VoIP Provider Savings: Cheap VoIP Solutions

A cheap VoIP service plan can save you hundreds of dollars per phone compared to your current landline phone service and is the primary reason for having VoIP service. Why is VoIP service cheap?

Federal, State and local governments have seen fit to saddle conventional phone companies with a wide range of access charges, taxes and regulatory fees. Your phone company does not choose to pay them, so naturally they pass these extra charges along to you every month. In additional to these fees you have to pay extra for features such as caller ID, call forwarding, and call waiting. Most residential phone bills are greater than $60 each month.

A typical landline service that includes the features noted above cost $35 monthly plus about $12.90 month for surcharges and taxes. Add on $19.99 for unlimited long distance and your service total is $67.90 per month.

What is great about VoIP service is that it's not subject surcharges or high government taxes that you may have with regular landline phone service. In fact, normally the only tax on a VoIP service is a 3% Federal Excise Tax. Also VoIP service providers do not charge additional fees for each feature. Instead there is typically flat rate monthly fee for your phone service which includes a wide array of features.

So if you are using a typical $25/month VoIP provider, your total monthly bill is going to run about $25.75 including taxes. That is it. No matter how many local and long distance calls you make from the USA to any phone in the USA or Canada (if you have this type of plan).

The table below shows a monthly price comparison between a VoIP service and a regular phone service. This will provide an example of the saving you can receive if you switch to VoIP:

If you are looking for a more in depth analysis for determining the total cost of ownership of a Hosted business VoIP Solution you can view our interactive ROI analysis spreadsheet here Building a VoIP Business Case - ROI analysis

Using VoIP service there is a significant saving plus you receive many great features for no additional cost. In summary, VoIP has the following benefits over regular landland phone service:

• VoIP is a flat rate service that may allow for saving of over $500 per year.
• VoIP service normally includes unlimited free local and long distance minutes.
• VoIP provides an assortment of feature as part of the monthly flat rate fee.

See our list of the Best VoIP providers.

Will cheap VoIP service continue? John Dvorak contributing editor of PC Magazine wrote this article The Coming Death of Cheap VoIP.