As the name implies, Analog Telephone Adapters are devices which convert the analog signals generated by your conventional telephone into digital 'data packet' signals that can be carried via the Internet. Conversely, they also translate the digital signals received by your Internet Connection into Analog signals that you hear through your conventional Telephone Handset.
The primary advantage of these devices is that they enable you to use your existing analog telephones to make cheap VoIP calls (this includes 'cordless as well as 'corded' models).
Analog Telephone Adapters come in a variety of models and interfaces. The majority of these devices are aimed at high-speed Internet Users insofar as they usually incorporate a Network or 'Ethernet' (RJ45) input and a conventional (RJ11) telephone jack output (into which you'd plug your conventional phone). The beauty of this design is that your computer doesn't need to be switched 'on' in order to make and receive calls.