With the New Year approaching, the opportunity to save money in 2013 is very enticing. One way that businesses can start the New Year off with more money in the bank is by making the simple switch to VoIP. VoIP provides businesses with an affordable phone service, which utilizes the Internet rather than traditional phone lines.
Switching to VoIP helps users save money each month, as VoIP users have reported paying 80% less on their monthly phone service. Consider the story of the debt settlement service, Ethical Management Solutions, which decided to change its service over to VoIP provider RingCentral . Prior to making the switch, the small business was paying between $8,000 and $9,000 per month for a service for 20 employees, but after making the switch to VoIP, the company now pays just over $1,000 a month.
Another way that VoIP users will notice a significant change in their monthly phone bill is through the price of long distance and international calls. VoIP offers long distance calling at a fraction of the price of traditional phone services because the majority of the voice and data information travel over the Internet rather than through a PSTN line. When data is sent over the Internet, it is much cheaper than traveling through a standard phone line.
VoIP services such as Vocalocity charge just $.03 per minute to make international calls to China, while traditional phone services like AT&T charge $3.52 per minute to wireless phones in China on a dial pay-per-use rate.
A customer could also get an international plan added on to their regular phone plan with a traditional provider, but even then a 20-minute phone call to China could cost around $3.60, while VoIP users would only pay around $.60 for the same call. One call may not break the bank, but multiple international phones a week could significantly rack up when users are not on a VoIP service plan.
A customer can also save on interstate, intrastate and service area calling as well when they switch to VoIP. Standard phone services split up calls into several different types:
1.) Interstate calls: State-to-state calls, like Florida to Georgia.
2.) Long distance calls: State-to-state calls, like New York to California.
3.) Intrastate calls: Phone services may also tack on fees for making calls to different areas within a state, such as San Francisco to San Diego.
4.) Service area calls: Calls to locations in your state or even in your county that are too far away to be local calls.
With all of these looming extra charges, it’s no wonder that phone bills with traditional companies can reach hefty prices. With VoIP services however, essentially any call becomes the equivalent of a local call, so there are no extra charges for calls of different types. VoIP providers often offer unlimited calling within the United States and Canada, which eliminates these in-state and out-of-state calling charges. For example, 8×8 , a business VoIP providers, offers an unlimited calling plan starting at $22.99 per month. With a plan like this, VoIP users can make calls to and from anywhere in the US without piling up additional charges.
There are also fewer taxes associated with VoIP than with traditional phone companies. The government applies heavy taxes to standard phone services, but because VoIP phone calls travel over the Internet rather than a traditional phone line, the government does not need to tax VoIP providers quite so heavily. This means that customers in turn have to pay less in taxes.
Right now, the only significant tax on VoIP service is the Federal Excise Tax, which is 3% of the cost of service. Compare this to Verizon, which charges a State Transaction Privilege Tax, State Utility Gross Receipts Tax Surcharge, and state and local sales taxes. One study from the Heartland Institute revealed that the average service taxes and fees associated with traditional phone services are twenty times higher than those associated with VoIP services.
Lower fixed monthly bills, eliminated calling fees, and fewer taxes are all ways in which VoIP users experience big savings. As the New Year rolls in, make switching to a VoIP provider a New Year’s Resolution. VoIP Review provides quality information and user ratings on the top VoIP services to help make the transition from a traditional phone service to a VoIP provider that much easier.