Certainly not a silly question.
VOIP = Voice over internet protocol. This means your voice is converted to data which is sent to any normal phone via your Broadband connection. Your Voip Provider converts the data back to voice before it hits the other person's 'phone.
Voip will work on
any Broadband connection of 512/128 or over, but works best if your speed is faster - say 1500/256 (ADSL2+ is faster than this but is not yet available in Jamestown). For Voip to work you either need a Broadband Router/Modem/Voip unit like the Billion 7401VGP, or a separate Voip adapter that plugs into a LAN port on your Broadband Modem Router.
So you have :
Internet-------Modem/Router/&/or Voip Adapter------Plug in normal or cordless phone >>> enter some setting and make normal phone calls way cheaper than Optus or Telstra charge. Many ISP's (Internet Service Providers) offer Voip e.g. Adam Internet & Internode.
I personally use MyNetFone Whirlpool Saver account
https://www.mynetfone.com.au/offers/whirlpool/whirlpool-plans/whirlpoolsaver-plan/(a non standard plan you can read about in Whirlpool - see below) which costs:
10c for untimed national calls (anywhere in Australia)
15c per min for calls to mobiles (no flagfall-per second billing)
International calls from 1.9c per minute - e.g. UK with no flagfall.
One free DID
2 Lines
No monthly feeQuality is equal to (or better than) a standard 'phone line if it's set up correctly e.g. use only the G711 A-law codec if you have a 1500/256 connection which uses more data but is perfect voice quality (The smaller data codecs e.g. G729 are just as good on slower connections, it's just my personal preference to use G711 A-law as I have ADSL2+).
You can also get what's called a DID (Direct Indial Number - one or more). Let's say you have heaps of relatives in Qld. You can ring them untimed for 10c but they get charged STD rates when they call you. If you get a Qld DID they can 'phone that number & reach you untimed from any Telstra/Optus 'phone for the cost of a local call, with no time limit!More info - as well as hardware pricing, can be found at https://www.mynetfone.com.au/(refer to the above link for the least expensive plans and equipment). They have great equipment pricing - far cheaper than elsewhere + call credit bonuses. There are many other reliable providers if you search the net or read all about Voip in the Whirlpool Forum at http://forums.whirlpool.net.au/forum-threads.cfm?f=107.Happy to provide more info or to help anyone set up. The savings are
HUGE!
N.B. I believe Telstra block Voip Ports 'cause they want you to use only a normal phone. So if you are with BigPond and want VOIP, maybe it's time to look for an alternative ISP, with a "shaped" Plan, who support Voip and are almost always cheaper than Telstra with bigger data allowances.