The Differences Between Standard VoIP and VoIP Terminations

“Call Termination” is a phrase that is used to define the process whereby telephone calls are directed from one phone service provider to another service provider. The term is most often used to describe a VoIP phone call that is terminated through the use of public switched telephone network services (PSTN). In this case, the VoIP termination services are generally marketed as an individual commodity. The opposite of call termination (VoIP to PSTN) is “call origination” (PSTN to VoIP).

This gives the responsibility to the VoIP termination provider to convert packets into actual voice in order to facilitate communication. The users of the service would then be billed and the provider profits from the difference that is paid to the main VoIP service provider.

VoIP Termination Background

Modern VoIP termination services began around 1995. The initial software development for this service was PC-dependent and required a sound card and microphone. The software was proprietary and required both parties to have the same software in order to make calls. Because calls were transmitted via dial-up modems, the call quality was relatively low.

However, over time, VoIP termination services began to improve. This began with the ability for PC software communication to a traditional phone line, then communication between two traditional phones through the Internet. Advertising sponsorship, as opposed to direct profit, was usually the motive for these services. By 2005, VoIP termination providers were able to offer reliable, high quality service that was comparable to traditional telephony. However, there are many other advantages to the VoIP termination service that made it preferable to standard phone calling.

Current VoIP Termination Services

The entire structure of modern communications is rapidly being taken over by VoIP termination services. This is in stark contrast to VoIP as it appeared in the mid-90s. As business and residential use is gaining acceptance, improvements in VoIP technology have made it a desirable replacement for PSTN. Most of this can be related to the prevalence of high speed Internet connections.

These days, there are a large number of VoIP service providers within the telecom industry. These providers offer services such as: VoIP reseller programs, VoIP termination facilities, wholesale VoIP carrier services and VoIP termination business plans. These services can also be customized to meet the needs of individual clients.
For example, wholesale call termination services can be provided to those who wish to operate on a bigger scale than a VoIP reseller. Here, VoIP minutes are purchased in bulk and the resellers are usually the primary clients. VoIP providers will offer complete termination rates to their customers for every country on the globe. The actual call rates will usually determine which service provider is chosen by the reseller or wholesaler. Cheaper rates and/or better quality will usually prompt a switch to a different service. But in many cases, better quality will take precedence over cheaper rates.

VoIP service quality is determined by factors such as: Average Success Ratio (ASR), Average Call Duration (ACD) and Post Duration Delay (PDD). These indicators are to be provided by the VoIP provider. A good average success ratio should hover be a minimum of 40-50% with the preference of over 60%. The post duration delay should be no more than three to four seconds with a preference of below two seconds.

The Benefits of VoIP Termination Services

VoIP termination services have become more widespread in the business community for a number of reasons. First of all, there can be a huge savings when it comes to phone bills. But even more importantly, VoIP options can increase a businesses’ competitive edge over its competition. This edge can be realized through direct communications with dealers, suppliers in addition to global client contact. A corporation may achieve this through inexpensive international and long distance calls. Standard PSTN calls would add up to a much greater expense when attempting to match this type of call volume.

Additionally, inter-office calls can be made at no additional charge within a VoIP network. Continual free phone communication between company departments can be made despite the physical location of those departments. This connectivity is perfect for those companies with office locations in different parts of the world. All of this is indicative of changes in the way business is conducted. For example, conferences are typical in any corporation. VoIP has eliminated the need to fly great distances in order to attend a conference through the use of VoIP video conferencing. This is just one advantage of VoIP over PSTN.

Finally, VoIP termination offers the advantage of securing DID numbers for organizations that operate from more than one country. A DID number is an independent area code number. This means that a client may call you without knowing that that they are making an overseas call. Your client will only be charged for a local call. This particular feature is especially advantageous for call center operations who are unable to set up their own independent VoIP systems.