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Learn / Blog

How Can Capacity Affect Voice Termination? 

|  4 min
In this article

Voice over Internet Protocol is set to dominate the future of telecommunications as the cost savings, especially for businesses, are significant. While PSTN (public switched telephone network) calls depend on the limited capacity of copper wiring installation to every user, calls using the infinitely more flexible platform of the internet are much more versatile and require far less investment in infrastructure.

However network capacity can have an impact on voice termination. VoIP may require the marrying of a number of technologies and complex contracts between different suppliers plugged into networks in different regions and of differing quality. The best and most competitive service takes place at the intersection of low cost supply and the highest call quality.

Streamlined operations

VoIP calls can cost little or even nothing when the entire connection uses existing data networks where there are no infrastructure costs or termination charges. However, international call termination can, at times, be complex and one way for operators to save on opex is to delegate management of these functions to a specialist in this area with access to a global network of carriers.

When VoIP relies on the integration of a standard network, the capacity of this network can become a limiting factor when the network hardware can only handle a given maximum level of traffic. A circuit is only as good as its weakest link and when links from a range of countries at various stages of infrastructure development are involved, the strength and capability of the circuit can be uneven.

Many VoIP calls begin on the internet, but termination may take place on a landline or a mobile phone in a different country where the standards of infrastructure may vary a great deal. Fees for using this infrastructure can also vary dramatically and the cost may not have a direct correlation with the quality of the service delivered. Termination costs can be exceptionally high in certain regions, such as Asia and the Middle East where there are many more calls coming in than going out, due to the effects of migrating populations. Carriers in some countries could see the disproportionate numbers of calls coming in as a way to raise revenues.

Wholesale packages

Businesses can reduce their costs by taking advantage of international wholesale deals for voice termination offered by companies with expertise in this area. IDT Express, for example, already has muscular relationships with a number of operator partners, handling up to 50 percent of its voice termination requirements. The market is poised to expand further and there is scope for cutting costs further on capex and opex. For smaller companies, maintaining an entire wholesale department for VOIP may not be practical, but using an experienced voice termination handler could allow for sharing of wholesale supply, with a win-win result for all involved.

With a fully managed voice termination model, risks can be minimised and the benefits of VOIP cost savings can be taken to the highest level, especially when combined with the high volume of calls that results from pooling resources.

Demanding marketplace

Operators whose networks have traditionally catered to traffic largely based around a national business model, may be struggling with the demands of an international market. Older systems may not be able to encompass the added complexity of global challenges and can benefit from the technology and management solutions that IDT can deliver. IDT also combines wholesale offerings with its own international voice service which depends upon a clear, high-quality product.

Stable internet

Efficient voice termination for VoIP also depends upon a reliable and robust internet connection. Fragile internet connections can lead to calls failing or being of such poor quality that they are essentially worthless. VoIP systems must be connected to high-speed internet. Factors such as package loss, jitter and ping must be taken into account as these will affect the delivery of top quality VoIP services.

For an operator, the opex of the internet service can have a marked effect on the bottom line, so tariffs and providers must be chosen carefully. If the internet service is limited by legacy hardware, then this could be a factor in reducing the efficiency of voice calls.

As a specialist in voice termination, IDT is in an excellent position for bargaining and securing the best deals for its partners. It has measures in place to prevent fraud and to give partners added VoIP security.

With guaranteed quality and volume of business to ensure great wholesale rates, IDT is thus in a prime position to become a telecommunications hub that removes the limiting factors of voice termination and facilitates a service of better quality at more competitive prices. IDT also continues to invest in its own systems and to incorporate the latest technology to deliver solutions that allow clients to focus on their core business, enabled by a robust and cost-effective communications platform.

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