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Telephone numbers don't cost wholesale providers much, if anything, to obtain. This means they can be made available to end users for very little money.
The 'catch' (if you want to call it that) is that companies need to make enough money to run a viable operation in the long run. That means the directors need to make enough money for themselves (so they don't get frustrated and turn to McDonald's for a better paying job), their staff, and their infrastructure.
If the directors don't make enough money the company will likely collapse or be sold off. If staff aren't paid enough, there will usually be, at first, customer service failings and, later, delays fixing service problems. If the infrastructure is under-invested in, it's likely to be unreliable.
It's up to you whether you go for a cheap provider or a more expensive one. If you're buying services for a business to rely on, I think you'd be crazy to pay �1 for it. If you just want cheap outbound calls to contact distant relatives, you might as well try it and take a (small) gamble.
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