I haven't used a calling card since my parents gave me one for college (to avoid my college's exorbitant per/minute fees), and I would have figured with unlimited cell phone plans, unlimited broadband VoIP plans (Vonage, Lingo, etc.), as well as software applications such as Skype, Gizmo, and now Google Talk that calling cards were so passe. Who needs calling cards, (including both post-paid and pre-paid calling cards) when you have so many competitive options that offer inexpensive calling, right? I mean really, who wants to dial a an 11-digit access number then remember their calling card account number (or pull it out of their wallet/purse) and then enter the destination number as well as their PIN?
Well apparently, even with so many phone options these days, each vying for the same "limited" phone minute pie, there is still a huge market for calling cards. Go figure.
There are several calling card companies that have now extended into the VoIP realm since obviously terminating via VoIP has much better margins than over the PSTN. One such company offering calling calling card services is CallExchange. They actually offer a hosted calling card platform allowing any customer to set-up their own calling card operation very quickly. In fact, they are fairly unique in that they offer customers the ability to launch a calling card operation with $0 startup costs.
How can it be free you ask? Well, this solution leverages the power of "affiliates"; you simply use an access number owned by an existing CallExchange customer then you pay a commission for all successful calls that originate from the affiliate's access numbers. If you decide later to deploy your own access number you can easily do so and reduce your per minute costs. Thus, you have the ability to inexpensively "test the waters" in VoIP post/pre-paid calling cards and then if things go well, keep all of your termination commission revenue by getting your own access number.
In addition to dial-in access numbes, CallExchange also supports dialing via SIP CPE-based VoIP equipment, SIP softphones, and soon they claim customers will be able to dial via a web-browser with no need to install a SIP-based softphone client.
CallExchange told me "That we are a pioneer in bridging the gap between wholesale minute providers and retailers with its unique web-based hosted turnkey solution for VoIP service providers, has developed a new way to enable entrepreneurs to respond to their local markets and provide the most sophisticated VoIP service through the simplest interface, giving ordinary people worldwide access to the highest quality telephony available. CallExchange's new CallShop Billing software means that one does
not need to be a technical wizard to start a VoIP business."
Further, CallExchange stated, "Entrepreneurs with Internet access can now quickly and easily set up call shops, enabling people to stay in telephone contact across the globe for previously-unimaginable low prices. Call shops make it cheap and easy for travelers and migrant workers to phone home."
This info is from CallExchange:
Working seamlessly with CallExchange termination, or as a stand-alone billing system, CallShop Billing enables quick call shop set up according to various business models. CallShop Billing goes beyond traditional call shop functionality and allows operation according to any combination of the following scenarios:
1. Call shop with prepaid or postpaid billing. The customer enters a booth and the cashier opens a line. With prepaid billing a customer is provided with a predefined credit limit; the connection ends automatically when the balance reaches zero. Postpaid billing allows the charges to be added to a bill to be paid later.
2. Call shop with prepaid pin-codes. In this scenario the customer pays in advance and receives a pin-code. He enters any vacant booth, enters his pin-code, and calls.
3. Pin-code authenticated calls via PSTN access. Customers call a designated PSTN line, enter their pin-code and call.
The unique one-step rate setting and included PIN generator make it simple to create multiple rate profiles to respond to market demand and offer sales and special limited-time offers.
CallShop Billing implements Radius/AAA protocol for real-time Authentication, Authorization and Accounting and provides highly reliable and secure Call Data Records. This program supports end-device manufacturers' extendable dictionaries, and unlike other software on the market, CSB enables modification of dial codes.
Multi-language IVR makes the program suitable world-wide. Call shop cashiers find it easy to operate the booths, monitor the call shop, and provide bill reports upon request.
CallShop Billing takes the headaches out of billing management, so that service providers can concentrate on their primary concern: their customers.
CallExchange recently announced a new software for VoIP-based call shop
billing and management, and they have a free demo version available for download at http://www.callexchange.net/dl/callshopsetup.zip.
So will VoIP ultimately spell the death knell for pre-paid and post-paid calling cards? After all, many claim that with unlimited cellphone plans, unlimited VoIP calling, and softphones (Skype) with free P2P calling, that the price of voice is rapidly approaching zero. What do you think? Post a comment.
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Tom,
I think you raise a great point. We have seen a market though that can't afford unlimited phone offers or simply don't have broadband access but do have dial up ISP service. There are also many users that honestly have told us that the broadband phone service is complicated for them to install and creates other issues for them they had not experienced with traditional phone service.
That being said we have tried to address this market that is happy with their dial up ISP, existing wireless or basic phone service but is getting hit with costly prepaid cards costs. They want to avoid maintenance fees, per call surcharges and enjoy the benefits you mention in your posting.
To that end we have put together www.webcallanywhere.com . This product allows users who have any type of internet access, a credit card and a phone to sign up for service. They can register and begin making calls in a matter of minutes. Web Call Anywhere offers user the ability to make calls from any location worldwide and gives the user the benefit of low costs without all the hassle.
I think the market for calling cards will stay strong because they are used primarily by the poor, who aren't likely to get VoIP service or anything requiring web access.
Pay-as-you-go cellular is hugely popular among the poor, but it still requires $50 or $100 to buy the phone to begin with. Calling cards are a great option because the initial cost is so low.
Great article - I'll check out callExchange.
You're right. People prefer calling cards because they feel it's hassle to connect to internet and then call.
