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Explain it like I'm 5: Why is everyone on speakerphone in public?
(arstechnica.com)
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For me, speakerphone goes on temporarily if I need multiple people to be able to both listen and speak to an existing conversation.
Otherwise, they join the call on their own devices.
I find holding a phone up to my cheek really annoying though; I could see secondary exceptions for people with wireless headphones whose batteries had just died.