A VOIP service and method is provided which comprises an redirecting dialer device (RDD), which connects a telephone to a POTS circuit. Responsive to DTMF signals from the telephone representative of a long telephone distance number, the RDD intercept the DTMF signals and transits alternative DTMF signals representative of an alternative telephone number of a PSTN/VOIP gateway server. Once connected to the PSTN/VOIP gateway server, the RDD then transmits the DTMF signals associated with the original long distance number. The VOIP gateway server is operative to convert the analog signals from the telephone into digital and packetized VOIP data which is transmitted through a public or private IP-based network to a remote telecommunication device associated with the original long distance telephone number. If the DTMF signals from the telephone are representative of a local telephone number, the RDD is operative to forgo transmitting the alternative DTMF signals.