The technology and its enhancement each day has become the driving force of change in the modern world. It has altered the economic structures as well as the way we communicate.Voice Over Internet Protocol (VOIP) is one of the general terms these days as concerned to transmission technologies for the delivery of voice communications over IP networks such as Packet Switched networks or Internet. It is a system that allows you to make voice calls using a broadband connection instead of regular phone lines.IP Telephony refers to communication that is transmitted via the internet. Under this system communications are converted into digital signals that travel over internet. All that you need to make your IP calls is a broadband connection service such as DSL or LAN network and a computer if the devices are such.Because of its bandwidth efficiency and cheaper rates that is provided with VOIP technology it has been becoming more and more popular. More and more VOIP service providers have been emerging in the recent years and clearly it is turning over to move towards mobile VOIP that will allow same features and convenience on the go with its cheap call rates. As per improvement in technology there will be significant change in the quality of data transmission, with improved multimedia and video conferencing provided by many service providers.The next step most probably would be towards the standard mobile networks particularly emphasizing over the 3G, GPRS standards. The implications of these would be profound enough to shake the future technologies to a huge extent. It has been speculated that like the iPhone and other smartphones have hit the market, so does the use of Voice over IP that would allow users to use applications like Skype and Fring that will allow make free calls over their mobile phones.The use of VoIP applications like Skype over eventually all the smartphones has Very significant implications for mobile communications. Along with low costing VoIP calls mobile networks are also providing with 3G services have projected a very dynamic forecasts for mobile phone operators.