Once such item is Voice over Internet Protocol, also known as VoIP. This innovation renders the whole concept of long distance virtually obsolete. It bypasses the traditional telephone company infrastructure and delivers phone service over a broadband internet connection to a regular phone. Similar to cell phones, this service is purchased based on a fixed and/or unlimited number of minutes. However, geographical divisions are generally made by country or continent, rather than by local calling areas or area codes. For example, a typical VoIP contract in the U.S. would stipulate unlimited calling to North America and 300 monthly minutes for calls to everywhere else. Unlike cell phone service, you are not charged for incoming calls. With VoIP service, area codes are not much of an issue, although you still must have one.

One of the major advantages of VoIP is that it is less expensive than traditional phone service. Since it bypasses most of the phone companies' infrastructure, it also bypasses many of the taxes associated with it. So far, Congress has maintained a hands-off approach when it comes to taxing VoIP services. Most of the major phone companies are either now offering VoIP or plan to start by mid-2005. However, there are some smaller companies that are offering it at a much lower cost. Vonage is a small company that was one of the pioneers of VoIP.

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