Question:

Why are calls to landlines from VoIP always more expensive?

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Compared to for example, Skype-Skype calls/Ekiga-Ekiga calls/Gizmo-Gizmo, etc.

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  1. The reasons are as follows:

    1.

    PC-PC VoIP calling is typically free because the calls are strictly using the Internet as the medium to transport the calls between computers and networks.  The cost of processing Internet calls is almost negligable.  It's just like sending a E-mail.  Sending e-mail is free too.  Whether the Internet traffic is E-mail, VoIP, file transfer, or web surfing, all the information is just data packets.  Internet doesn't care what's in the packets, be it voice or video or mail.

    When calls are between users of any given service like skype, Gizmo5, CallCentric, or InPhonex are free, it's because the VSP (voip service provider) is only incurring the cost of running a server that can process thousands of calls for next to nothing.  But they only do it for free because they almost all universally also sell "Premium Services".  Free is always a promotion to entice you to consider their paid services.

    Free calls between account holders is known as "In-Network" VoIP calling.

    In-Network calling is almost always universally free.  Many companies promote their service as allowing you to make free In-Network call as if they are doing something great and different..... when in fact almost all VoIP services allow free In-Network calling...  It's all about marketing...

    2.

    Any services that allow you to call regular PSTN (public switched telephone network) phones and cells, will generally have to charge you for making calls to and through PSTN networks and cells.

    Why?

    Because calls to PSTN phones have to route through the Big Bells and Baby Bells (ILEC's - Incumbent Local Exchange Carriers) and their competitors (CLEC's - Competitive Local Exchange Carriers).

    When was the last time a phone company gave you Free phone or cell service?  Well don't hold your breath... they never have and never will.

    The point being that when VoIP services need to route their calls over or through a PSTN telephone network, they have to pay Ma Bell (or Baby Bell) for access through their networks.

    And, that cost has to be passed on to you (and me), the consumer.


  2. I don't know what you got....but mine is totally free to over 40 countries!!

    I have the international package with Pakcet8 and love it!

    I pay per year, so I get a good deal!!

  3. VoIP services, like the ones to which you refer, do not pay the local phone companies for access to the local network.  Known as "the last mile", it is the cable and wiring from the switching center to the businesses, houses and apartments.

    Telephone and cable companies are franchises that have been awarded long-term or permanent rights to operate in their areas.  As such, to connect through the wiring and equipment to land-line phones, they are authorized to charge access fees.

    It is an average cost rate for governmental taxes and local network access that the VoIP companies have to charge back to allow the users to make connections to land-line telephones.  All this is determined by governmental decree for the governmental entity that regulates fees and taxes in the area you are calling.  That's why it costs different amounts depending on where you are calling, not necessarily a geographical issue.  It may be more expensive to make a call  to a land-line phone within your own country than it is to do so to a similar land-line phone half way around the world.

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