Since not everyone is connected to VoIP, the concept of "lines" is still
applicable since the call has to cross over to the regular PSTN network
at some point, and requires a line from one of few incumbent local
exchange carriers. An incumbent local carrier is the company that owns
the physical telephone wire. In essence a "line" is the same as a
"landline".

Although you don't have the same physical limitations with VoIP, a
VoIP-to-VoIP call will incur cost for the provider (man-hours, hardware
and bandwidth), but is minimal compared to interfacing with the
(hard-wired) PSTN network.

Imagine someone buying one subscription for $25, and setting up 50
simultanous calls (using 50 PSTN landlines)...
...or someone reselling that same subscription 50 times...

The reason why VoIP is cheaper than a regular landline is the fact that
a VoIP provider doesn't have to buy "the last mile" of cable into
everyone's house. Plus the fact that VoIP companies are not tariffed
like the big incumbent carriers of course.
A VoIP provider is merely an interface between the internet and the
physical landlines in most cases. If not, the provider is hosting a
private voice network.

Clear as mud?

-----Original Message-----
From: Ajay Krishnan [mailto:[EMAIL PROTECTED] 
Sent: Thursday, October 13, 2005 1:24 PM
To: [email protected]
Subject: [on-asterisk] VoIP PBX General Queries

Hi, I'm trying set up a VoIP PBX using [EMAIL PROTECTED], but in talking to
service providers, I've become really confused! To give you some
background, we are a small software company with < 20 employees. We
would like to host our Asterisk server in-house.

My main confusion is regarding the concept of "lines". In particular,
one service provider quoted a rate of $25 per line with unlimited
province-wide calling (long-distance extra). I always thought that
IP-based providers quoted prices as a rate/minute, and that the concept
of lines didn't exist?? I hope I'm making sense with my question!

Also can anyone recommend a provider for a company of our size?

Thanks,

Ajay

--
Ajay Krishnan
Savvica Inc.--Know Better
[EMAIL PROTECTED]
Toronto (416) 907-8618
London +44 (0) 20 7993 2895
www.savvica.com


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