how can cell phone companies afford to give free long distance calls?
like with mine i get so many minutes per month, calling local or long distance is the same, i dont pay extra for long distance like with a home phone, how do they do it?
- 2 months agoFavorite Answer
Significant distance" isn't generally a thing any more. Rather than what might be compared to a couple of copper wires from one finish of the nation to the next (a limited asset and moderately costly), your call is digitized, broken into parcels and sent over high limit networks as though it was some other bit of web information, costing close to nothing all in all. In the event that your home telephone administration is as yet charging for significant distance inside the nation they're scamming you.
- 2 months ago
It costs the telephone company much more money to get the call from point A to point B, on top of the extra cost of setting up all the equipment and space stations. They gota make the money back some how. Also, similar to how the universe is always expanding it works like this. Even though we can see the furthest light back in time about 13 billion years ago, that galaxy if still around is now 30 billion light years away instead of 13 billion because the universe is expanding faster and going in the opposite direction of the light that's coming to earth. We are also moving away from that galaxy fast too. The call works in that manner, with long distance.
- 2 months ago
As was previously mentioned, technology has grown exponentially over the years. Instead of a pair of wires running (electrically) from one end of the conversation to the other, tech was able to put the info onto radio waves (microwave) which then gave way to fiber optic which can carry many conversations on just one fiber alone. Let’s no forget satellites which can relay conversations from one hemisphere to another without wires. Then there is the ‘internet’.... people on one continent can take subscribe to a domestic number in the USA and make calls from their computer around the world. (This how most of the foreign scammers call you.)
The bottom line is that while modern tech can be expensive, when that cost is divided by the number of calls that can be handled, talk really is cheap today. The cell providers are making mega-profits while still appearing to ‘give’ stuff away.
Sidebar: My wife and I carried on a long-distance romance 50 years ago to the tune of $0.35 cents a minute on a landline. (Minimum wage was $1.65). I can’t believe how things have changed in my lifetime.
Technology has evolved, and there's little difference between a local or a long distance call anymore as far as what the phone companies have to do to route the call. International calling still has some of the old limitations so those calls cost.
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- garryLv 52 months ago
easy , cost of home phone connection , eg a home phone is $35 a month plus call costs , cell phones are $40 a month with $500 worth of calls , has the wire for the home phone paid itself off !!! Only has a cll phone and no home phone , its the cheapest option .
- PLv 72 months ago
Simply because it doesn't cost them anymore with digital switching. Just like you don't pay more to access a locally hosted website vs one 1000 miles away.
- LLv 72 months ago
They aren't giving anything away... you just don't see the charge because it is buried in another line item on the bill.
With cellular carriers, they know their end users. Most text vs make calls, local or long distance.
They used to charge for long distance in areas where area codes to some areas of the same city was considered long distance. In time that was changed, and then, if the area code was the same city, even if different, became local, then between counties, then regions all became local. Finally after awhile, all the carrier's did away with local only or regional only plans, and domestic (being at the start the Continental United States), and later included Alaska, Hawaii and Puerto Rico.
How they do it is cost averaging the calls, local vs long distance, and charge plan rates that cover the cost, with most people making few in any real long distance calls during a billing period. Add to this that now days, all costs and fees are bundled into each plan type, postpaid, prepaid and pay as you go, so the consumer is now paying those state, local and federal taxes and fees, where the carrier's used to pay most of them.
Also they know people in general don't read or understand half of what they read, when it comes to phone plans. This is why so many people get the cheapest plan, that looks like it offers unlimited data, when it really offers 2mb to 3gbs of high speed data, and once you hit the max, it either slows down or shuts off data, until reset, or more is paid, in the case of pay as you go. The addicts, will pay and pay, to stay connected or to keep texting, talking, even if it cost 3 times what a true unlimited plan would.
And that is why and how, year after year the cellular carriers, rake in the profits that they do. Along with the above, the carriers, are no longer subsidizing cell phones and other cellular equipment. The consumer pays full retail, whether up front, or in monthly installments.
So you're paying for it, without knowing it.
- Anonymous2 months ago
"Long distance" isn't really a thing any more. Instead of the literal equivalent of a pair of copper wires from one end of the country to the other (a finite resource and relatively expensive), your call is digitized, broken into packets and sent over high capacity networks as if it was any other piece of internet data, costing next to nothing in the grand scheme of things. If your home phone service is still charging for long distance within the country they're ripping you off.
- Jewel LittlenutsLv 72 months ago
There used to be more phone companies and they all merged and there's now a few large ones, with more money in them than there used to be.