products
products
sitemap
Fundamentals of VoIP
Technical Information
VoIP Solutions Information
VoIP Services Information
Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

Full Name
Email Id

sign up

VoIP Quote The Downward Trend

VoIP prices are lower than the traditional calls because of the efficiencies in the IP network that is not in the traditional telephone network.
Rate this Article
  Excellent

  Good

  Average

  Bad

  Terrible

rate

Current Rating

  • IP networks send data along different routes and so the data can reach the destination even if one or more routes are down. This is not possible with a traditional phone.
  • Most of the bandwidth of circuit switch networks is unutilized. IP network makes use of its bandwidth using multiplexing, compression, coding and other techniques not used in traditional networks. This improves voice quality.
  • IP networks and VoIP are not regulated by government bodies and do not come under the tax net whereas traditional telephone providers collect regulation fees and taxes from customers.
  • Long distance telephony is costly because of the maintenance costs. Maintenance cost of dedicated lines like circuit switched networks or frame relay circuits is passed on the customer this is in addition to the various regulatory fees and taxes.
  • The price war is among service providers that let callers connect from an ordinary handset to phone numbers around the world.
  • In the US flat rates offered to customer for calls within the US was $45 a month and now the rates are less than half of that.
  • Voip rates can be got for discounts or even for ‘by-the-minute’ rates to traditional telephone carriers across the world.
  • Voip quote is now $10 a month as voip service providers are looking to grab customers.
  • Broadband operators are trying to bundle VoIP as a part of their present service. This is further driving prices down.
  • The industry averages are $35 a month for residential plans. These include unlimited calls within the US. This includes most of the features like call waiting and forwarding, voice mail and other features.
  • Prices will still be lower if some of the features are not provided or if calls are limited within a geographic area.
  • Some providers include in the flat rate, international calls to specific countries for fixed amount of time.
  • Business connections too have seen a drop in plan charges. Vonage’s as well as other providers have reduced plan charges to $45.
  • In case of accessing traditional lines the cost factor is determined by how much the telephone company charges for “connection Fees”. This too had notices a major drop in prices as many major telephone companies have reduced their connection fees.
Dropping prices have affected the quality of service. The quality services offered to business and other enterprises are at higher cost. Also provides are signing QoS agreements with these companies to provide them the best services at the cost of residential connections. Analysts predict that anything lower than $35 is a temporary offer and may bound to increase after a customer base is obtained. The least estimated expenses of a provider on a single connection for unlimited local dialing and long distance dialing is around $22.

Related Articles
VOIP Service Providers Getting Smart
Find The Best Solutions For VOIP
Solutions For A New Lifestyle: VOIP
Managing Customer Voip Usage: Voip Billing Solutions

Bookmark this Page Email this to your friend Add this page to del.icio.us

Suggest an Article

Haven´t found the article you are looking for, please suggest your article. We value all your suggestions and comments

submit
Home        Privacy Policy    Disclaimer            Contact Us     Copyrights
©Copyright 2010 voiplobby.com All Rights Reserved. Read legal policy and privacy policy.