Posted on by Steve Shu

Pre-Paid International Calling Card Rates Sustainable?

Skype is the rage these days for many technology-savvy folks. Get free international calls when dialing from Skype user to Skype user from your computer. If you need to dial from Skype to a person in Europe who is on a regular landline, you can get rates in the range of 1.7 cents (Euro) per minute.

But have you explored international calling cards lately? I had to explore this because of some telecom issues reaching my wife in France and some of my international clients.

I had to do a triple take on some of the rates. Calling Europe can cost from 1.6 cents to 0.8 cents per minute for some calls using landline to landline calling. On top of that, some of these cards have toll-free 800/8XX numbers that people can call to initiate a call. Now 800 numbers in many cases cost the subscribing company around 25 cents per call to do the number translation from 800 to real telephone number. Now with an $10 international calling card that can do like 1250+ minutes of call time, you do the math to see whether these companies should be able to do this profitably. I mean off-the-cuff, 20 calls costs about $5 of the $10 card just to pay for the setup of the 800 call. Perhaps the prepaid card providers are profitable, but I wonder if there are either back doors or house of cards related to this (presuming that the technology to trunk the call from the United States to points of presence [POPs] internationally is IP-based). I mean someone has to pay for the underlying infrastructure IP is riding over.

Granted when you call the customer support line for some of these cards, it sounds like it is an answering machine from the 70s in someone’s basement, but heck, the call sounds perfect and of digital quality.

Anyway, compare the pre-paid international calling card rates to the $10ish/month fee that some local carriers have for making international calls plus the 8.0 cents/minute fees they are charging. Are any of these fees really outrageous fees? They are almost borderline outrageous on the low side. I feel bad for the traditional telcom customer service reps – people tell me that the reps are simply shocked when they hear about the international calling card rates being brought by pre-paid providers. The only thing the reps can do is try to cross-sell you into other service (e.g., mobile, satellite dish) when people drop their international call service.

30 Replies to “Pre-Paid International Calling Card Rates Sustainable?”

  1. I believe Skype fools many people by not telling them that it is a VOICE-OVER-IP system, which sends audio “information packets” through a modem, dsl, or cable line, then opens up much like a ZIP file does, only to have lost “information”, such as CLARITY and QUALITY of duration along its way to the opposite end.
    I, too, was once a believer in skype UNTIL I was introduced to quite possibly one of the better online calling card service: http://www.ohello.com
    They offer a rechargeable card with 1-minute rounding and NO hidden fees. The only fee is through a payphone, which the FCC regulates ANYWAY. That cost is $0.99. Calls across the U.S. are only $0.029! Definitely check it out, it has saved my family a lot of money on coast-to-coast calls, as well as overseas calls. It is truly a phenomenal service, check it out!

  2. Calling card services are able to offer a lower cost per minute overall in the long run because of their bulk sales. While technology like Skype (VoIP) is picking up, it won’t be for another few years that these services will be fully functional and effective – at least for international calling services. In the meantime, I would still stick with traditional calling card services.

  4. Quality IS an issues. No such thing as a free lunch. For roaming Roamabout lets me take my number. I use a pre-paid in the other country. I can make outgoing calls and I save. I also hear they are soon to release a calling card-like service for enterprise users but at Skype-like rates. Sounds like the best of worlds

  6. i found this new start up called Switch-Mobile which has solved the calling card problem. it’s the latest thing for cheap international calls – it’s going to be very big – and they are launching in europe this fall…www.globedialer.com

  7. I have been using skype for a long time.As I stay in France I can dial for euro of 0,017 per min and I can even send instant messages for a euro 0.108.Skype also provides a package of 12 months of unlimited calls to US and Canada for a 29.95$.If u want to know more about skype visit the website http://www.skype.com

  9. Skype and Vonage type services have a place, but calling cards and phone cards do also. Phone cards for placing international calls are an especially good value when specific calling card companies want to promote a new phone card. At these times, when releasing a new phone card, the minutes are usually pumped up for about 3 months, and the consumer can call philippines or ukraine or india for example and get hundreds of minutes for just a few dollars.

