First, there’s no need to lease lines. Before VOIP you need to lease lines from your local exchange carrier. For instance, usually each line has a start- up fee, as well as a monthly access cost in order to use each line. Moreover, you received usage charges for local and long- distance calls each month.
Sure the charge is fairly small, but when you consider how many lines your company has and how often each line is used you’ll be surprised at how easy small charges can climb up to millions of dollars a month. But with VOIP, the leasing fees can be significantly reduced.
Second, there are no extra regulatory fees. Aside from leasing fees, the conventional telephony models also have other regulatory fees. These other regulatory fees go to different governmental entities, such as 911 fee, and the Federal Line Surcharge. The total cost may costs about 4 to 7 percent of your total phone bill. However, in VOIP these fees are already included with the data network, so there are no excess charges.