Pure VoIP Vs. Telecom VoIP: Guidance From VoIP.com

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Pure VoIP service offers a better value over digital voice plans from telephone and cable companies. Standalone providers generally provide greater cost savings and more extensive features.

VoIP is available from standalone voice over IP providers as well as incumbent telephone and cable companies. Industry experts VoIP.com offer guidance on the price difference between pure VoIP solutions and those offered by the cable and telephone companies.

VoIP services vary widely from provider to provider, however there is an undeniable line in the sand that divides pure VoIP from the digital voice plans rolled out by the telecos. The average phone bill for a traditional line is $54 per month, while VoIP from the cable companies runs about $42, the telephone company's VoIP is roughly $33 and dedicated VoIP providers are $20. Since VoIP is more cost effective for providers, why aren't the savings being passed on to consumers who choose a bundled option from their cable or telephone provider?

The simple answer might be that it's easier to give consumers a break if you're not shoring up a century's worth of copper wire losses with new technology revenue. One way to do that is by squeezing premium prices out of VoIP consumers. A common practice is to offer very basic VoIP plans with few features and limited calling areas, prompting users to upgrade to more expensive plans. In comparison, companies that focus solely on VoIP solutions tend to offer more comprehensive feature sets and expansive calling areas for substantially less than their competitors.

Pure VoIP players are also well positioned to pass along cost savings because they don’t have to support the multi-million dollar advertising campaigns that their larger, more entrenched competitors do. They are more tech savvy when it comes to getting the word out, effectively employing less costly forms of advertising like viral marketing, product promotion through blogging, and internet search engine ranking.

Being comfortable with technology has benefits beyond marketing advantages, allowing VoIP providers to streamline their billing process. Electronically sent bills and automatic monthly debits cut down on personnel needs and postage expense. Companies that spend less on operating costs can afford to offer a better value to their customers.

While cable and telephone companies may seem like an easy option for VoIP internet phone service, standalone VoIP providers often provide better service at lower prices. Click here for more information on VoIP rate comparisons.


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Camie Gontier
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