What is VoIP and Why VoIP Phone Calls Are Cheaper Than Regular Phone Calls?

What is VoIP?

Voice Over Internet Protocol, also called VoIP, is a technology converting your voice into digital data that can be transmitted over the Internet. Simply put, it’s a kind of phone service delivered over the internet. Whenever you have a VoIP software installed on any of your devices, you can directly make a call from your phone, tablet, laptop or others.

As 4G technology is widely used, VoIP has been increasingly applied in mobile devices for voice communications. With your cellular data or WiFi enabled, you can make or receive VoIP calls just like with the regular calls, but without paying anything to your phone operators.

How? Let’s explore together why VoIP phone calls are cheaper than regular phone calls.

What is VoIP and Why VoIP Phone Calls Are Cheaper Than Regular Phone Calls?

3 Reasons Why VoIP Calls Are Cheaper Than Landline

First off, VoIP calls are used based on Internet connection without any need to establish specialized system or extra hardware.

Traditional phone call system delivers voice communications based on traditional analog simulative PBX system. To use landline call, it’s first of all to have phone lines. It costs high amount of fees for telephone company to lay down lines and the fees have to be naturally shared by users. However, VoIP transmits voice communications through IP networks. Combining voice and data functions on a single network, there’s no need to provide extra lines for each line and service provider.

Second, not VoIP is cheaper but traditional landline is too expensive.

Traditional phone service provider is usually monopolized by the government. To quickly earn profit, they should charge high fees for users so that communication market can be captured in their hand. In addition, as hardware like distance lines, communication bases etc. needs to be prepared for users’ service, it’s understandable to accept the high cost of landline service.

Third, international calling fees are extraordinarily high for landline service.

As international calling is needed by the world due to globalization and increasing number of travelers, traditional phone call service providers fail to provide low-cost and convenient voice communication service. Although recent years have witnessed some cost-effective calling service plans published by landline companies, they can only be limited to one area alone, leading to much less convenience than what VoIP calling service provides.

Cheaper VoIP Calls Equal to Lower Sound Quality?

Not at all.

Compared with fixed telephone lines, VoIP tends to suffer from more interferences due to the Internet tunnel. Nevertheless, sound quality is also determined by service provider’s technology. If a call is made from a fixed number, the sound quality is similar with that by landline. If a call is made from a random virtual number, its sound quality may be worse due to many interferences. For example, Dingtone provides a US phone number to users and the same phone number can be constantly used until it is expired. Using the same number for each calling, the sound quality can be guaranteed.

Nevertheless, will landline keep high sound quality always? Definitely not. Worse still, if issues occur to a telephone line, voice communications will possibly be directly cut off and it’s extremely difficult to fix. That’s also catastrophe.

In Future, VoIP Calling Will be Even Cheaper Than It Is Now

Days ago, George, my nephew, came to my home and saw a piggy bank in the form of a telephone that is shown below.

What is VoIP and Why VoIP Phone Calls Are Cheaper Than Regular Phone Calls?

George pointed at it, asking “What’s that?”. “A telephone.” I replied. He felt so surprised that a telephone can look like that. In his mind, a telephone equals to a cell phone.

Even though we can’t confirm telephones will surely get out of date in future, we believe that VoIP calls will be more used in numerous industries and cheaper prices can be also expected due to wide application of Internet.


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