What is gsm termination?
In telecommunications, gsm termination is the process of completing a call on the local network, after receiving it from outside that network. Recently, however, it has same meaning with the process of substituting the majority of that call’s route with a cheaper one. This is a very brief explanation on what Termination Business involves.
Imagine that a friend of yours, who stays in the United States, is calling you in China. His mobile phone call reaches its operator. The mobile operator has no direct connection to mobile operators in your country and so, to be able to transfer the call, it uses a transit operator – a company that has the equipment and channels for the transmission of the call through the Internet(voice over ip). There may be many such transit companies that transfer your call. Of course, the call can't be transferred for free and every transit operator charges a fee. When the call reaches your country, it can be handled by the mobile operator or uses an alternative route/gsm terminators route! The gsm terminator gets paid then instead of the connection payment going to the mobile operator.
VoIP GSM gateways are the gadgets used to receive international calls via the Internet and forward them to subscribers via the mobile operator's SIM-cards using the local mobile infrastructure. People, who use this equipment, are called gsm terminators and this business is called GSM termination. Terminators gain profits due to the difference in the cost of international calls and a local on-net tariff, which results in supernormal margins and huge profits for most countries.
Assuming we want to make an international call from the U.S to Thailand. The phone in the U.S is a Local wired phone line, whereas in Thailand end is a cellular phone. To keep the example simple, let’s just assume that the caller pays 1$ per minute, which is a relatively expensive rate.
In the modern world, there is an option to send a phone call through the internet, using the technology known as VoIP, which stands for Voice Over IP. VoIP allows us to take a voice call, transform it to IP data packets and send it over the internet.
What's left to do is to connect (terminate) this call to the destination phone. A device connected to both the Internet and the local cellular network is needed, which will capture that VoIP call and connect it to the destination number via a gsm network. That is where the VoIP gateway comes into play.
In our example we can take the call directly from the caller in the U.S. or from his local landline provider, cut out the international carriers that still use traditional, expensive, and outdated voice networks to connect its calls and replace it with a relatively cheap and reliable connection to the Internet and significantly reduce the cost of the call.
In recent years the business of voice traffic (VoIP) termination changed from semi-legitimate startup to one of the most productive divisions of broadcast communications. Proprietors of VoIP-GSM gateways get enormous benefit. Also, the media space is full of news about the alleged unlawful interference with broadcast transmission networks of mobile carriers by GSM terminators. Is this true?
In the event that you break down such accusations, it turns out to be certain that they are altogether made in a similar specific manner. To blame GSM terminatiors using very unfriendly labels, for example, "programmers", "on-line con artists", "mobile traffic pirates", "unlawful switches, etc. These article are sponsored by mobile carriers because they hate competition from gsm terminators who are entrepreneurs offering cheaper communication services. This is particularly true for international calls. Masters in the field of voice traffic termination using VoIP-GSM gateways figured out how to beat costly mobile system with today's cheap Internet.
How can someone start a gsm termination business?
Choose an appropriate termination business solution like ours
Rent an apartment to keep your gateways and SIM-server
Buy new SIM-cards to insert in gateways
Connect your equipment to the Internet
Choose your traffic provider or we can recommend ours
Have a bank, paypal or western union accounts to receive daily or weekly payments in.
What challenges are likely to be faced in gsm termination?
One of the major problems in GSM termination business is SIM blocking/barring. Every newbie terminator gets SIM cards blocked. Mobile telecom operators have partnership with anti-fraud systems companies like ARRAXXE, BICS, CSG, FRAUDBUSTER, LATRO, Mobius, Revector, SIGOS to block SIM cards and safeguard operator's own profit on international VoIP termination market. GSM termination generates lots of money, and it has attracted very many people with little technical & business skills. This should not worry you much though because solutions like ours exist to minimize SIM card blockage and maximize profits in VOIP-GSM call termination business.
What are the major reasons for SIM blocking?
Suspicious activation of SIM card like when very many SIMs with consequtive IMEIs are activated once
Suspicious non-humanlike activity on SIM card which is detected by CDR analysis
software: too many calls, suspicious ACD/ASR, suspicious ratio between outgoing and incoming calls
Test (trace/spam/robot) calls passed via SIM card
Test calls mixed or disguised with real voice calls
Test calls made during interconnection setup via well-known CLI test call service vendors
Which techniques can I use to reduce SIM card blockage?
Successful GSM terminators understand reasons why SIM cards are blocked and configures softswitch, gateway, SIM bank, optimizes all operations with SIM cards to maximize SIM card lifetime before it gets blocked.
Human behaviour simulation.
Correct configuration of GSM gateways, SIM banks, SIM management software, softswitches.
Correct distribution of calls between SIM cards based on previously dialed numbers and caller IDs.
Movable GSM gateways.
Where can I find VOIP traffic exchanges for VOIP traffic partners?