Digital phone services are offered through local phone companies, cable companies and broadband Internet service providers, typically as part of a bundled package with cable television, high-speed Internet access and in some cases cellular telephone service. The digital phone services offered by these providers are actually just re-branded Voice over Internet Protocol, or VoIP, Internet phone services.
Prices for digital telephone service tend to be higher than that of pure VoIP services, with the cost difference typically justified by higher voice quality, the established reputation of digital phone service providers, and the convenience in having multiple services offered and billed by one provider. See "The Difference Between VoIP and PSTN Systems" in the Did You Know... section of Webopedia.
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