The present invention provides an echo reduction apparatus, system, and method that advantageously reduces echo when communicating over packet-switched networks. An echo reduction apparatus, including echo reduction circuit, operably couples a headset or handset device to an audio source that is capable of transmitting a sound signal. The echo reduction circuit receives the sound signal from the audio source and a transmit signal from the headset or handset device and provides an adjusted sound signal to the audio source. Advantageously, a variety of headsets and handsets may be used in accordance with the present invention with reduced caller echo and without the need to purchase new headsets or handsets.