How to Start as a Voip Service Provider?

Dear Members,

I would like to know if some one could guide me regarding the subject matter. I would like to know what tracks do i need to follow? Also How VOIP companies get cheap long distance calls without TOLL By Pass?

Thanks & Regards,

1 - Write a business plan
2 - Secure financing
3 - Hire consultants

To obtain interconnect agreements with telephone companies to achieve the rates that allow you to make money in this space you have to commit to volume agreements, typically $5000 to 10,000 a month.

Then you still need to comply with your states regulations, federal filings, USF, CALEA.

Dear Skyking thanks for the answer however i would like to do it in a private fashion and in a technical way. Is it an option or do i have to do it with the telephone companies. Can i achieve it with my own SIP server and Internet?

I can solve this issue by Setting up servers in world wide location and making local calls for people going through the servers but i just want to know how to achieve it if i have my servers located on single place and achieve the same.

Thanks for help.

Best Regards,

If you are in the United States the minute you charge to connect a device to the public telephone network you are subject to regulation.

“In a private fashion and in a technical way” doesn’t make sense, is English your first language? You spelled “waisted” wrong in your by line, it’s “wasted” so I think we may have a language barrier.

Of course you can purchase SIP trunks and switch them with a softswitch. That doesn’t add any value. ITSP’s (Internet Telephone Service Providers) reserve their best rates for customers who purchase large amounts of minutes and terminate an equal amount of traffic (very important concept), the profit is in fractions of pennies per minute so volume is key.

You also need extremely high quality Internet connections, and more than one. You also have to run BGP for automatic failover (who is going to buy phone service from a company without fault tolerance?)

I have been in this business for a long time. If you want to offer this service I suggest you look at becoming a reseller of one of the large carriers. Unless you have significant funds to invest you will make more money both short and long term.

Dear SKYKING thanks for the answer yes i am not American and English is not my primary language but it doesn’t stop any one learning stuffs, does it? Any way i can speak and write 4 International Languages :).

Now coming back to the original subject, do you know any site or material which can help me learning the same and give to the point info for the softswitch and how to configure it and its logic.


I don’t know of any specific sites. Asterisk is a softswitch so you already have the concepts.

I guess I would start with Uri was a coworker of mine at Motorola and is a world renowned expert in the field.

Thanks a lot Mr. Skyking for the info much appreciated. Will post again with my findings… :slight_smile:



You should never expect an overnight success. It needs lots of work hard and time. Let me tell you one thing clearly. You must have some knowledge of VoIP technology before you start your own company. Only then you would be able to understand how you can keep your business cost low. Most of the “great” VoIP service providers learnt to keep costs down by hit and trial method. Just read the article to get my point
You should try to benefit from these provider’s experiences. It would be best if you could do a job (for a year or so) with any of these providers (Axvoice, Vonage etc.) before starting your own company. Remember business can be made great only by intense hard work and learning from other’s experiences.

I totally agree with you Nathan thanks for the advise. I do have VOIP knowledge, was just curios how stuff works and how to take advantage of something you know.

Thanks for the help.

Best Regards,