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7 Ways VoIP Saves Money on Your Phone Bill

Lower line costs

Traditional telephone services are transmitted over copper telephone lines - these are dedicated to the purpose, expensive and have a low bandwidth capacity, meaning limited calls per line. VoIP, however, shares more modern data networks using fibre optic cables. A single fibre pair is capable of carrying 500 million simultaneous uncompressed phone conversations. A single CityLink circuit is more than capable of carrying all of a business's data and voice requirements. To reflect this, most VoIP service providers have considerably lower line costs.

Lower call costs

The introduction of business grade VoIP services into New Zealand has enabled new world telephone companies that do not have direct access to the copper telephone network to offer quality telephone services. As voice calls converge on to a single broadband network the data generated by voice calls is almost insignificant compared with the growth in other data types, so voice services are becoming a 'minor' but important application running on a multi-service broadband network. The net effect is lower call costs, which will reduce even further when interconnection with traditional telephone infrastructure is phased out.

Great international rates

The economics of VoIP and the competitive environment this technology change enables invariably causes cost reductions and service improvements, and both have been very evident in the international voice market.

High-end features

Modern IP-PABXs are smaller, cheaper and much better than their PSTN predecessors. They offer a wide range of features with interaction with other computer services. For instance, many IP-PABX's offer:

  • Unified Messaging, voicemail-to-email, presence awareness
  • IVR, auto-attendant, skills based routing
  • Conference call bridging

 

Mobile trunks (IP-PABX only)

Calling from landlines to mobiles is often a significant component of a phone bill due to high call costs. An attractive option for those implementing IP-PABXs is a SIP mobile trunk gateway, this device easily attaches a "mobile phone" to the IP-PABX which can be used for making outgoing calls. This mobile phone could be part of a group calling plan giving significantly lower costs for calling between desk based and mobile staff.

Portability

A softphone application on a laptop and voice over the Internet means that anywhere you have a broadband Internet you can have your IP-phone, that can greatly reduce call cost and increase productivity when travelling.

Lower equipment/system costs

The use of standard IP protocols for voice have enabled much greater development in the IP-PABX space, and companies are now using open source software to create highly advanced features at much lower cost. These devices are now a fraction of the size and cost of PSTN PABXs but offer much greater functionality.