As you already may know, Voice over IP implies that a call goes via internet instead of using the Public Switched Telephone Network (PSTN) so calling from one computer to another or from an smartphone to another using a special software or apps shouldn’t be a problem.

How PSTN Works
How PSTN Works

But what happens when someone wants to call to a fixed land line telephone or cellphone that is not connected to internet? Well that is when calling termination comes into the picture.

Ordinary telephones are not designed to connect to internet nor to follow the voip protocols therefore they can’t receive an incoming VoIP call directly, so in order to switch a call from the internet to the PSTN the call must reach a physical piece of hardware known as gateway that is connected to both the internet and the PSTN.

How VoIP works
How VoIP works

Thus to guarantee the cost efficiency of the call the gateway must be connected to the same PSTN that serves the person or business intended to be called but even then the gateway generates the cost of a local call in the destination while switching the call. That is why the owners of gateways charge the originator of the call with a fee equal to their cost plus a small margin to make a profit.

In short: A call termination is the service of switching incoming international VoIP calls from the internet to the local PSTN.

If you are interested in setting up your own termination business get in touch with us by writing to contact@pingmar.com or contact us in skype!

We can help you get started with some guidance, we can sell to you the hardware you need and we will get traffic for your new termination.