Vivek Sachdeva
Doesnt Spell Doom for me or my favorite calling card website.
VoIp is trashy excuse for long distance. If you want a real quality call you are going to have to pay. You dont have to pay a lot for good service though...
take a look at my favorite web site...
http://www.ohello.com
i am living in abu dhabi, united arab emirates. interested to start VoIP business. right now i dont have anything. here somebody doing this type of business. u can say its monopoly. there selling special type of phone set & always you have to recharge from them & charging more. please help me to start the business.
best regards
murad
p.o. box 46204
abu dhabi
u.a.e.
tel. +971 50 5629425
i need to download the software online buying a full package
It seems that the calling card companies like any company that needs to grow inorder to survive, will embrace the new technology. Not everyone will be able to use or will embrace VOIP, so those are a bit leary of technology but are online, may continue to purchase calling cards. Yea, my mom bought me some too.
Voip Calls would succeed in poor countries if couples with sponsored scratch card making rhe call virtually free for the user, if anyone has the setup pls contact me, maybe a new Freetel phenomina is in waiting Thanx
Great Point.. and it is really promising..
thank you
Here's a question that will make you think...
Since the introduction of cell phones, why haven't pay phones disapeared?
Also, pc to pc might be free with skype, but they are no where near the cheapest when your going pc to phone, especially to another continent.
Actually, the voip markets are not doing as well as anyone thought. Look at Vonage... Jeff Pulver even said there was nothing special about voip to shift the mindset of the consumer in such a drastic way. The ones who regulate your mindset with voice technologies and give it to the people the way they want are the incumbents, and since we have let them dictate what we get we tend to follow that negative mindset that has set in.
Voip represents a major shift in economics. A new way to compete against behemoths like AT&T and Verizon has surfaced. Even in the wireless arena they are crying out to smaller cellular carriers using voip in the middle by subpoenaing everyone using the technology on a larger scale. When Sprint becomes the pioneer to be the only carrier using voip in the handset and it's hybrid data networks people will scratch their heads and say "wow it's getting better".
The only ones who can change the mindset are those who are as big and as powerful as the incumbents. Watch out for the young and powerful Google to change your minds away from old school. They have a few tricks up their sleeves and are readying themselves to venture into old "big money" territories like voice. Be prepared to see large lawsuites flying around like birds being scared off from their grazing grounds.
It's a wonderful news !!.I feel voip provider will doom in the next coming years.
I use skype (voip) which is quick, easily reliable and have great features.
I think market for voip will be stronger than the calling cards.
I would imagine calling cards will remain in use as long as phone companies use standard analog phone lines. When everyone has digital phones, those will probably go out the window, but the world is no where near ready for that!
Tom
I'm not yet in the phone card industry, but I'm doing researches because I'm interestred in getting in. Do you know how I would be able to buy bulk minutes?
Thanks
Well its been more than 2 years since this article was published. And so far, phone card companies are still here and making a profit. I'm a phone card (Onesuite) user for many years now and even tried voip but unfortunately its the wrong one (Sunrocket).
Phone cards are here to stay for at least another 5 years.
Hi all .............. Is there any offer from any phone card service provider by which I can call unlimited to any or some specific locations by paying fixed amount in advance..........
Hello
I am Mohammad Islam and very much interested to start VoIP business, I need business equipmensts and informations and your help how can I start this business. I am living in New York'
Thanks
Did you see the price difference ? For international calls calling cards offer much much better prices. I do not know about the quality but prices are way lower!
I am a calling card and voip carrier. Anyone interested in partnering with a company that is already active please drop me a line. I have Unlimited plans to many countries and offer discount billing on calling cards to my voip customers. You can email me at growingequity@gmail.com for rates. I also offer great rates for people starting up their own system.
Thanks,
Joseph Hajek
The VoIP calling card market is one of the most lucrative industries in the market today, especially in countries where there is a great need for international calling.
IPsmarx is unique in that we offer turn-key solutions, including all of the components (software, hardware, training, technical support, and carrier services), providing you everything you need to start your business.
If you would be interested in speaking further about starting a Calling Card company please contact me.
Kind Regards,
Shane Breen
IPsmarx Technology Inc.
48 Wall Street
Suite 1100
New York, New York 10005
United States
Tel: + 1.212.918.4990
Fax: +1.212-813-3277
Email: s.breen@ipsmarx.com
Web: www.IPsmarx.com
IPsmarx has joined the Blogosphere! Visit http://www.IPsmarx.com/blog
I am interestd in this business, but i have got any reaply from from anyone for further information. mail me at bnsoulz@hotmail.com
This article was written 3.5 years ago and heck calling card industry is stronger than ever. So I guess the answer to the question "VoIP spells doom for calling card business?" is No.
Onesuite the calling card company I use (Onesuite.com) did go one step further. Instead of fighting voip rates, they added voip in their service and getting both the calling card and voip market. Those whose afraid of using voip can use the calling card service and those who wanted more access and brave enough uses their voip feature.
In the end, end users like me get more options because we get better rates. I still remember 5 years ago calling India will cost me about 20 cents at Onesuite, now its down to 8 cents per minute. I bet if there are less competitors around then the price will probably the stay the same.
Right on...Calling cards will remain the easiest way of international calls. And prices !!! just make a comparison: http://www.alfaorg.com/prepaid_international_calling_cards.htm
Hi,
I am interested to buy or to get help in setting up my own calling card business in Canada...If you can help, please reply me asap...