VOIP stands for Voice Over IP, meaning it is phone service over the Internet.
If you have a quality Internet connection you can get phone service delivered through your Internet connection instead of from your local phone company.

Some people use VOIP in addition to their traditional phone service, since VOIP service providers usually offer lower rates than traditional phone companies, but sometimes doesn't offer 911 service, phone directory listings, 411 service, or other common phone services. While many VoIP providers offer these services, consistent industry-wide means of offering these are still developing. In general phone service via VOIP costs less than equivalent service from traditional sources. This is largely a function of traditional phone services either being monopolies or government entities. There are also some cost savings due to using a single network to carry voice and data.