The future adoption of voice over IP technology relies on its cost-saving potential.
Companies currently spend large amounts of their communications costs on long distance fees.
Voice over IP technology will first be adopted by the businesses which will gain the most by switching. Economically, the change in billing structure will be the most significant cost-saving factor. In the past, telephone service charges were based on the time used and the distance between the parties that were communicating. With voice over IP, carriers will have given overhead costs and time and distance will no longer be a factor. Customers will be charged a flat rate to cover the overhead costs.