Why is VoIP cheaper than a standard telephone line?

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Yesterday, Comcast came by to install their digital voice package at my apartment. Comcast has a special deal going on now: $24.95/month for 6 months, unlimited long distance. Skype’s even cheaper — $3/month for outgoing calls and $5/month for incoming (when they’re up). But here’s what I’m wondering: why’s it so cheap? Why is VoIP cheaper than a traditional plain old telephone service (POTS) line? Or, put another way, why is a POTS line more expensive than a VoIP line? Read the rest of this entry »

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