About Free VoIP Phone Service

Let's talk about free VoIP phone service before we explore the freebies at the end of the page. Although some companies offer calls at no charge,  it does not mean they get it free nor do they lose a lot by doing that. 

I'm going explain with an example below why and how they do it. First it's vital to mention the methods of Internet phone calls. 

The methods

You know, all VoIP call is originated somewhere using a software or a device. In other words, when we place an Internet call we use one the following:

• a personal computer or laptop that's equipped with a VoIP soft-phone dialer and a headset

• a VoIP device such as Analog Telephone Adapter, VoIP gateway, IP phone and other types of hard-phones

• PSTN line - in the case of pre-paid calling card and call back 

• a smart-phone - with an app you install on your mobile phon to enable you make a call and instant message or text (known as mVoIP short for mobile VoIP)

The process 

OK we said you originate the call using one of the above method then what happens? The following process takes place:

• the call travels via the Internet to your provider's server / switch

• your VoIP provider receives the call and bypasses it to a terminator i.e another VoIP provider or LEC (Local Exchange Carrier) 

• at the destination, the terminator receives the call via the Internet and delivers it to your desired destination number

Let's use Skype as an originator example and AT&T as a terminator. When a user makes a call, Skype sends the traffic to AT&T. Then AT&T connects the call to user's dialed number.

The charge

Always the termination company charges the origination provider at a wholesale rate per second/minute. The origination company pays because it uses the terminator's local exchange carrier's physical telephone lines (PSTN). Here, it becomes not completely FREE.

The trick: how a company provides free calls and gets its money back

So we ask, why would any company offer free minutes if it pays for it? Let me answer you with the following story... 

Dialpad Communications Inc. was one of the first VoIP provider that started offering free computer to phone calls in 1999. Dialpad came up with an an intelligent way of doing a business. The company allowed its:

1. users tp download a soft-phone dialer from Dialpad's web site

2. users called any number in Canada and USA for FREE

Dailpad's soft-phone application looked like this...

Now take a look at the words/banner on the top of the dialer "20% BONUS - on your first deposit". That is an advertisement. Dialpad placed commercial banners like that on the software. When users click on those banners, Dialpad and its partners made money. Just like sites would make a revenue through Google Adsense nowadays.

The end story? On June 13, 2005 Yahoo acquired Dialpad and the service was later replaced by Yahoo Voice. 

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The Pioneers

Following are some companies that used to provide similar freebies:

The above first VoIP pioneers held credit for introducing free VoIP phone service. Making computer to computer calls remain free. While Google allows you to make calls to North America free of charge with its Google Voice service; with any provider calling to a fixed or mobile telephones across the globe will cost you few cents per minute. 

Visit free VoIP providers link below to find out present top providers. 

Freebies by type of category/service

So, now you have an idea that service providers get their money back in one way or another. Right? Share your thoughts using the comment box below.

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You may be interested in the following related articles:

VoIP Basics

VoIP Phone Services

VoIP Solutions

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