Home > Wholesale VoIP > Termination


Wholesale Termination Services (also referenced as VoIP call termination, voice termination, or Carrier Services) have been a big business for telecommunication carriers for over 25 years. At their most basic level, termination services enable the successful routing of calls through providers to the recipient, regardless of whether the call is coming from the PSTN or via the Internet (as is the case with VoIP). 

Telecommunication carriers fall into three categories: 1) Retail carrier or 2)  Wholesale carrier or 3) both. While wholesale carriers offer 100% of their network or services for resale or lease, retail carriers may offer none (or only a portion) of their own network for wholesale business. Gross margins on wholesale services are typically much lower than those of retail services, but revenues generated on wholesale services can be much higher.
Finally, the cost of softswitches, routers, and gateways that are used to buy or trade carrier services are a fraction of the cost of TDM switches that were required in the past.
However, due to the virtual, networked, and real-time nature of carrier services, the entire sector of call termination is subject to some business risks. Be cautious of Tier 3 carriers, as unmet commitments and quality inconsistencies have been reported with carriers on this level. Accordingly, branding and image building is typically tough. When a company achieves a certain positive brand image, it becomes extremely important to protect though it is not always financially and/or administratively easy to do.  Carrier services for businesses and customers are also not considered to be considered to be "sticky" as volumes of traffic can quickly shift from one carrier to another because of better pricing or a valued sales rep moving from one carrier to another.
Wholesale termination services are here to stay, but we will continue to see rate compression for years to come.

global reach

Termination Increases Visibility

VoIP termination helps connect users across the globe

The increased reliability and popularity of VoIP technology has resulted in a significant reduction of rates and gross margins of all voice traffic over the last ten years. However, VoIP has also driven traffic volumes exponentially (especially with international long distance calling) because it is now much more affordable for businesses and consumers.
VoIP has also eliminated geographic boundaries and made it much easier for carriers to interconnect with one another.  Installation intervals for international services have been reduced from 2-3 months to 2-3 days because of VoIP technology. In addition, it is much less expensive to connect to other carriers today due to VoIP technology. Back in the 90's, it would have cost thousands of dollars to connect to an overseas carrier for wholesale purposes. But today, the only cost might be an incremental cost in the bandwidth at your switch site.

international calling with PC

Termination Services

Termination services are offered both in the United States and internationally

VoIP technology has lowered the barrier to entry and eliminated geographic boundaries, making for cheap local and long distance calling within the United States and Canada. VoIP has also significantly driven down the costs of international termination services. However, it is still not all that easy to find the right carrier for your need for quality services at the right price to a certain city, country or wireless provider.

In most of the Middle East (as well as African and Asian countries) voice termination services are generally subject to strict and long drawn regulations by the governments and telecommunication regulators. This is because the governments want to keep the voice termination rates at a certain high level. Generally, this is due to situations where a sizable portion of the population moves abroad to other countries, yet continue to place calls to their home country. This results in an asymmetric flow of more calls coming to that home country than the number of calls being originated from that country to other parts of the world. As such, the governments and their regulatory agencies spot a financial opportunity: maintain a termination rate much higher than the actual cost of termination, thereby generating extra revenue.

international computer network


Easily route your high-volume concurrent calls for less

A large demand for predictive dialing services have debuted over the last couple of years as technology has made it more cost effective for contact centers to expand their workforce, both in numbers and geographically. Predictive dialing services are typically used by telemarketing organizations and political campaigns. Because of the unique nature of these types of services (including low answer percentages and low average call durations), the wholesale terms and conditions are different from normal termination services.  The biggest differences are the elimination of low call duration penalties and restrictions on the number of calls per second allowed.

A dialer service is important for businesses because it helps handle high call volumes efficiently. It routes your concurrent calls over a converged IP network, connecting directly to the PSTN in order to eliminate the need for PRIs. This, in turn, helps you to vastly reduce your costs.
Dialer services are most popular for calling into the United States, Canada, United Kingdom, Australia and China.

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