Voice over Internet Protocol (VoIP) has revolutionized the way we communicate with each other. It offers a cost-effective and flexible alternative to traditional phone services, enabling individuals and businesses to make and receive calls over the internet. However, not all VoIP pricing models are created equal, and capacity-based pricing is often much cheaper than extension-based pricing. In this blog post, we will explore why this is the case and the benefits of capacity-based pricing for VoIP users.
First, let’s define capacity-based pricing and extension-based pricing. Extension-based pricing is a common pricing model used by many VoIP providers, where users pay for each individual phone line, also known as an extension. For example, if a company has ten employees, they would need to pay for ten separate extensions to support each user. Capacity-based pricing, on the other hand, charges users based on the number of simultaneous calls they make, rather than the number of phone lines or extensions they use.
Here are some of the key reasons why capacity-based pricing is much cheaper than extension-based pricing:
No Wasted Resources: Extension-based pricing requires companies to pay for all phone lines, whether they are in use or not. This means that a company may be paying for phone lines that are not being used, resulting in wasted resources and higher costs. Capacity-based pricing eliminates this waste, as companies only pay for the number of calls they make at any given time.
Scalability: Capacity-based pricing allows companies to scale their phone system according to their needs. As their business grows, their call volume may not substantially increase, they can add more users without incurring additional costs. When the time comes to expand total capacity, the price then increases. This scalability is not possible with extension-based pricing, as companies would need to pay for every additional user as they are added.
In summary, capacity-based pricing for VoIP is much cheaper than extension-based pricing. It eliminates wasted resources, provides scalability and flexibility, and reduces maintenance costs. For these reasons, it is a popular pricing model among VoIP users. If you’re considering VoIP for your business, it’s worth exploring the benefits of capacity-based pricing to see if it’s the right choice for you.