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

Ever wonder how apps like Dingtone let you make super cheap calls—especially to other countries—without using your minutes or racking up a giant phone bill?

The secret sauce is VoIP, short for Voice over Internet Protocol.

Sounds technical? It is. But don’t worry—we’re breaking it down in plain English, so you’ll not only understand how VoIP works but also why it saves you money.

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. 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.

Let’s keep this simple.

VoIP lets you make phone calls over the internet instead of using traditional landlines or mobile networks. Instead of your voice traveling through physical wires or cell towers, it’s converted into digital signals and sent over Wi-Fi or mobile data.

Imagine turning your voice into an email that gets sent instantly. That’s basically what’s happening.

You’ve probably already used VoIP without realizing it. Apps like:

  • Dingtone
  • WhatsApp
  • Zoom
  • Skype
  • FaceTime Audio

—all rely on VoIP technology to connect your voice with someone else’s device, no matter where they are.

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.

Why Is VoIP So Much Cheaper Than Regular Phone Calls?

Good question. The price difference isn’t magic—it’s math and modern tech.

No Physical Phone Lines or Towers

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.

✅ Less hardware = lower cost = cheaper calls for you.

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.

Most VoIP services offer super low rates for calling actual landlines or mobile numbers. Some even let you earn credits through in-app actions (like watching ads or inviting friends). Try getting your carrier to do that.

Internet Is Already Paid For

Think about it. You’re already paying for Wi-Fi or mobile data. VoIP piggybacks on that connection, so there’s no extra cost for the call itself—especially if it’s app-to-app.

No Long-Distance or Roaming Charges

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.

Free App-to-App Calls

Using Dingtone to call someone else on Dingtone? That call’s totally free. It doesn’t matter if they’re in another city or another continent. As long as both of you are on the app, there are zero charges.

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.

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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