Voice over IP (VOIP) uses the Internet Protocol (IP) to transmit voice as packets over an IP network. VOIP can therefore be achieved on any data network that uses IP, like Internet, Intranets and Local Area Networks (LAN). Here the voice signal is digitized, compressed and converted to IP packets and then transmitted over the IP network. Signaling protocols are used to set up and tear down calls, carry information required to locate users and negotiate capabilities. According to a new forecast from IDC: “Accelerated adoption across all system segments will enable the market for semiconductors that enable VoIP solutions to reach $1.7 billion by 2008, with a compound annual growth rate of 48% CAGR for 2003-2008“.