Strategies to Reduce VoIP Termination Costs

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Strategies to Reduce VoIP Termination Costs
Jim.Dalton_at_TransNexus.com 404-526-6053
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Agenda

• Evolution of pre-paid calling
• Point to point toll by-pass
• Originating VoIP prepaid calls
• Growing the VoIP network
• New techniques to lower termination fees
• Breakout routing by City Code
• Time of day routing
• Product routing based on quality
• Leveraging interconnect agreements
• Ramifications for the Prepaid Industry

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Point to Point Toll Bypass
VoIP
IP Network
Benefit VoIP less expensive than private lines
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Originating VoIP Prepaid Calls
VoIP
IVR
IP Network
Benefit Eliminate prepaid switch and related
costs
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Growing the VoIP Network
Carrier B
Gatekeeper
IP Network
Benefit Low cost expansion, access to new
markets
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Techniques to Enhance Margins
Advancements and cost reductions in routing and
OSS products enable new profits

• Breakout Routing by City Codes
• Time of Day and Day of Week Routing
• Product Routing based on Quality of Service
• Leverage interconnect agreements generate new
  revenue from wholesale traffic

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Breakout Routing

• Breakout routing to India can save 2.5
  cents/minute.
• Save 25k for each 1 million minutes to India.
• Breakout routing to Mexico
• Mexico Proper 0.0620
• Blended Avg 0.0298
• Savings 0.0322 / minute
• 52
• Save 32k for each 1 million minutes to Mexico

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Implementing Breakout Routing

• Old Technique
• Add breakout rates and routes manually

• New Technique
• Add breakout rates to billing system
• Manually (from faxed rate plans)
• Upload rates from file
• Customers self provision their rates via web
• Least Cost Routing algorithm dynamically
  optimizes routing table based on rates

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Time of Day / Day of Week

• Wholesale Weekend rates to UK Mobile operators
  can save 0.08 cents per minute
• 8k incremental profit for each 100k minutes
• Negotiate for lower off peak rates

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Routing by Product

• Product Routing based on Subscriber, Calling
  Number, IP address or Product Code

Gatekeeper
Internet
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Leverage Interconnect Agreements
Gatekeeper
Carrier A
Carrier B
IVR
IP Network
IVR
Carrier C
IVR
Carrier D

• Use IP to IP Gateway or Peering Protocol for
  intercarrier access control and CDR reporting

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Leverage Interconnect Agreements

• Benefits
• Profit from incremental termination revenue
• Use Time of Day / Day of Week routing to sell
  unused capacity
• Generate new revenues by routing and billing for
  intercarrier VoIP traffic
• Increased termination volumes with carriers lead
  to larger discounts and better margins

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Open Interfaces Enable New Techniques
Gatekeeper
GKTMP
SQL

• Operational Support System links real time
  routing with rates and business policies
• Route provisioning algorithms dynamically
  provision optimized routing as rate plans change
  - Least cost routing
  -
  Product code routing
• Near real time CDR analysis used for dynamic
  routing adjustments based on Quality of Service

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Ramifications for the Prepaid Industry

• Large carriers are using VoIP to extend their
  wholesale networks to retail customers.
• To compete, small operators must extend retail
  network to wholesale termination
• New VoIP operational support systems make this
  possible for small operators.
• Improved integration between route provisioning
  and rating / billing systems
• Improved price/performance from hardware and
  software