How do cheap voip providers offer such low rates?

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Cheap VOIP-Enabled Services: Internet Voice, also known as Voice over Internet Protocol (Cheap VoIP), is a technology that allows you to make telephone calls using a broadband Internet connection instead of a regular (or analog) phone line. Some services using VoIP may only allow you to call other people using the same service, but others may allow you to call anyone who has a telephone number - including local, long distance, mobile, and international numbers. Also, while some services only work over your computer or a special VoIP phone, other services allow you to use a traditional phone through an adaptor.
What is VoIP/Internet Voice? VoIP allows you to make telephone calls using a computer network, over a data network like the Internet. Cheap VoIP converts the voice signal from your telephone into a digital signal that travels over the internet then converts it back at the other end so you can speak to anyone with a regular phone number. When placing a cheap VoIP call using a phone with an adapter, you'll hear a dial tone and dial just as you always have. VoIP may also allow you to make a call directly from a computer using a conventional telephone or a microphone.
Cheap Voip Service How Can I Place a VoIP Call? Depending on the service, one way to place a cheap VoIP call is to pick up your phone and dial the number, using an adaptor that connects to your existing high-speed Internet connection. The call goes through your local telephone company to a cheap VoIP provider. The phone call goes over the Internet to the called party's local telephone company for the completion of the call. Another way is to utilize a microphone headset plugged into your computer. The number is placed using the keyboard and is routed through your cable modem.

Cheap VOIP Providers faq:

What Kind of Equipment Do I Need? A broadband (high speed Internet) connection is required. This can be through a cable modem, or high speed services such as DSL or a local area network. You can hook up an inexpensive microphone to your computer and send your voice through a cable modem or connect a phone directly to a telephone adaptor.
Is there a difference between making a Local Call and a Long Distance Call? Some cheap VoIP providers offer their services for free, normally only for calls to other subscribers to the service. Your cheap VoIP provider may permit you to select an area code different from the area in which you live. This means you may not incur long distance charges if you call a number in your area code regardless of geography. It also means that people who call you may incur long distance charges depending on their area code and service. Some cheap VoIP providers charge for a long distance call to a number outside your calling area, similar to existing, traditional wireline telephone service. Other cheap VoIP providers permit you to call anywhere at a flat rate for a fixed number of minutes.
If I have cheap VoIP service, who can I call? Depending upon your service, you might be limited only to other subscribers to the service, or you may be able to call any phone number, anywhere in the world. The call can be made to a local number, a mobile phone, to a long distance number, or an international number. You may even utilize the service to speak with more than one person at a time. The person you are calling does not need any special equipment, just a phone.
What Are Some Advantages of Internet Voice? Because cheap VoIP is digital, it may offer features and services that are not available with a traditional phone. If you have a broadband internet connection, you need not maintain and pay the additional cost for a line just to make telephone calls. With many cheap VoIP plans you can talk for as long as you want with any person in the world (the requirement is that the other person has an Internet connection). You can also talk with many people at the same time without any additional cost.
Cheap Voip Service What Are Some disadvantages of Internet Voice? If you're considering replacing your traditional telephone service with VoIP, there are some possible differences: Some VoIP services don't work during power outages and the cheap voip provider may not offer backup power. Not all cheap VoIP services connect directly to emergency services through 9-1-1. Cheap VoIP providers may or may not offer directory assistance/white page listings.
Can I use my Computer While I talk on the Phone? Yes.
Can I Take My Phone Adapter with me When I Travel? You may be able to use your cheap VoIP service wherever you travel as long as you have a high speed Internet connection available. In that case it would work the same as from your home or business.
Does my Computer Have to be Turned on? Not if you are making calls with a phone and adaptor or cheap VoIP phone, but your broadband Internet connection needs to be active. You can also use your computer while talking on the phone.
How Do I Know If I have a VoIP phone Call? It will ring like any other call.
Cheap Voip Service Does the FCC Regulate Cheap VoIP? The Federal Communications Commission (FCC) has worked to create an environment promoting competition and innovation to benefit consumers. Historically, the FCC has not regulated the Internet or the services provided over it. You should always check with the cheap VoIP service provider you choose to confirm any advantages and limitations to their service.
How CheapVoIP / Internet Voice Works? VoIP converts the voice signal from your telephone into a digital signal that travels over the Internet. If you are calling a regular phone number, the signal is then converted back at the other end. Internet Voice can allow you to make a call directly from a computer. If you make a call using a cheap VOIP phone with an adaptor, you'll be able to dial just as you always have, and the cheap voip provider may also provide a dial tone. If your service assigns you a regular phone number, then a person can call you from his or her regular phone without using special equipment.
Additional Considerations for cheap VoIP calls: If you're considering replacing your traditional telephone service with VoIP, there are some possible considerations you should be aware of:
• Some VoIP services don't work during power outages and the cheap voip provider may not offer backup power;
• Cheap VoIP providers may or may not offer directory assistance/white page listings. Aspects of these considerations may change with new development in Internet Voice technology. You should always check with the potential cheap VoIP service provider to confirm any advantages and limitations to their service, including E-911 service.

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If you've never heard of Cheap VoIP, get ready to change the way you think about long-distance phone calls. VoIP, or Voice over Internet Protocol, is a method for taking analog audio signals and turning them into digital data (IP packets) that can be transmitted over the Internet.

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