1. Introduction

This is a general guide that aims to assist people who are interested in opening a call shop business - specifically a VOIP calling center. It may be useful if you are starting from zero, for call shops that want to transition to VOIP calls to reduce costs, or for Internet cafe owners who wish to establish a call booth area. It may be helpful for hotels that are looking to offer calling services to their guests.

The basic idea is to have a place where customers can make calls. The profits are made by selling the call service at per-minute rates that are higher than the cost rates offered by the international call service provider.

2. Site organization

- Booths

The main attraction are the calling booths. You must have a comfortable and private space where customers can go in and make their calls. Phones should be kept in good order and have good sound quality. It is recommended to have some sort of screen where customers can keep track of call duration and costs; there are some IP phones with screen that may be used for this, in other cases a separate screen can be used.

- Cashier's desk

You would normally need a computer and a ticket printer.

- Telephony and network equipment

You will need the usual Internet connection equipment like routers, switches, modem, etc.

IP Phones: there are modern, digital phones with screen. They connect directly to the Internet router with network cable. VOIP service parameters are programmed directly on the phone and no other equipment is necessary to make calls. You will need one phone per booth. These are more expensive than a regular phone.

Analog Adapters: known also as ATAs, APAs, or voice gateways. These devices are similar to a router, they have a port for connecting to the Internet and one or more ports for connecting to analog/regular phone sets. The phone service is programmer in the adapter and phones are connected to the ports which give the dial tone and allow for making calls. They don't have a screen so separate displays might be necessary at the booths. Given that some adapters have multiple ports you can have one device for many booths. Regular phones are used which is an advantage when looking to lower costs or when you fear they might be stolen or damaged at the booths.

More information: recommended VOIP devices for call shops

Cabling can be done in 2 ways: a) if IP phones are used then you must lay network cable from the Internet router to each of the booths (one cable for each booth), the cable is connected directly to the phone. b) if adapters are used then regular telephone cable is laid from the adapter to each booth. You must consider equipment and installation costs and preferably get assistance from a professional with cabling experience.

- Internet Service

In case where the call shop also has public access computers then it is strongly recommended to get a second Internet service for VOIP. If you use only one then there is high risk that the PCs will use up all the bandwidth and affect call quality. This can be accomplished by setting up completely separate network cabling or by using a router with 2 Internet ports programmed to separate PC network traffic from voice traffic.
The necessary bandwidth is about 40Kbps per booth. So a 512Kpbs service used exclusively for voice will handle more than 10 booths.
It is important to get a quality Internet connection, with low latency (ping time), stable bandwidth and no interruptions.

3. Internet Telephony Service

Voice Over IP (VOIP) is a technology that has revolutionized the telecommunications market by carrying voice over the Internet. Over the past few years it has developed and expanded to cover every corner of the planet and has become the new standard. There is currently a large international market of companies that offer all kinds of related devices and services.

In general VOIP service providers offer cheaper call rates than traditional carriers. Some reasons for this are: VOIP providers have service platforms that maybe used all over the world by many customers; transporting voice over the Internet is much cheaper than doing it the old way over private lines; also VOIP providers tend to be smaller more efficient companies with lower operating costs. On the other hand some providers have cheap rates just because they don't invest in quality connections and devices, which results in poor service.

Most VOIP services are pre-paid. Before hiring a service it is important to ask for a test account and make calls to several countries which you are most interested in, in order to verify call quality. No provider can guarantee 100% uptime and call completion so some occasional problems might be expected. You should select service that offer convenient payment methods, that show clear billing reports and call detail reports, and that have customer support staff in case you need assistance.

Given that most VOIP providers are located in the USA and Europe, it is normal for customer support and billing platforms to be located outside your country. Take into account that you may have to pay international money transfer fees and you might receive an invoice or receipt which has no fiscal value in your country. These issues tend to be minor when compared to the benefit of much lower call costs.

More information: see a list of recommended VOIP providers.

4. Call control and billing software

It is necessary to have some kind of computer software to keep track of calls and to take care of the billing process. The system should allow the shop manager to set per-minute sale prices and to see reports of calls made. For the cashier the system should provide a way to see booth status, amounts to charge and print receipts or invoices.

Generally, the store owner is not present at the shop during the day. This is why it is vital that the software keeps track of all calls accurately and does not allow any tampering with the call records. Also, to more efficiently manage the business, it is important to have remote access to call reports (so they can be reviewed at home, from another shop, during a trip, etc.)

Some VOIP providers offer billing software as part of their service. This is an advantage as it is a way to get the software for free. However it has a big disadvantage in that these systems work only with that VOIP provider. So if you later find another provider with better prices or quality it will be more complicated to make the switch. It is recommended to get a billing software that is open and will work with any provider to choose and allows to change your mind at any time.

When selecting a billing software you should consider the technical support that comes with it, ease of use and the availability of upgrades or improved versions. The field of telephony is rapidly changing and you do not want to be stuck with obsolete software.

The possibility to manage several stores from the same software platform is vital for companies with growth potential or existing businesses who own multiple shops.

More information: Call Shop Express - billing software for call shops and hotels. .

5. Legal and fiscal matters

It is important to note that telecommunication laws differ greatly from one country to the next. You also have to investigate about business licenses and tax obligations. Check with a trusted lawyer or accountant for more details.

About the author: Alonso Acuña is a computer specialist with more than 4 years experience in IP communications and 10 years experience in software development. He is General Manager of Call Shop Express which offers billing solutions for call shops.

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