Packet Telephony Packet Telephony consists of telephony and data tightly coupled on packet based switched multimedia networks. The packet telephony simply refers to the use of personal computers and a packet data network to produce a voice conversation. The goal of packet switched fabric in both LAN and WAN, the vision in to drive voice and data over a single multimedia (packet based N/W) allowing waves to engage in a media rich communication in a natural and straight-forwarded manner. The packet & based fabric is capable of supporting future applications such as video streaming and video conferencing. The transaction to a new paradigm will take years to complete. However technology matures and new application proliferate packet technology will appear in broader market. There is a major distinction between Intranet telephony and VoIP. While VoIP, which usually takes place in managed networks of large corporate is allowed in India. Internet telephony which occurs in public network is not allowed in India.