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Growth of Retail VoIP Spurs Growth of Retail Class 5 Softswitch for VoIP Service Providers

Softswitch Solution

Growth of Retail VoIP Spurs Growth of Retail Class 5 Softswitch for VoIP Service Providers

Wednesday July 22, 2020,

4 min Read

When VoIP started to become mainstream it was mainly business users who were the bulk users. Today, home users are looking at VoIP with more serious attention as costs of domestic and international calls are low and you can benefit from other VoIP services. GMinsights reports that domestic VoIP calling market will grow by 12% and the VoIP market value will exceed $ 55 billion by 2025. Retail accounts for a small, but, nonetheless, significant portion of this market share. Existing VoIP service providers can now target the retail end points and, the rising demand should encourage entrepreneurs to get on the VoIP services bandwagon and launch their retail VoIP telephony related services with just a retail level class 5 softswitch, a bit of hardware and market savvy.


Typical path to starting retail level VoIP services

  • Get class 5 softswitch software, tie up with wholesale VoIP service provider or a telecom carrier, get fast internet connection and market retail VoIP service offerings in your location.
  • When you tie up with a telecom carrier or VoIP services all the rates are provided and included in the billing module of your class 5 softswitch.
  • Subscribe to direct inward dialling number
  • Configure tariff plan and load it into billing module and call detail record
  • Use software to generate PIN and PINless calling cards
  • Contact local residents, shops and small businesses to subscribe to your VoIP telephony services


The class 5 softswitch solution plays a crucial role. There are enterprise or carrier grade softswitches capable of handling thousands of concurrent calls and then there are “lite” versions for budding VoIP services that can handle fewer calls. However, you have other features that are necessary for such retail level VoIP services. Choosing the right retail class 5 softswitch is important.


The retail class 5 softswitch

Class 5 softswitch software is a generic term that covers at the one end carrier grade softswitch solution for large scale VoIP service providers and telecom carriers and, on a small scale, retail softswitch software for the retail end. This is the one you need if you are in retail VoIP service business or plan to start one. It costs less and has almost all of the features of enterprise level softswitches except for the capacity.


Manage clients with ease

Retail class 5 softswitch includes facility to help you manage different classes of customers with ease.

  • Individual home users and individual professionals
  • Resellers for calling cards and commission agents
  • Small business users
  • Call rate management, currency, taxes


Couple this with billing module and CDR and you have the right softswitch solution infrastructure in place


Billing, CDR, reports

Rather than rely on your upstream VoIP service provider you will find it advantageous to own your class 5 softswitch because you get custom billing module linked to call detail records and reports. With this in place you can:

  • Bill postpaid customers and use CDR for such customers as also for prepaid customers and calling card validity/value and receive payment through integrated payment gateway
  • Send out automated reminders
  • Generate reports on payments, costs, revenues, profits to know status of financial health


The good thing about an integrated class 5 softswitch with billing is that technical side blends in seamlessly with administrative side.


The technical side

The right softswitch solution for you has configurable technical options such as:

  • Least cost routing with options for second alternative in case the first does not match or is not available
  • Balance load and share termination endpoints
  • Craft multiple routing plans
  • Monitor calls and traffic
  • Seamlessly handle media codecs and protocols
  • Manage DID extensions and IVR
  • Define call authentication


Fine-tuning the softswitch is the key to performance that satisfies customers and milks revenues under tight operating conditions.


Today’s situation is that there is an increase in demand for video conferencing and remote work based services. VoIP is the vital linking key and softswitches help you to enter a profitable market. The trend is likely to continue and even grow.


A whole world of opportunity

It is not just voice that the class 5 softswitch software handles. You have a whole world of opportunity opening up by way of OTT mobile apps, IP PBX, WebRTC audio-video chat and conferencing as well as converged services.



The beauty of retail VoIP services is that it requires very little upfront investment and no inventory costs as would happen when one deals in or manufactures products. Plus, despite recessionary trends or due to it, communications experience a boom and you are looking at a growing market segment where saturation point is still far away. Get started at the retail end with class 5 softswitch and you may not even have to move up to class 4 and wholesale.