Sunday, August 5, 2007

Wholesale Business VoIP


The business consists in wholesale trade by minutes of IP-telephony. Market participants of wholesale VoIP market are ITSPs, which resells minutes to each other.

The main target of a wholesaler is to buy routes cheaper and sell them expensively. There are different payment terms for selling minutes, which represents pre-pay and post-pay terms accordingly.

Post-pay terms can be represented by terms of dealing (traffic termination) and terms of making payment.

For example, "post-pay 7/3" - it means that you may terminate traffic for 7 days and then you will have to pay for it in terms of 3 days. There are different terms, like 15/15 or 30/7 or 5/2.

Also, post-pay cooperation can be limited by a credit-limit. The credit-limit is a limit of money, which limits amount of minutes for traffic termination at post-pay terms of dealing.

Pre-pay deals are realized usually as in every business, when a buyer makes prepayment to a seller and can terminate minutes for the amount of prepayment. Usually, there is also can be a credit-limit, which a buyer can use for termination.

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