Real time transmission of voice over the Internet also known as Internet Telephony is sure to take a big leap into the modern world of technologies. Web phone lets two users to talk over the Internet for only the cost of connecting to a local server instead of calling over regular phone lines and paying long distance charges. The benefits of IP Telephony provides sufficient justification to evaluate the technology today to determine how an Internet dial tone can complement traditional PSTN services for the organization. Web phone promises free, feature-rich telephone services. Web phone can yield big cost saving to both corporations and consumers. It is more efficient than the plain old telephone service (POTS) and is poised to undergo huge growth. Before that growth can occur, however, designers who want to use the technology have to vault hurdles concerning latency and quality..