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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

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Posted by VOIP Guy - November 11, 2011 at 3:36 pm

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Voice over IP makes communication easier and cheaper

It is often said that advancement in communication technology has shrank the world. While this statement is true, it needs to be modified a little. The credit for shrinking the world does not go only to the communication technology, but also to the advancement in the field of IT. Essentially, it is the advancement in the convergence of technologies rather than their isolated development in their respective areas which is to be held responsible for this shrinking of the world. This is testified by the voice over IP technology.

VOIP services as these are called in short, have been made possible by the convergence of communication and internet technologies. What is VOIP? Voice over internet protocol is a way of communicating with the others by making use of the software which can be run on computers or mobiles and by using high bandwidth internet connectivity. Using it, you would be able to communicate with the people free of cost or at a fraction of cost of the traditional telephonic methods. You are required to download and install the program on the computer or the mobile and get connected to the internet for communicating with the others.

VOIP has many benefits, which can be summed up below:

1.Allows for making free and cheaper long distance calls. The rates are a fraction of the costs involved through the traditional medium.

2.VOIP services are not just about voice communication. It allows for multiple ways of communication. You can do chatting with the people (send them I.M.), send SMS to mobiles of people, do group chatting or video conferencing, etc.

3.It also comes with additional features like call holding, diverting, barring or forwarding. You can even transfer files from computer to the other person and make adjustments or changes to the various functionalities.

4. Business VOIP services are especially helpful in managing multi-location communications among the employees. Some of the businesses make extensive use of VOIP services. These are the ones which have to deal with international clients, or the ones which are required to communicate frequently with distant employees. Some of the businesses are based on VOIP exclusively, like the call centre or the BPO operations.

5.The VOIP services can be had in different ways. You can use the computers based software to communicate, if you are working on computers. You can even attach the VOIP phone to the system to make it more convenient to receive or make calls. Even the Cordless phones can be used which can obviate the need for keep sitting at one place. If you are on the move, but are connected to the WLAN, or through the mobile internet service provider, then you can use the mobiles loaded with the VOIP software to make or take the calls.

6.Contributes to environmental improvement: If it were not for the VOIP phone services, people would have moved or traveled around more leading to greater stress on the fuel resources and contributing to environmental deterioration.

Smallbusinessphonesystem is a writer who frequently writes about services such as:- Business VOIP, VOIP services & Cordless phones.

More Voice Over IP Articles

VOIPO residential phone service for $8.25 per month

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Posted by VOIP Guy - September 26, 2011 at 8:28 am

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