 Flatrates: Definition & role for cloud telephony | NFON Knowledgebase     

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### Flat rate

[The various flat-rate tariffs of telecommunications providers](/en/get-started/cloud-telephony/lexicon/knowledge-base-detail/flat-rate#section-3)

A flat rate is a special tariff model, in which certain services are paid for at a set fee, regardless of the amount they are used. This tariff model is often used with telecommunications services, such as telephone calls or Internet access. In contrast to tariff models that are volume or time dependent, a flat rate is not one where the fee payable is calculated according to the actual usage of the service. Originally used mainly in the telecommunications market, today flat rates are available for many kinds of services or products.

### The various flat-rate tariffs of telecommunications providers

The flat rate for phone calls can be limited to different types of use. While some flat rates include phone calls to all national networks, others may be restricted to calls within the fixed-line network or within certain mobile networks. Flat rates for unlimited international calls to certain countries or regions are also available.

A flat rate for Internet access includes the Internet connection itself and the transfer of an unlimited volume of data. It is now common for some network providers to protect themselves against intensive use by reducing the maximum speed of data transfer for the remainder of the month once a certain monthly data volume has been exceeded. Even though, in this case, they are not offering a truly flat rate, the tariffs are still advertised as being exactly that. While these volume-limited flat rates are rather still rare with [DSL](/en/get-started/cloud-telephony/lexicon/knowledge-base-detail/sdsl-shdsl) or cable network connections, this tariff model is predominant with mobile phone networks.

When using [Voice-over-IP telephony](/en/get-started/cloud-telephony/lexicon/knowledge-base-detail/voice-over-ip) it is important to be aware that various tariff models exist and that billing will be affected accordingly. As VoIP calls are transmitted over the Internet, users must be mindful that in addition to the cost of the phone calls, the Internet usage and data traffic volumes are also billed for. Therefore, in order to ensure that calls are not billed through two different tariffs, VoIP users are advised to opt for a flat rate Internet connection that has no volume limit. In this situation VoIP usage is only charged for on the applicable VoIP tariff.

### Related Articles

### Voice over Internet Protocol (VoIP)

PSTN stands for Public Switched Telephone Network and is generally known as the traditional phone network. It has been connecting people since the late 19th century, at first over copper telephone lines and later using fibre optic cables, satellites, and undersea cables. All of these are interconnected by switching centres which establish a dedicated connection – or circuit – between callers.

Voice signals can then travel over this circuit. When the caller speaks into his handset, the caller’s phone translates the sound waves into electrical signals. These are transmitted over the PSTN (converted to optical signals for part of the way, so they can travel via fibre optic cables), and the phone at the other end of the line then translates the received signals back into sound.

The arrival of **Voice over IP (VoIP)** technology – essentially, transmitting voice calls over the Internet rather than the PSTN – challenged traditional telephony and fundamentally changed how people communicate.

 [Voice over Internet Protocol (VoIP)](/en/get-started/cloud-telephony/lexicon/knowledge-base-detail/voice-over-ip)

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