Abstract: A system and method for placing long distance calls from a telephone through the Internet and for receiving telephone calls on a telephone from the Internet is disclosed. A phone server bridge circuit associated with a CPU includes an incoming line for receiving dual tone multi-frequency (DTMF) telephone numbers and normal voice signals. The received telephone numbers are supplied to a lookup table, which provides an Internet protocol (IP) address corresponding to the dialed number. A digital signal processor receives the Internet provider address and the normal voice signals associated with it and converts this information into Internet packets of digital data signals, including compressed voice signals. The packets of digital data signals then are supplied to a local area network, from which a router directs the Internet packets with compressed voice to the Internet provider associated with the Internet address.