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How to Start VoIP Business?

11-18-2020 04:31 PM CET | Media & Telecommunications

Press release from: Voxvalley Technologies Pvt Ltd

VoIP, or Voice over Internet Protocol, is one of the most used technology in the field of communications today.

So, what does it do?

To put it in a simple manner, VoIP allows you to place calls through the internet, rather than the traditional Public Switched Telephone Network (PSTN).

If you are looking to start VoIP business, first you should understand what it is all about and get an idea about how it works.

VoIP and its Functions:
First, let us try to understand the concept of VoIP a bit more in detail.

As stated earlier, VoIP is a technology that allows communication over IPs.

Such communications are not limited to just voice calls but include every form of communication you can think of.

That means, it can delivery multimedia messages and more!

Here, instead of using a phone line, you use a broadband connection.

It provides you advantages, which a traditional phone would be unable to in the following ways:

Lower costs, as it’s cheaper than a traditional phone line.
Its services are not limited to most geographical boundaries.
Better accessibility.
Now while building a business based on VoIP, it is crucial to make notes of the challenges you might face like:

Unstable internet connection
Device compatibility
Just like with any other business, a VoIP business will bloom if it’s set up with proper planning and other measures.

Starting a VoIP Business:
While thinking to start a VoIP business, there are two models available.

You can either go for wholesale or reselling.

Just as the names suggests, wholesale VoIP business is involved in providing large volume of communication services and reselling involves the sale of fragments of it.

A wholesale business deals with a higher amount of money and also higher risks.

And the case for reselling goes the opposite way- comparatively less money and risk involved.

In the case of beginners, it is advisable to choose the reselling model, considering the factors like investment required, risk involved and returns.

The world of VoIP contains numerous terms which can all seem highly confusing if you are new to it.

Therefore, before forming a business plan, you need to familiarise yourself with the terminologies and other related concepts.

You will come across various abbreviations such as ISP (Internet Service Provider), DID (Direct Inward Dialling), PSTN (Public Switched Telephone Network), etc.

Along with these, you will need to keep an idea about concept such as unified communication, soft switches, IP/PBX, and more.

After knowing exactly what you are going to be dealing with, you need to design your business model.

This can be done with help of an expert.

Both technological and managerial aspects have to be weighed in this step.

Some points to keep in mind here includes:

Set your objectives
Figure out how you can stand out amongst your competitors. Find yourself a USP.
Ensure the availability of finance.
Conduct the necessary feasibility analysis.
The next question here is how to create your own VoIP service?

Let us now look at the technical side of it.

The first step here would be set up the appropriate infrastructure for your business model (wholesale/reselling). This includes components like softswitch, billing mechanisms, etc.
If you are choosing to follow reselling, then you need to create a platform your customers can make use of to communicate. The most popular option would be a mobile application that can integrate all your services.
You will need to set up a payment gateway system that is fast, secure, and supports various payment methods.
Choose a suitable carrier that offers a good rate without any compromise in terms of quality.
Set up proper customer service.
‘Internet Service Provider’ (ISP) is another very important term in the world of VoIP.

An ISP is who will provide you with the internet your company needs.

As VoIP is based on the internet, the importance when it comes to selecting the most suitable ISP cannot be stressed on enough.

There are some VoIP ISP requirements that has to be kept in mind here.

A VoIP business requires a good bandwidth. Bandwidth is nothing but the speed of internet. You need to assess your bandwidth requirements and opt for a suitable ISP inorder to provide smooth services to your customers. A poor calling experience will otherwise have a negative effect on your business.
The quality of the connection should be good enough to control any latencies. After all, if you can provide high quality calls even if the internet traffic is high, it will surely gain an advantage amongst competition.
VoIP, although it might seem like a very complex field, is not actually that complicated once you get the gist of it.

Is VoIP business profitable?
VoIP, generally speaking, is a trending technology and is surely on the profitable side, considering its demand and scope for innovation.

But on the other hand, the success of a business also depends on how it is carried forward.

The right steps will surely pave way towards desirable results!

Get start Free Trial:

Voxvalley Technologies is one of the leading providers of reliable, innovative, and intuitive telecommunications and cloud-communication solutions.
Headquartered in Singapore, with R&D Center in India, sales offices and partners across the globe, Voxvalley serves over 30 million end-users and 8050+ customers in 45+ countries.

30 N Gould St, Ste R,
Sheridan, WY 82801
+1 415 521 3536

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