Q&A: Why is VoIP cheaper than using a telephone?

Question by amnorge: Why is VoIP cheaper than using a telephone?
I know calling via VoIP is cheaper than using a normal telephone, but why?

How come the provider can afford to charge you less? Is it cheaper for them?

Best answer:

Answer by joshy
The VoIP provider is using the internet to put the calls through and does not need to pay any overhead for using telephone lines belonging to private companies.

Know better? Leave your own answer in the comments!

VOIPO residential phone service for $8.25 per month