Why different rates for non-domestic calls?

[Hermes]

What is/are the reason(s) that most companies offering computer phone calls, including Fongo, limit no-extra-charge recipient numbers to *one country*, typically the country the company is headquartered in.

Is it a commercial (because they can , it reduces costs and increases profit to charge for other numbers), a legal, or technical reason? Or some combination? Is it purely business or something to do with gov't regulations and monopolies?

I read somewhere (maybe it is not true) that there is no technical reason anymore that a long-distance call should be any more costly than a call to your nextdoor neighbour.

[bridonca]

The cost depends on the peering agreement the telco has with the telco on the other end. There is also a profit margin to maintain. Telcos are here to get paid. But yeah, the actual cost is much lower.