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Why Are VoIP Calls so Cheap?

July 12, 2012 | Comments: 0 | Views: 192

One of the greatest attractions of VoIP is that it costs far less to make VoIP calls than a regular PSTN one. Despite the many features and benefits that VoIP provides, the lower cost is one of the star attractions. As many as 70% of businesses adopt VoIP communications in order to reduce their costs. The cost differential is increased dramatically when you're talking about international calling. With overseas calls, VoIP costs a mere fraction of what the regular system charges.

The reason why this is possible is that VoIP makes use of the Internet to deliver voice data whenever possible. Since you've already paid a flat rate for your Internet connection, you're not charged anything extra for the network delivery. You use the same set of tubes for VoIP that you use for web browsing, e-mail and YouTube videos. Most of the time however you're not calling a subscriber who is on VoIP themselves, but one who is making use of a regular PSTN telephone. For these calls, sooner or later your voice has to drop down to the traditional lines so that it can reach them. This is the reason why VoIP calls are not free. The distance that they travel over the Internet is not charged.

That's why VoIP is able to provide such low costs for overseas communication. The voice signal travels over the borders via the Internet and only drops down locally for the final loop. Many businesses that rely on international communication as part of a daily operations stand to benefit tremendously from a financial point of view.

Unfortunately, the VoIP systems across the world are not interconnected. Two SIP providers will not be able to directly connect to each other over the Internet using only a telephone number as the go-between addressing system. This is because there is no way to tell a VoIP subscriber merely by looking at the telephone number. One way is for people to start using SIP addresses which are the internal addressing system of most standardized VoIP phones. But if you want to stick to the traditional telephone number, we need to have a public ENUM database that maps all known VoIP numbers to their SIP addresses. This way, to SIP providers will be able to make a VoIP connection entirely over the Internet without ever dropping down to the PSTN system and in that case, the VoIP call is free!

Contact your SIP provider to find out how you can get started today with a minimum of investment in hardware.

Bhagwad is an expert consultant on VoIP phones. Find out more here. He also specializes in VoIP telecommuting. Click to learn more.

Source: EzineArticles
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