  10. This blog/article is more than 2 years already and since then phone card rates has almost dropped to dirt cheap level. For example, I’m using Onesuite.com prepaid long distance service and the rates are lower than Skype (which is using voip and supposed to be cheaper) for most countries outside the U.S.
    There are other type of phone cards too that has even lower rates but sometimes the increments varies from 3 minutes to 5 minutes which is not good if you don’t have a stop watch by your side or if you have calls that lasts only for a minute or 2. Different providers, different rates and different scheme. People can now choose what best suits their needs.

  11. Calling cards have become cheaper indeed. I have just come across this service called StanaCard and its awesome. They have a fantastic clarity and features. I have been using this card since last 6 months and very happy to continue it as I have used more than 300% of what I paid for just by referring to my friends. Yes !! its true.
    If you refer your pals with this site they give you pal 200% of the talk time on the initial charge and equal amount to you. Till date I have referred 3 of my friends and in 10$ got talk time more than 40$. Its awesome.
    On top of this there is no maintenance charge , no service fees , no account keeping charges , no hidden cost. You pay what you talk for . The rates are also very very competitive. The only catch is that if you want to get 200% on the first recharge you need to come thru a referral link. Yes if you directly go to the web site you DO NOT get the offer. The site belives in word of mouth publicity .i think. Here is the link in you guys wanna try –> http://www.stanacard.com/?ref=180955

  14. I’ve been using a company called WQN for years now to call to both India and UAE. The quality is great and the rates are very competitive. They give FREE minutes to their customers all the time with special bonus offers. They also have a loyalty program that gives their customers up to 3000 FREE minutes every 6 months. I’m able to get lots of free minutes to call my destinations with great quality.
    Check them out at http://www.WQN.com

  15. I’ve been using a company called WQN for years now to call to both India and UAE. There are no taxes, fees, or equipment to set up. The quality is great and the rates are very competitive. They give FREE minutes to their customers all the time with special bonus offers. They also have a loyalty program that gives their customers up to 3000 FREE minutes every 6 months. I’m able to get lots of free minutes to call my destinations with great quality.
    Check them out at http://www.WQN.com

  17. I’ve been using a company called WQN for years now to call to both India and UAE. There are no taxes, fees, or equipment to set up. The quality is great and the rates are very competitive. They give FREE minutes to their customers all the time with special bonus offers. They also have a loyalty program that gives their customers up to 3000 FREE minutes every 6 months. I’m able to get lots of free minutes to call my destinations with great quality.
    Check them out at http://www.WQN.com

  19. Did anyone try globedid?
    it is specialized in calling Philippine
    If purchase in USA, tax free.
    9.9 cent per minutes for local
    13.9 cent per minutes for cell phone
    1-888-931-6888

  20. Has anybody tried reliance calling cards?i have friends asking me to go for it since the voice quality is unparalleled and call drops are also very low.They seem to be offering the lowest call rates to india from the U.S at around 5.9 cents/min,with an addon of 120 mins free talktime as part of their diwali package.i have made up my mind,unless you guys can suggest something better

  22. I was using skype to keep in touch with my Japanese wife. But, the cost of a SkypeOut is comparable to a calling card.
    So, I use a calling card when I’m travelling around and “at work” (I have an international Bar at work). Skype I tend not to use so much as my wife is not always at her PC/laptop.
    Anyhow, I agree with the article

  24. all great suggestions! i know if you want to call either from the states to chile or vice-versa you can do it by only having to dial a local 7 digit number. the service that provides this service is marque directo. you can check out their website http://www.marquedirecto.com

  26. Ah the Skype hype goes on. Even though Skype didn’t start voip calling, they marketed it very good that voip or free calls is almost synonymous to the word Skype. What people don’t know is PC to PC calls is always free with Yahoo Messenger, MSN Messenger and other internet calling.
    Skype landline calls aren’t free and most people didn’t know that.
    Now I am a previous Skype user myself but found Yahoo Messenger quality to be better and my voip to landline calls are made using Onesuite prepaid calling cards which is actually cheaper than using Skype in calling the countries I called.

  27. Calling cards are still the best choice to make long distance calls. The price and accessibilty still beats voip and regular IDD services. I use Onesuite.com which evolves from a calling card company to all in one communication tool by adding VoIP and Fax to Email services in their products. Onesuite ates are very competitive and they provide 24/7 phone support.

  30. Well I don’t have a BT landline so I guess I still have to rely on my Onesuite prepaid calling cards for the meantime 🙂

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