in this article we will look at how companies make money from voip or voice over internet protocol.
this will give you some insight and a lot of information about how to build your own voip company and make money.
I have a business class VoIP account that was setup back in October for a project that my spouse is working. Probably 90% of her calls are outbound to standard landlines or cell phones within the 48 continental states. (These are not sales or tele-marketing, they're related to technical system installs) She's averaging about 2,500 minutes per month, combined outbound and inbound.
Other than the monthly fee that is paid to the provider, how does the provider make money from these calls? Does a provider may anything for 1) origination of the call, 2) transport, 3) termination.
Thanks in advance for your info -
Each provider is different, but in general the majority of the income is from the subscription fee. Providers who are also CLECs MAY be able to receive reciprocal income from calls coming into phone numbers they "own" and "terminate" to their own users.
That's about it, everything else (originating outgoing calls, transporting them, etc.) costs the provider money.
As nitzan said, some providers may derive some income from incoming calls, but revenue is mostly from the monthly fee.
If a provider is paying 0.8 cents per minute for termination (a guess, here, but I think the big players can meet or beat this rate on average), then 2500 outgoing minutes is $20. Incoming is likely covered by the origination backchannel fees and essentially "free" to the provider. There are infrastructure/bandwidth/E911/phone number costs involved for the providers, too, so their cost might be a little higher than $20. I imagine your "business class" line is more than $25, so your provider is likely happy with you as a customer.
Now, read the fine print-- the part where "unlimited" is defined as "unlimited within certain usage limits" and that users who average upwards of 3500-5000 minutes, a.k.a. a point where they would become unprofitable, are disconnected or billed overage.
Margins can be pretty thin for heavy users, but there are also a considerable number of subscribers who are below 1000 (or even 100) minutes a month.
this will give you some insight and a lot of information about how to build your own voip company and make money.
How do companies make money on VoIP?
How do Telco's and VoIP companies that offer unlimited outbound VoIP (or other voice) services make money?I have a business class VoIP account that was setup back in October for a project that my spouse is working. Probably 90% of her calls are outbound to standard landlines or cell phones within the 48 continental states. (These are not sales or tele-marketing, they're related to technical system installs) She's averaging about 2,500 minutes per month, combined outbound and inbound.
Other than the monthly fee that is paid to the provider, how does the provider make money from these calls? Does a provider may anything for 1) origination of the call, 2) transport, 3) termination.
Thanks in advance for your info -
Each provider is different, but in general the majority of the income is from the subscription fee. Providers who are also CLECs MAY be able to receive reciprocal income from calls coming into phone numbers they "own" and "terminate" to their own users.
That's about it, everything else (originating outgoing calls, transporting them, etc.) costs the provider money.
As nitzan said, some providers may derive some income from incoming calls, but revenue is mostly from the monthly fee.
If a provider is paying 0.8 cents per minute for termination (a guess, here, but I think the big players can meet or beat this rate on average), then 2500 outgoing minutes is $20. Incoming is likely covered by the origination backchannel fees and essentially "free" to the provider. There are infrastructure/bandwidth/E911/phone number costs involved for the providers, too, so their cost might be a little higher than $20. I imagine your "business class" line is more than $25, so your provider is likely happy with you as a customer.
Now, read the fine print-- the part where "unlimited" is defined as "unlimited within certain usage limits" and that users who average upwards of 3500-5000 minutes, a.k.a. a point where they would become unprofitable, are disconnected or billed overage.
Margins can be pretty thin for heavy users, but there are also a considerable number of subscribers who are below 1000 (or even 100) minutes a month.
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