How VoIP Saves You Money

How And Why VoIP Will Save You Money

The current financial climate makes it absolutely essential to keep an eye on money, unless you happen to be a multi-millionaire. Even then you never know when you might lose a lot overnight, so it makes sense to be vigilant. For most of us, in any case, the avoidance of unnecessary expenditure is an essential part of life, and most of us are reflecting this in our choices with regard to food, transport, banking and other aspects of life. Communication might sometimes go under the radar – as anyone who has had to pay a teenager’s cell phone bill can tell you – but by picking a more financially sound way, you can make big savings with the right choices.


How Does VoIP Save You Money?

The short answer is that VoIP calling plans have lower costs, and many VoIP companies offer free calls to a range of destinations so you only need to pay the subscription fees. The longer answer is a tad bit more technical, but worth explaining because many people won’t trust a deal that looks too good to be true until they “see the strings”. So, here goes:

The old way, and the way that most people still use, to make a phone call involved a phone that was plugged into the wall in your home. The information involved in this call – initially the number you dial, and then the conversation that takes place – is transferred down the line to its destination. Along the way it will pass through as many telephone exchanges as it takes to get to the person you wish to speak to, at each stage literally switching circuits until it gets to its destination. Your voice, and all the other information captured by your phone, is transmitted by wire, all the way from New York to Dublin, from Toronto to Rome, or wherever else it needs to go.

VoIP calling is carried out differently; effectively your voice is encoded and transmitted in the same way that web pages are routed to a server by a system known as “packet switching”. It has taken science some time to come up with a system that can efficiently and clearly transmit voice information in this way, and to this day it requires a quite fast internet connection. But it requires less in the way of physical transfer of information, fewer wires and less work than the old way of making calls and therefore it costs less to operate. Because it costs less to operate, it means that costs can be lower for you, the caller.


How Much Can It Save Me?

The golden question that will govern most people’s decision about something like a phone service provider: What can I expect to be the difference in my bank balance at the end of the month? The answer to that question is that it depends on so many factors that an actual number would be pretty arbitrary. However, if you want to know what you will save, get a copy of your landline phone bill. Look at what you are paying for line rental; you can cut that right down, in some cases to as low as $5. What are you paying for calls? With the right plan, you can have a service that gives you unlimited free calls to anywhere you’re going to be calling often.

Even if you make calls all over the world, or exceed the free minutes’ allowance, the cost of calls outside of the free allowance is unlikely to exceed three or four cents a minute. People who are used to monthly phone bills that cost them around a hundred dollars can legitimately expect to cut that amount down to about a third of what it is now. Bonus features that either cost a lot extra, or are not available at all, with a standard landline provider are often packaged free with VoIP services, and can save you real money. It is a fact that if you pick any reputable VoIP provider you will save money on calls and line rental, and you may decimate what you were originally paying.


What About Hidden Costs?

Anyone who is watching their finances will very reasonably want to be uber-cautious when it comes to avoiding the extra costs that often pop up out of nowhere. And it is fair to say that with so many companies in the marketplace, there will likely be some who are intent on taking customers for a ride. The best advice is to ensure that you make comparison shopping a priority, looking at different providers and what they offer up front. Also consider that there are VoIP companies who run a virtual billing system, allowing you to look at your statement of costs right up to the minute; no waiting for the bill to land in your mailbox, so no nasty surprises when it does arrive.

Any good VoIP provider will run a choice of plans from which you can pick, so you can tailor your calling plan to your needs. If you make a lot of calls abroad, then there are international call plans which allow you a lot of, and sometimes unlimited, free calls to international destinations. The same applies to people or businesses who call solely within their home state. You will pay accordingly – the price of a plan that lets you have as many calls as you like to Dubai from New York will naturally be more than one that allows you the same amount of calling to Manhattan – but the key point is that it will still represent a saving on your standard landline.


In Summary…

VoIP is cheaper than the other ways of making telephone calls. It is also a world more convenient – as long as you can log in you are able to take your phone number with you – and considerably more flexible than standard telephony. As time goes on, the technology becomes better developed, and the sound quality of calls – already compared favorably with landline technology – will get better still. To save money and improve your service is a deal that anyone would willingly take.

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