VOIP service, getting started

I have seen a lot of people in the business section want VOIP service. I think that could be good idea start providing that?
I’m planning to get windows VPS soon. But that will be used in full, so it is supposed I need another hardware hosted solution.
What do you think if I get ready solution from companies like softswitch24.com?
Reasonable for the start?

I do hang around Dslreports forum and small VoIP owners there will tell you they get little to no profit at all in their business. What they after is to get a fair share of the market so that tiny profit will become small somehow.

Let’s take unlimited voip services for $20/year as an example. I’ve read before that the 1 minute cost of voip call would cost around .9 cent ($0.009). So your $20 is equivalent to 2,200 minutes or 37 hours and you divide that by 365 days equals 6 minutes per day.

Now these companies are hoping that the bulk of their customers doesn’t use it for more than 6 minutes per day or else they will get no profit at all. I think most of the customers don’t use it more than that much or else there will be no companies like MagicJack or Ooma.

Before I forget, of course they make some profit too out of their devices which you need to buy for the first year.

It’s a lot of work. Look at it this way. It’s .01 sent per minute to make a voip call, so you’ll be making 1 penny per person per minute. Unless you already have the connections it’s not something that will make you a lot of money.

Let’ s not forget The voip server, marketing, ATA hardware, billing software, support, management. etc

It’s way easier to start a webhosting business.

There are companies out there that will do everything for you but startup costs are $7000 to $8000.
You’ll basically be competing for pennies unless you have millions of clients.

It’s a huge amount of work with tiny margins, from my experience the only way to offer the best rates is to offer whatever your upstream trunking service rates are with no margin - it’ll get you turnover and let you compete on price but there’s no profit or anything to cover your operating costs.

ATA hardware can be taken out of the question, it’s not worth it unless you have a super sweet deal with your local telco and will be re-selling that route on the wholesale market (which will likely dwarf the consumer side of your business in terms of minutes pushed).

Presuming you wrote a call routing platform from scratch based on Freeswitch leased a hosted SIP switch from softswitch24 and tied that into your existing billing systems you’re still going to have to provide support, documentation for all the latest SIP devices & softphones etc.

Good luck.

I agree, VoIP business is saturated and it will get you tiny little profit if you survive.

VOIP requires a good amount of resources and hence I’d recommend you to choose a dedicated server for VOIP in order to get better performance.

Considering you are competing against big, rich, entrenched telecom interests from one side and big, rich, entrenched internet interests (eg–skype, google voice) on the other it is a fool’s game. Now, getting into the business of configuring internal VOIP systems for smaller businesses could make alot of sense–there are many, many old PBXs aging out of maintenence and not everyone can afford the $$$ for cisco.