Daily VoIP News Digest
Wednesday 30th of December 2009

VoIP Termination

by Brian Turner
May 12, 2005

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Global Crossing VoIP Service provides wholesale IP interconnection, transport, and call completion of packet-based voice traffic over Global Crossing’s integrated IP and TDM platforms. The product architecture provides security; quality; and scalability, making Global Crossing VoIP Termination an industry-leading carrier-class offering.

In addition to providing Carrier-class IP voice worldwide, Global Crossing VoIP Service customers can combine Global Crossing’s state-of-the-art VoIP Service with Global Crossing’s Premier IP VPN service for on-net calling between 500 cities in 50 countries across 5 continents; providing customers the capability to offer a fully integrated voice and data solution.

VoIP Termination Service allows operators to buy and sell VoIP Termination capacities by specifying region, tariff, equipment, and other parameters standardized.

The economic appeal of VoIP Termination is driven by two factors:

First, the peak traffic load for the average ISP offering dial-up services occurs in the evening. The peak for telephone traffic occurs during the day when ISPs have excess capacity available. ISPs are a natural market for offering VoIP termination services since their traffic loads are asymmetric with telephony traffic.

Second, ISPs generate approximately 1.5 cents per minute in gross revenue for dial-up services. This 1.5 cents per minute in gross revenue must cover all network, marketing and customer service expenses. ISPs would not incur marketing or customer service expenses for IP telephony termination services. For this reason, TransNexus believes that ISPs can profit from offering IP telephony termination service at a price well below 1.5 cents per minute. This assumption is even more compelling if the ISP offers VoIP termination services when it has excess capacity available.

Tapping the value of excess network capacity is not a new concept for circuit switched telephony operators. Traditional telephone companies have been profitably buying and selling excess capacity at marginal economic costs for decades. TransNexus believes, however, that an IP architecture enables the trading of network capacity between carriers at dramatically lower transaction costs. For example, the TransNexus Clearinghouse Solution can auction IP telephony traffic, on a call by call basis, in real time between thousands of IP telephony gateways anywhere in the world. This type of dynamic auction process is not feasible with a circuit switched telephony network.

Example of VoIP Termination: Phonecard is the best way to make calls. With a phonecard all you have to do is dial your toll free access code and your PIN number and then you can dial practically anywhere in the world.

A minute rounding is the basic unit to record the length of the phone call. A minute rounding varies between service providers and products. High value cards may have 30second rounding and low value cards may have 3 or 6 minute rounding. A phonecard can be used from your home phone without changing your registered local or long distance carrier. A phonecard is very popular for its convenience - you get what you pay for, no additional monthly fees.

Many consumers would purchase phonecards, and then would also demand high quality connections and a fast acting customer service. Many providers went out of business, while others have instituted a fee related charge based on usage. A phonecard that has a small connection fee or no connection fee are called short call card, which should be used for that purpose. One need to be provided with a cost per call chart to know the best price for the type of call he/she expects to make.

A phonecard keeps you from worrying about how you are going to pay for a phone call home while you are traveling internationally. www.connectto.com was founded to give the consumer the best quality phonecard available on the market. For a phonecard you pay a fixed amount up front which may be for units, minutes or in your national currency. When you find a phonecard that is right for you, you will most likely be able to purchase it right over the Internet or via phone.

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