International Calling Costs: Everything You Need to Know

What are international calling costs?

At their core, international calling costs involve the cost, also known as the rate, of making an international call. Basic rates for international calls refer to the nondiscounted rates charged for making an international call from a landline phone without an international calling plan. You may incur additional charges if you place calls to mobile phones. 

International calling costs and rates depend on a variety of factors, but here’s the average listed by the Federal Communications Commission: The basic nonplan rate to place a call to China via AT&T is $5 per minute while the United Kingdom and Mexico basic rate is both $3.50 per minute. At those prices, it’s easy to see how costs for discussing routine business matters could add up quickly. As a result, you may want to invest in an international calling plan, which usually offers discounted rates.

What affects international calling costs?

International calling costs per minute vary based on your phone provider and plan, whether you’re calling via voice over internet protocol (VoIP) or a landline, and the countries — even the cities — you’re calling to and from. We take a more in-depth look and explain how these factors affect your international calling costs below.

Rate differences by country and city

International calling rates differ for each country. If you’re using VoIP, your costs will vary depending on which city within a certain country you call and if you’re calling a landline or mobile phone. See how Xfinity‘s rates vary between and even within the countries listed below.

Rate differences for VoIP vs. traditional phone lines

Your international rate also depends on the type of phone system you’re using; in other words, whether you’re using a VoIP setup or a traditional landline. In general, VoIP service and hardware costs are significantly cheaper than traditional hardwired systems, which is important to factor in when comparing international rates.

VoIP providers have a standard country rate — for both landline and mobile calls — but often have cheaper rates for cities that are popular for business calls. For example, although Phone.com’s VoIP rates for Mexico are generally around 12 cents per minute, they are only around 4 cents (less than half a cent) per minute if you are calling Mexico City. However, traditional landline providers offer the same rate for the entire country. So, whether you call Mexico City, Puebla or Tijuana, it will be 9 (less than 1 cent) per minute to call a landline.

Furthermore, your international calling rates and overall costs will vary significantly depending on the international calling plan your company purchases. Some providers offer plans where you pay an extra $5-$10 per month for a set number of free minutes to use on international calls. Plans like this can be a solid option so long as you read the fine print. Many of these international plans promise deals like “1,000 free international minutes” and then only work with certain numbers or specific countries. Do your homework or you might end up overpaying.

What are international numbers?

An international number is a phone number that allows your company to receive calls from many countries, even those with different dialing procedures, to one organized line. 

When setting up an international number, you can choose a virtual phone number or a universal international freephone number (UIFN). A virtual phone number, sometimes called direct inward dialing, redirects to any line of your choosing. You can also pair your virtual phone number with local or toll-free exchanges. A UIFN adds an extra digit to toll-free numbers so the new number can be used consistently throughout the world. A UIFN is especially helpful for branding purposes and vanity numbers. 

International numbers: Local and 800

There are two main kinds of international numbers: local and toll-free.

Local international numbers

Local international numbers are the most common, although each provider handles them a bit differently. If you obtain a local number in Mexico City with RingCentral, then your number will have the same area code as the locals. In this case, you won’t have to pay additional fees for incoming calls; however, you’ll still pay standard international rates for outgoing calls.

With Phone.com, you can obtain a local international number for around $4.99 per month in over 30 countries. The number will be local to the country, but international rates will apply to both incoming and outgoing calls. Customers calling from their local areas only have to pay local rates instead of international rates. This is the most popular and easiest international number to purchase.

International 800 numbers

International 800 numbers are less common and not all providers offer them. They are also a little pricier than local international numbers. For example, RingCentral charges nearly $15 per line per month. It’s much like a United States 800 number, only within another country. Anyone calling your international 800 number within their country does not pay any call fees. Consequently, you still pay international rates for outgoing and incoming calls. Businesses that want an added sense of class and professionalism may opt for an international 800 number.

How you can save on international calling costs

Now that you know the basic costs involved with international calling and international numbers, you’re probably wondering: How can you keep those fees as low as possible for your company? Follow these steps to ensure your business pays as little as possible for international calls:

1. Evaluate your business phone system as a whole: International calling rates are only part of the larger picture. You may be offered good international rates but only if you accept high monthly service fees. If that’s the case, you aren’t saving at all. Evaluate all areas of your phone system with a big-picture lens to see where you can save. Make sure to compare traditional phone systems to VoIP phone systems. In most cases, VoIP will be significantly cheaper than traditional landlines.
2. Be willing to leave your current provider: Odds are you already have a business phone provider. However, they might not be the cheapest option for international calling. If your company will be making a lot of international calls and you truly want to limit your costs, you should at least reconsider your current phone service provider. Shop around to see if you can find one that can save you money on international calls. It may be a hassle in the short term but, in the long run, you stand to save a solid chunk of change.
3. Find a provider that has low rates in the areas you call most often: All phone companies have different rates for each country. The fact that X phone company has great rates in Cuba doesn’t help your business if the majority of your international calls are going to Singapore. Choose the vendor that has the lowest rates for the specific countries and cities you’re calling.
4. Read the fine print and ask questions: Many phone providers advertise great international rates and plans, but when you read the fine print, those rates are for restricted countries, and they charge higher rates for certain places or phone numbers. Do your due diligence to ensure you know what you’re signing up for.

Examples of international calling costs

As mentioned above, with VoIP providers, rates differ depending on which city and country you call. Take Brazil for example: Mobile rates are the same in Brazil across the board. However, landline rates do vary depending on which city you’re calling:

• General rate to call Brazil: 6 cents
• Rate to call certain Brazilian cities, such as Rio de Janeiro, Sao Paulo and Belo Horizonte:9 cents 

Now, let’s consider another example. Say, for example, that you’re making an international call to a supplier in Mexico. The chart below shows how your rate will vary depending on which phone provider you use, the type of phone system you have and whether you’re calling a landline or mobile line.

As this example demonstrates, it’s best to shop around for rates that make the most sense for your company’s international calling needs as the cost difference could be quite significant.

Kimberlee Leonard and Sean Peek contributed to this article.