A network appliance (100) is provided having a network controller subsystem (110) for coupling the appliance (100) to a data network for providing and receiving data packets to and from a packet data network. A digital signal processing subsystem (120) is coupled to the network controller subsystem (110). A signal conversion subsystem (130) is coupled to the digital signal processing subsystem (120) and a user interface subsystem (160) is coupled to both the signal conversion subsystem (130) and the digital signal processing subsystem (120). The digital signal processing subsystem (120) operates under the control of a computer program which is capable of detecting incoming calls, initiating call sessions, and preferably, implementing advanced telephony features.