VoIP wholesale service is poised to supersede traditional telephone systems through telephony. IP telephony has transformed the telecommunication sector with incomparably cheap rates for long distance calls. In the business environment, Voice over IP is becoming increasingly popular because of the many benefits it offers, not the least being substantial cost reductions, no signal problems and international call termination. The advent of Voice over IP has spawned a new type of service known as VoIP wholesale termination.
This type of communication starts with wholesale providers who receive interconnection from countries at negotiated costs based on the amount of anticipated traffic, assessed in minutes, to that country. The rate becomes inversely proportional to the volume, where the more the minutes, the less the rate. After working out a profit margin, wholesale providers, resell services to other businesses.
Call termination, sometimes called voice termination, is the routing of calls from one company, typically the provider, to another, where the terminating point is the end point or called party. VoIP termination is where an originating call is terminated on the Public Switched Telephone Network (PSTN). VoIP wholesale termination is sold as a separate service which offers a lucrative opportunity to small businesses. Wholesale termination is effectively a provision of a route or path through which a call can be sent or transmitted over the internet.
Many providers offer VoIP wholesale termination services. Typically this would be a tier-1 operator, registered, with a physical international network, who holds the rights to originate and terminate calls that use Internet telephony services. The way it works is for a tier-2 operator to initiate call termination on the Internet by leasing a portion of the network from a tier-1 operator. Likewise, tier-3 operators can lease network services from tier-1 as well as tier-2 service providers which save the latter a considerable amount of expense in registration and infrastructure. The tier-1 operator bears the expense of technical equipment and infrastructure which needs substantial investment.
In view of the steadily growing popularity of IP telephony, the cost of VoIP wholesale termination is highly competitive and varies considerably between service providers. The customer has a wide choice in selecting a provider which offers the best rates. A small business person can start a business in the telecom industry without taking a big financial leap, or marketing or other risks. Taking this step does not require investment in expensive equipment, technology or software, nor are there any time-consuming procedures involved. A small business can become a wholesale termination agent with a modest initial payment, which is typically offset against future traffic consumption. The start up period is brief, requiring just a few business days. The advantages are:
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