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Savings with VoIP

Want to know how you can save money by switching to a VoIP service provider? The exact number depends on the service you use now and which VoIP service you will switch to, but regardless of the exact number, you’ll probably save money.

Check out our chart below to get a better idea of what you can expect in terms of savings with VoIP. As you can see, VoIP rates start very low, so no matter which service you choose, you will save money.

How does VoIP save you money?

You can save money with VoIP in lots of ways:

  • VoIP is a very cheap phone service when compared with other service providers
  • Included long distance domestic calling
  • Very cheap international calling
  • Free calling to other subscribers of the same VoIP service
  • Lots of features for free

Cheap VoIP Monthly Plans

How can VoIP providers charge you so little? You can use VoIP for cheap telephone service because of how VoIP works. VoIP technology uses the Internet to send calls. It is very cheap and easy to send calls over the Internet because calls are sent as highly compact binary data which is easy to send over a long distance.

VoIP is also taxed very lightly because the government considers VoIP to be data transmission rather than voice transmission.

And VoIP service providers pass these savings onto you. When you compare rates with VoIP companies side by side with rates from traditional telephone companies, it is clear what a big difference these little factors make. For example, a Verizon Freedom Value plan costs $57.99/month. Compare this to a Home Phone Plus plan with Phone.com for $6.99/month.

Included Long Distance

Most VoIP services include unlimited domestic long distance. This means that you don’t pay any extra fees for out of state calls like you would with other telephone services. You pay a single flat monthly rate for all of your local and long distance calling within the US.

If you used a traditional telephone service or a dial around service for your long distance calling, you could end up paying up to $0.10/minute for your out of state calls.

Cheap International Calling

If you do a lot of international calling, you can save money by switching to VoIP. All VoIP services are able to offer cheap international calling because when you use VoIP there is effectively no difference between a local and long distance call. It costs almost nothing to send a call over the Internet. The only fees you accrue with cheap international calling come from connection fees which can sometimes add up with overseas calling. But even with these fees, international calling with VoIP is still extremely cheap.

Consider the following: if you needed to make a call to Japan, that call would cost you $2.49/minute with Verizon standard international rates. With ITP, a residential VoIP service, that call would cost  $0.039/minute.

And many VoIP service providers include some international calling specials. For example, VoIPo gives you a free hour of international calling time when you sign up for a monthly plan at a rate of $5.38/month. And many VoIP providers will include calling to certain countries for free. Most often, this includes Canada and sometimes Mexico.

Free Calling with Other Subscribers

Most VoIP services allow you to make free calls to other subscribers with that same service. This is why you can download and use a service like Skype to call other people on Skype for free. In most cases, this is a worldwide offer. That is, you can call any subscriber anywhere in the world for free. If you have family in other countries, you stand to save money by convincing your relatives to get a subcription to the same VoIP service that you use.

Free Features

VoIP services come with lots of great features like call forwarding, Find Me Follow Me, and voicemail. With other phone providers, you would have to pay extra for all of those features. A plan with Comcast that includes all of the same features as a basic VoIP plan would cost you $34.95/month with their Local With More plan. Compare that to the VoIP plan prices we’ve mentioned before.