Will the Price of VoIP Go Up Or Down?

VoIP has changed a lot over the last ten years. It was once only possible to communicate over VoIP from a computer to another. Now different versions of VoIP, such as VoIP phones have made it possible to use the technology just like a telephone.

Ever since VoIP's inception there have been free ways of using it. This is still the case, and possibly always will be. There are also many other options though, from fairly basic VoIP designed for home use, to complex business VoIP solutions. In part due to the improvements of internet connections, VoIP quality has significantly. High quality VoIP does cost more but is still usually cheaper than the equivalent telephone service. Over time some VoIP has increased in price, but there are still cheap alternatives.

The increasing popularity of VoIP could help keep prices down. With more people using it VoIP providers are sometimes able to reduce prices. The number of VoIP providers has increased massively over the last five years, so the market is much more competitive. Providers have to compete for business, something that reduced prices can help to generate.

Some factor could see prices rise, though. Services are becoming more advanced, and a better product usually means that you pay more. More advanced features may cost providers more, something they have to pass onto customers. There have been vast improvements in the call quality when using VoIP and better quality means people can expect to pay more. If improved technology can be used by providers, and it costs them more, they will also pass this onto their customers. Business VoIP is something that is becoming particularly more advanced. Some of the services available are fairly impressive and therefore cost more.

So what does the future hold in terms of the price of VoIP? Much like the last few years, certain VoIP services will increase in price while others will go down. The price differentiation will depend on the service you are buying. Services that are further enhanced than what is currently on the market and anything that costs providers more are likely to see an increase. As with most products, though, once on the market for a while these prices will fall. The competitiveness of the VoIP market could help keep prices down and even reduces them in some areas. Basis packages are likely to remain cheap.

VoIP is likely to continue improving in the future, both in terms of the call quality and the types of services available. Although some prices will increase due to this, it is likely to remain cheaper than telephone services. This is the main selling point of VoIP, and providers increasing their prices too much could lose them business.

Andrew Marshall (c)

Interoute is a quality VoIP Provider.