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Why is IP telephony less expensive than conventional calls?

conventional expensive IP Telephony
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Why is IP telephony less expensive than conventional calls?

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IP telephony converts voice into IP packages and also compresses these packages, so that they need smaller bandwidth to be transmitted than regular phone calls.

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IP telephony converts voice into IP packages and also compresses these packages, so they need smaller bandwidth to be transmitted than regular phone calls (PSTN).

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