What is the reason behind expensive phone calls?

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In summary, long-distance phone calls are more expensive due to a combination of factors. These include the perception of higher value, leading to premium pricing, as well as the complexity and cost of building and maintaining a larger network for long-distance communication.
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Lila
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Hey everyone,

I would like the answer to the above question from an engineer's perspective. So what makes long-distance phone calls more expensive than local ones? I guess the distance over which the message must be carried, but what else? more complex demodulation techniques? bandwidht?

Thanks,
Lila
 
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One of the main reasons is marketing, - people perceive a long distance call to hold more value than a local call; as a result the communications operators are able to premium price long distance calls.
 
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Also, the infrastructure needed to build, integrate, and maintain a large-area network is more complicated (and more expensive) than that needed for a small-area network.

- Warren
 

1. What factors contribute to the high cost of phone calls?

The main factors that contribute to the high cost of phone calls include infrastructure costs, regulatory fees and taxes, and network maintenance and upgrades. Additionally, the use of advanced technology for call routing and transmission also adds to the overall cost of phone calls.

2. Why do international phone calls tend to be more expensive?

International phone calls are more expensive because they require connections between different countries and often involve the use of multiple telecommunication providers. This results in higher infrastructure and routing fees, as well as additional regulatory fees and taxes imposed by different countries.

3. How do phone carriers determine the cost of phone calls?

Phone carriers determine the cost of phone calls based on a variety of factors, including the distance between the calling and receiving parties, the duration of the call, and the type of call (e.g. local, long distance, international). They also take into account the costs mentioned above, such as infrastructure and regulatory fees.

4. Is there any way to reduce the cost of phone calls?

Yes, there are some ways to reduce the cost of phone calls. One option is to use a VoIP (Voice over Internet Protocol) service, which uses the internet to make calls and can be cheaper than traditional phone calls. Another option is to use messaging or video calling apps, which often have lower or no fees for international calls. Additionally, some phone carriers offer discounted rates for frequent or bulk calls.

5. What innovations or developments could potentially lower the cost of phone calls in the future?

There are several potential innovations and developments that could lower the cost of phone calls in the future. These include advancements in telecommunication technology, such as the use of satellite networks or 5G technology, which could reduce infrastructure costs. Additionally, changes in regulations and policies could also impact the cost of phone calls, as well as the continued growth of alternative communication methods, such as video conferencing and messaging apps.

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