VoIP Termiantion Rates

Voip Termination

How much do you know about the term “VoIP termination”?  Voice Termination can have two meanings.  When a voice call is routed from a public switched telephone network (PSTN)  and ends on the VoIP network , or when a call originates from a VoIP network and gets terminated by the service provider at PSTN.  Most view VoIP Termination as calls that originate  from a VoIP network to be terminated by the service provider at PSTN or to others voip networks.

How are VoIP rates created?

Just like other service providers, pricing or rates for voip termination varies based on several factors, including the provider and the location of the destination number. However, generally there are individual and wholesale rates for A-Z termination. Also with wholesale rates, the more minutes per month you purchase the greater your discount will be. See our low volume wholesale rates here.

What is the PSTN?

PSTN is an acronym for Public Switched Telephone Network which is a traditional or analogue telephone operating feature in which calls are routed through a series of public circuit switches to route voices over GSM or CDMA telephone lines. This is unlike a VoIP in which all calls are routed through packet switches to route voices over the Internet.

VoIP  Termination Providers

VoIP Termination Providers are companies or individuals that allow you to send calls to them via data connection or the internet. They will complete these calls to the person whom is connected to them either through direct connections, PSTN or also through VoIP.

Here is a list of 5 major VoIP Termination providers:

Example VoIP Termination Provider Setup

Let’s say you live in Dallas, you have asterisk PBX system, an internet connection, and 4 local phone lines (PSTN) in your office. Your 4 local phone lines have the ability to call anywhere in Dallas free of charge.  If you were to install 4 analog ports onto your asterisk PBX, you could then connect your four local lines directly into your asterisk system.  After also connecting your asterisk system to the internet, you would then have the ability to terminate 4 simultaneous calls into the Dallas Local Area. You would then be a termination provider for the Dallas area. You can charge the rate of $.005 cents per minute, saving others money while making a few bucks yourself.

Legally,  you would have to check the rules in your local community about using your local lines in this manner, but this is nothing new for local companies to date.