IP phones allow its users to speak over an IP network, which could be either Internet or intranet. Its biggest benefit is its extremely low cost. The user only needs to pay for the IP phone software as all the calls made through these phones are free. IP phones transport voice by converting it into several small data packets rather than through circuit-switched connections over voice only networks.

Cisco is one of the leading providers of IP phones. Some of its IP phones are designed to grow as the system capabilities grow. For example, the features of the phone can keep pace with the new changes via the software updates to its flash memory. Their multiple protocol enabled phones are ideal for managers and executives as they are provided with over six programmable line and feature buttons, along with a high quality speaker phone. Its dynamic soft keys help the user navigate through the call features and functions.

Another IP phone vendor, Polycom, provides a high resolution display and is quite useful for users who require multiple lines, as it provides them with six line convenience. Its IP phone is equipped with a two-port Ethernet switch and an auto-sensing Power over its circuitry, making it easy to install. It provides a flexible IP communications solution and delivers good voice quality.

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Yet another IP phone vendor, Nortel's higher end IP phones come with a 5.7$%: color touch screen, thus bringing multimedia presentation support to desktop IP phone. It enables both pre-packaged and customized content from external application servers to be optimally presented on its display. It also provides up to twelve programmable line / feature keys and about 650 business telephony features, helping it to deliver robust voice communications support.

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