Business Model - Calling Cards

Description

Calling cards business is one of the most common business models in VoIP (voice over IP) industry.

The essence of the calling cards business model is to creatively segment customers by various demographic or behavioral characteristics

and to design calling cards offerings to meet their specific calling needs.

The calling cards business typically attracts entrepreneurs who want to enter new market, businesses with established retail

distribution channels, and service providers who want to diversify their revenue streams.

What is needed to implement this

• MOR system with Calling Card addon
• DID number (access number)
• Termination provider
• Printing (if you sell printed cards)

How it works

1. User buys a Calling Card (over the Internet/printed, in a store/street/etc).
2. User finds the NUMBER and PIN of the Card. It can be on the plastic/paper Card or given to the user in an online Calling Card Store.
3. User dials an access number, which is given to the user in the same way as the number/PIN. User can dial this number from anywhere in the world.
4. System asks the user to enter the number and PIN (or only the PIN). When user dials the access number, IVR will ask him to enter card number and/or PIN.
5. Are the number and/or PIN good? In this step the system checks the database to see whether a Card with the provided number/PIN exists. If the Card is not found, the user is asked to enter new a number/PIN. It is possible to change how many times the system will permit reentry of the number/PIN. The default is three tries.
6. The system tells the remaining balance on the card. This step is optional and can be disabled.
7. The system asks for the Destination to be entered. IVR will ask the user to enter the destination he wishes to dial.
8. The system tells the remaining time. Based on the entered destination and the remaining balance, the system will tell the user the remaining time he can talk with this destination. This step is optional. It is influenced by Ghost Minute Percent.
9. The system dials the Destination. Using LCR, the system chooses the cheapest provider and dials the entered Destination.
10. After the call, its cost is deducted from the Card's balance.

More detailed logic is explained here.

Financial figures

We have collected information about the profit from several Austrian, Italian and Ireland companies.

Below you can find the results that were achieved in 6 months from the business start:

Company	Sales (calling cards per month)	Income (EUR/month)	Expenses (DID, termination and printing) (EUR/month)	Profit (EUR/month)	Peak of concurrent calls
Austrian company	10 000	39 000 EUR	36 300 EUR (120 channel DID – 890 EUR, printing – 300 EUR, termination – 35 110 EUR)	2700 EUR	81
Italian company	4 000	22 000 EUR	21 200 EUR	800 EUR	20
Ireland company	18 000	69 000 EUR	36 900 EUR (DIDs and printing – 600 EUR, infrastructure – 300 EUR, termination – 36 000 EUR)	6420 EUR	80

In the above provided examples two companies had their own MOR systems, while the remaining was renting full infrastructure.

All of the enterprises are one-man companies.

What else is needed to be taken into the consideration

• Applying hidden fees and advanced rates. This allows you to increase your competitiveness.
• Protecting your system. VoIP fraud is very common and to avoid huge losses you need to ensure the highest possible security.
• Applying flexible payment plans for your resellers and distributors. This is a common practice in calling card business. By allowing post-pay you will have possibility to attract more partners and sell more cards. On the other hand this reduces your cash flow.

Contact us

If we have missed some information or you would like to see how you can use MOR for calling card business, free to contact us at b2bsales@kolmisoft.com