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Next Big Thing?
VoIP Makes Cents




VoIP Service Providers Resource

VoIP Service Providers Resource brings you the latest and greatest information about this new emerging technology.

VoIP Termination

VoIP termination is a service provided by wholesale carriers to other service providers to start up, add to or extend the reach of their networks. VoIP termination service providers can typically terminate traffic at a lower cost than traditional time-division multiplexing (TDM) routes.

According to Internet giant Cisco, "The main growth area for VoIP is toll arbitrage. Toll arbitrage takes advantage of the ambiguous regulations in termination of IP traffic within countries and localities. Because of these regulatory disparities between regulated TDM traffic and typically unregulated VoIP traffic, VoIP can be terminated at a fraction of the cost of TDM traffic (check with local regulation authority for requirements for terminating VoIP traffic)."

Free VoIP Phone Systems Quotes from BuyerZone.com

Many small countries are starting to build packet-based networks right from the start. They favor VoIP termination over traditional termination since since VoIP termination offers a lower tariff cost and termination cost than traditional networks. Wholesale VoIP termination providers will gather traffic from many sources around the globe then terminate it locally for the local market price. Wholesale VoIP termination providers charge fees to transport and terminate data or voice successfully.


The cost for VoIP termination is based on transport, equipment, local PSTN fees, and any tariff imposed on the traffic plus VoIP termination services are a commodity in many markets, with rates typically based on capacity in the region, completion rate, QoS, and cost. Lowest cost, highest completion rate, and best QoS are the three elements that most service providers look for in a wholesale VoIP termination company. Since competition is stiff now, providers have many choices.

Some companies wish to get into VoIP termination in order to expand their present portfolio of offerings and do so by accessing several geographical areas and using them to transfer and terminate calls from VoIP to PSTN networks. Each geographical gateway receives VoIP calls in the form of data packets, converts them to analog signals and terminates calls locally to the PSTN network.

A wholesale VoIP termination setup usually includes a billing server, several gateways, a geographically tied presence with high-speed Internet access, support for H.323 and SIP protocols and contracts with several origination partners. The gateway is responsible for converting data packets to voice signals and vice versa. There is a certain risk for those dealing with in the wholesale VoIP termination market, especially when it can be a fluctuating commodity, but the rewards can also be quite impressive as well.


Get with the VoIP program and start saving money today!



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