For what it's worth, I would echo the thoughts of Steve and Praveen insofar as to express scepticism about the prospectus for a calling card company at this point. The obstacles aren't really technical in nature; the platform problem can be solved many different ways and the solutions are well-understood. However, there are financial hurdles in that if you intend to do it right, you need real capital, as Steve said. But the real problem really does lie in the marketing and actually getting the business. It's really hard, and you're going up against an extremely saturated market with some deep-pocketed competitors.

On the other hand, if you do have a very specific business plan in mind, I wouldn't say it's a complete non-starter. There are demographic segments of the population that are very attached to phone cards by force of custom and habit; first-generation immigrants come to mind, as well as older people who take a dim view of online purchasing due to concerns about credit card fraud and so on. The other upshot is that these people don't tend to be exceptionally price-sensitive; your prices will have to compare favourably to your most visible competitors in the particular markets in question, but aside from that, it's not (yet?) the most brutal, acute race to the bottom playing out in the VoIP arena as far as I can tell.

It is possible to identify, reach and effectively market to such people, and it is important to remember that the audience of this list and like-minded communities is not representative of the general population.

The biggest problem with getting anyone to invest in and/or fund it is that it is by definition a declining market, at least in view of the aforementioned marketing orientation. Calling cards are used by people who are reticent toward, ignorant of or unable to afford Skype[1], other VoIP options such as Vonage, traditional PIC'd long-distance offerings, etc. This is understood to be a shrinking segment of the population, as the adoption and lifecycle of the more contemporary options progresses into further stages of maturity. Would you invest in my company if I told you I was going to mass-market to a shrinking and non-renewing market?

Others here who are actually in the international termination business can comment more effectively than I on the cost burdens and margin picture of particular routes to particular places. There is no doubt that as with everything in the VoIP cottage industry, the margins arising from arbitrage opportunities and pure resale plays are rapidly shrinking.

Honestly, I'm torn:

On the one hand, ideologically I want to concur with the people saying there is yet a good opportunity for a high-quality, high-value offering with good support and execution. I mean, sure, in principle, the last thing we need is another "VoIP + ? = $$ PROFIT! $$" basement operation from a machine on a residential DSL circuit draped in dirty laundry selling shit grey routes full of FAS and transported over latent, unreliable links using G.729A. We've got plenty of those around here.

On the other hand, the rather bureaucratically heavy-handed[2] and capital-intensive angle from which you seem to be coming at the problem prompts the inevitable gut reaction that you're a bit late to the party for that. Some sort of realistic concession to reality on the cost factors and time to market is almost certainly necessary if you want to try this.

Most importantly, though, have a really, really good idea of exactly who you're going to sell to, and bet the farm on it.

-- Alex

[1] Not Skype itself, of course, but computers and quality broadband service.


--
Alex Balashov - Principal
Evariste Systems LLC
260 Peachtree Street NW
Suite 2200
Atlanta, GA 30303
Tel: +1-678-954-0670
Fax: +1-404-961-1892
Web: http://www.evaristesys.com/

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