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How Much Money Can you Make on GSM termination? Calculate Your Income
How Much Money Can you Make on GSM termination? Calculate Your Income
18-Oct-2017 12:58

How Much Money Can you Make on GSM termination? Calculate Your Income

The voice traffic termination business is one of the most profitable in the world. Of course, you will not immediately start earning huge sums but the investments will pay off in a few months, and the minimum monthly income will be about $2,000. For many, the termination is the main earnings, and for someone is an additional source of income. If you apply a competent approach to doing business, you will be satisfied with the result.

The amount of your income will depend on many factors, the most important of which are the choice of a potentially profitable route, the selection of a profitable tariff plan, and the reliable protection of SIM-cards from blocking. We bring to your attention an example of calculating the profit that an entrepreneur can get doing GSM termination.

As an example, we will look at the African country of Burkina Faso. African destinations are considered quite promising for business since there is usually a high rate, which is the price that transit operators are willing to pay gateway owners for traffic termination services. At the same time, the prices for calls within the country are minimal. Moreover, the income of the terminator is formed due to the difference between the rate and the cost of one minute of the local call.

Voip call termination rates differ from country to country, operator, frequency of the SIM-block. In Burkina Faso, the average rate is $0.15- $0.18 per minute (the rates are actual at the time of writing the article). This is a rather high price paid by the originating companies for terminating traffic. There are routes on which the average rate is only a couple of cents. On the other hand, it is not always wise to choose the direction with the highest rate because in these countries usually use the hardest antifraud, that is, SIM-cards are blocked very quickly. At the same time, in countries with low rates for terminating services, cards may not be blocked at all.

When choosing an African country, consider this nuance. So, Burkina Faso has high rates and low tariffs on local cellular communication:

VoIP rate = $0.18 per minute;

Cost of a minute of a local call = $0.08;

The difference is $0.1 per minute.

When choosing the appropriate tariff plan, one minute will cost about 8 cents. The difference in prices per minute of conversation is your income (per minute). Now multiply this value by the number of channels involved in the operation (for example, if you use the GoIP-16 GSM gateway, you can use 16 channels) and the number of minutes that you plan to terminate per day.

0.1 х 300 х 16 = 480

As a result, you will make about $480 per day, using a single 16-channel gateway for 5 hours a day. In a month, it will be more than 14 thousand dollars. In addition, you need to deduct the cost of buying new SIM-cards, the Internet connection, and office rental. In Burkina Faso, the starter package costs about 50 cents. Even if you use new SIM-cards daily, the cost of buying them per month is as little as $15. The average cost of Internet services in the country is about $100 per month. In addition, renting an apartment to place gateways will cost you another $1000. In total, your approximate profit will amount to $12,885 per month.

Your income depends on how much traffic the originator will provide you. This is primarily affected by the level of development of the mobile sector in the country. The more cellular calls local residents make, the more traffic you can redirect via alternative routes. Consequently, if you can use the capacity of your VoIP equipment to the maximum, you will get the maximum profit.

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