Protocol. VoIP is often free depending on what service you are using however you will generally not get much or any support.

Skype is one example of a VoIP applicaation. Skype uses your internet connection to make and receive phone calls over the internet and this is exactly the same as any other VoIP Service.

The VoIP Service and calls are generally a lot cheaper than normal PSTN/ISDN phone calls and costs (from BT or Sky for example)

Many more businesses nowadays are migrating over to VoIP as it is much cheaper and has much more functionality than any traditional phone systems, some people have had their international call costs cut down by 90% since switching to VoIP.

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