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This is known as Voice Over IP, or VoIP. With this, your phone is connected to your internet-connected computer. When you make a call, your computer translates it to IP(Internet Protocol). It then sends that call out via the Internet. If the recipient has VoIP as well, the process works in reverse for them to receive the call. If the recipient doesn't have VoIP, your call goes to a translation device near the recipient. The device then takes the data, translates it back to a normal voice call, and sends it to the recipient through standard phone lines.

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Q: What configuration is used to phone over the internet?
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