Since the popularity of the VOIP is growing fast, hundreds of entrepreneurs are venturing in this kind of industry. A business offering several free services without the possibility of bankrupting their finances or getting a second mortgage to fund this kind of business is one of the reasons why many are aspiring to get into this thing. What are the other factors that make them interested in VOIP business?

First thing that they consider is the benefits that the target clients can get from VOIP services. Of course, their nearest competitor, the regular telephone companies, will be just a piece of cake from them. They always bear in their minds that they have the technology that they need-Internet, digital data processing-in short they will use Internet technology in their advantage. Another thing is that services acquired through Internet are cheap enough to use its services.

According to a financing website, the rate usually imposed on Internet users ranges from $45 to $50 per monthly subscription. So if they will build a VOIP phone service firm, and can acquire as much subscribers as they can, they will eventually be profiting in just a matter of months.

Buying equipments that will be used in VOIP is not as much expensive as building a telephone company with complete equipments. Let us compare the initial capitals that can start said two businesses.

For a telephone company to be established, you need to build a telephone transmission tower, satellite offices, and transmission centres. You also have to build a main office, purchase thousands of yards of telephone cables, telephone handsets, adaptors, telephone posts, and other equipments.

These are needed to operate your telephone services in a fast phase. Then, you need to hire employees to run the company. The total cost for all of this is estimated to be $20 million.

It is impossible to raise such vast amount of money in just a little time. In VOIP, you will just to have your main office, purchase some personal computers and its accessories, and a mean amount of personnel, which is estimated to be around $1.5 million, if you will apply for early expansion of your VOIP business. $20 million against $1.5 million with few satellite offices-it's for you to decide on that matter.

And lastly, the business strategy that a VOIP can offer is a plus point for aspiring telecom entrepreneurs. VOIP has several services that are free of charge for their customers.

These are caller ID, call waiting, voicemail, and other features charged by telephone companies because they want to recover their capital as soon as possible. One of the common strategies in putting up a business is to give services at small and affordable costs for its subscribers, and VOIP is offering it.

And in addition, VOIP businesses are flexible-they can easily adjust to price change and at the same time not affecting their own rates imposed to the customer, while the ordinary telephone businesses are govern by different factors-depreciation, high cost of electricity and fuel- enough reasons for them to adjust their rates in a higher step.

It's up to the investor how he will enter the VOIP market and throw money in such business. All the advantages and disadvantages are determined, and it's up to him if he can take the risk and accept different consequences. But as just veteran VOIP entrepreneurs always says, they have the "alas" in the telecommunication business-the VOIP technology.