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- PC to PC. This is where you are calling from your PC to another PC that is know by you. This is the least expensive option and only requires that both PCs have some specialized software and the appropriate audio equipment (speakers, microphone) in addition to having pretty good Internet connectivity. This could cost either nothing or up to around $100 depending on what you have to buy. A couple of examples of software are: Gphone, CyberTalkOnline. Of course the limitation here is that you can only the appropriate audio equipment (speakers, microphone) in addition to having pretty good Internet connectivity call other PCs/people who have PCs configured to receive these calls.
- PC to telephone/PSTN (public switched telephone network) using a VOIP service provider. This is where you are calling from your PC to anyone's phone number. This will require that you subscribe to a VOIP service provider like Net2Phone or Gphone in addition to having the appropriate equipment (speakers, microphone or IP phone) and pretty good Internet connectivity. You can read about Net2Phone's service at:
http://dcs.net2phone.com/products/commcenter/features.asp
These service providers will normally charge you a per minute fee but it will be lower than the cost from a traditional telephone company. - Telephone to telephone/PSTN. It is possible for you to connect an IP phone into your DSL service and make calls directly to call a telephone on the PSTN. This is the most expensive option and will likely cost several thousand dollars - the most expensive part would be setting up the gateway to the PSTN. An alternative would be to us an IP phone with a VOIP service provider (this would be a variant of #2) and would be much cheaper than setting up your own gateway.
Here are a couple of good general references that you can look at too:
http://www.howstuffworks.com/ip-telephony4.htm
http://www.microsoft.com/serviceproviders/products/teleservices.asp
There are two things that have significantly slowed down the deployment of VoIP these days:
This was first published in February 2003