Broadband phones use the Voice over Internet Protocol (VoIP) to transmit phone calls over the Internet rather than through the telephony network. In other words, calls are transmitted over broadband rather than through telephone lines.
Technically, when you make a broadband phone call, VoIP converts your voice into digital packets that are sent over the Internet and converted back into analog signals before they reach the receiver on the other end (if youre using a broadband phone to call someone whos using a landline or cell phone).
Both hardware and software broadband phones are available. Hardware broadband phones use an adapter (either as an add-on to your traditional phone or built in to an all-in-one phone unit). The hardware is then connected to either the router on your network (via Ethernet) or your PC (via USB). Software broadband phones use a software program to make broadband calls.
VoIP, the technology that makes broadband phones possible, is being hailed as the future of communications and more companies are offering broadband phone services every day. (See Are Broadband Phone services For You? for a comparison of several broadband phone service plans.)
Because broadband phone calls bypass regular Telco tolls, broadband phone service providers are able to offer lower rates, particularly on long distance calls. However, as of this writing, broadband phone services still dont have the reliability and quality the regular telephone network provides.

