If you ever sent a fax by email using a fax software package you may not realize it but you were using FoIP (Fax over Internet Protocol). Why? Because anytime you use email the message is being delivered by way if the IP part of your browser's TCP/IP protocol. In short, FoIP is a technology that allows faxes to be sent by way of the Internet, using fax machines. The fax machine is set up to receive a packet of information over the network.
When the fax is transmitted over the Internet, the information is converted to digital format, and stored as a series of packets (a packet is a little bit of information with a header and footer attached to it that any network device can read). This method requires less bandwidth therefore is more practical to business people who have to be concerned about bandwidth.