3 reasons why VoIP is less expensive than traditional PSTN?

Different amazing advancements in technology have made VoIP a more desirable choice especially when it comes to effective communication, both within your businesses and individual usage. It’s considered as a multi-purpose, highly advanced, and cost-efficient technology which is set to greatly supersede the conventional telephones such as PSTN. So, the point is how VoIP could beat the traditional PSTN calls?

VoIP (Voice over Internet Protocol) is, generally, the quick delivery of voice services through the internet. There has been observed a dramatic improvement in the past 8-10 years in terms of popularity and effectiveness. Though, the technology is dated back to different experiments done by the US Department of Defence in the 1970s.

Traditional telephony vs VoIP:

As we all know that traditional telephony uses different circuit switching to connect two phone devices with the help of various exchanges. And when the circuit gets established, the route always remains the same for the overall call duration. As compared to VoIP, it connects phone devices and several portable technologies through a strong internet connection. But when it comes to costs, VoIP seems more affordable choice as most of the businesses especially call center solutions are relying on the services of best VoIP provider as they offer different benefits besides costs and features.

The PSTN (public switched telephone network) is basically a traditional network which is operated over the world through, local, regional and national service providers. This simple approach has also proven to be highly resilient and effective since its inception in the 19th Century. It has significantly evolved to exploit the digital technology in the overall process. But still, it has multiple limitations with regards to telephony features, its maintenance structure, costs and the industrial attitudes of the PSTN providers.

Variations in VoIP services:

VoIP services have different types. Like;

• Consumer levels calls are handled computer to computer via headset, such as Skype which is a common example.

• The second type is the Telephone network to telephone network solutions, in which we include the example of BT Broadband Voice. In this type, the caller required to use an adapter.

• The third type is, PC to telephone network calls, in which the caller uses the headset. So essentially, with 4G services, which are widely available now, the mobile devices also look viable for using with the VoIP technology.

Lower costs:

PSTN calls usually are basically under the control of either a private company or the government with the complete monopoly. They always rely on the charges for the total revenue and their activity of dominance in the domestic user market. So as a result, the VoIP looks 50% cheaper as compared to the conventional PSTN service, even with different providers offering free calls.

Most of the user's complaint that calling long-distance is much expensive with traditional telephone and it doesn’t fit in their budget. Though it doesn’t only require to opening the circuits, the greater the distance the call travels, the more circuits would be required to keep open for the call duration. However, an efficient VoIP service always relies upon the presence of a reliable quality internet connection for the majority of the call distance involved. Some extra costs would be those associated with voice termination, as the call will break out into the destination PSTN.