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Class 4 Softswitch Solution: The Future of Wholesale VoIP Business

  • November 29, 2023

The wholesale VoIP segment defines the popularity of VoIP in long distance calling. Certainly, cheap rates of international calling using VoIP are possible with the wholesale VoIP industry. The class 4 Softswitch solution is helping VoIP service providers win more clients and capture more untapped business opportunities with its powerful features. Moreover, it makes the world more connected. A class 5 Softswitch solution is often acknowledged for its powerful features and benefits for small businesses to large scale enterprises. However, a wholesale Softswitch manages a much more important role in completing the telephony ecosystem.

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This VoIP Softswitch solution manages multiple jobs. However, one of the most traditional and important processes that Softswitch manages is VoIP routing. Conventionally, a class 4 Softswitch solution is used to do only call routing. However, with innovation and consumer demand, more features were added to this software. Even in routing, it started routing a variety of traffic like voice, video, multimedia, data, and more. Furthermore, multiple types of routing rules are invented that define the performance of high quality switches. In short, there are multiple innovations that define not only the present but also the future of wholesale VoIP routing and business.

This is one of the most interesting topics for anyone using long distance calling services or offering international calling services. To give more insight, we will cover all insightful details for each important point.

1. Understanding Class 4 Switch

Class 4 Switch

It is a software switch solution that manages wholesale VoIP traffic and routes the traffic using IP networks from source to destination. Furthermore, this switch solution selects call routing trunks and carriers smartly using different algorithms. In addition to that, it also makes it possible to exchange VoIP traffic between different networks with transcoding and protocol conversion features. In short, the modern class 4 Softswitch solution are loaded with advanced features that make international calling seamless and cost efficient.

The role of this switch is crucial because it sits in the middle of the whole SIP telephony network and manages VoIP traffic. Certainly, it makes calling possible across networks with its powerful features and functionalities. Therefore, it defines the present and future of the VoIP network altogether.

2. Importance of Wholesale VoIP Routing

A wholesale Softswitch manages multiple carriers, operators, and networks to enable international calling business. Furthermore, this software is capable of building a sustainable business with its capacity to manage thousands of concurrent calls per second (CPS).

Routing is an important function in the telecommunication segment. Even in the PSTN telephony network, the routing feature is important because it collects data or voice packets from the sender and delivers it to the recipient to make communication possible. In the VoIP network, routing becomes a bit complicated. Certainly, there are multiple routes and conditions to choose one of the route or termination gateways for the Softswitch solution. However, the best VoIP development company develops high quality and smart Softswitch solutions. These solutions have the logic to select and delegate VoIP traffic efficiently. Furthermore, route selection is crucial because it assures high quality of calls and services.

In the wholesale VoIP routing, the class 4 Softswitch solution needs to manage massive traffic. Furthermore, the modern switch solutions have to manage a variety of traffic. In addition to this, there are several security concerns, VoIP related quality challenges, and multiple other types of hindrances. All these make the job of VoIP routing more crucial and vital. Automation and smart routing is the key to managing wholesale VoIP routing without any hiccups and issues.

3. Major Types of Wholesale VoIP Routing in a Wholesale Switch

Wholesale Softswitch

Traditionally, a wholesale VoIP Softswitch solution offered only a single call routing strategy and that is LCR (Least Cost Routing). However, as technical advancements took place, more features were added to this software. Undoubtedly, routing is the main job of this Softswitch solution. Therefore, several companies focused on introducing different routing features to manage wholesale VoIP traffic efficiently. Moreover, these features will provide the required flexibility to choose what a customer demands rather than monotonous features. In addition to that, these routing rules are effective in building diverse tariff and revenue generating models.

There are multiple types of call routing features available in a modern class 4 Softswitch solution. Let’s look at the majorly available top 5 of them in brief:

Least Cost Routing (LCR)

It is the most conventional call routing strategy available in this solution. As the name suggests, it chooses the cheapest route to traverse VoIP traffic from source to destination. As a result, the user receives the cheapest calling rates.

Prefix Based Routing

The system routes calls based on the prefix number of the recipient. It also chooses a cheap route out of available prefix based termination options to route the call.

Priority Based Routing

Some customers require premium services. Therefore, priority based routing covers this type of client. The customer calls are queued and routed depending on the priority set by the operator.

Hybrid Routing

This is an advanced call routing strategy that combines two different call routing strategies. It is an innovative way to manage calls. Moreover, it gives a competitive edge to consumers.

Lossless Routing

This call routing strategy overlaps certain rules to provide more appealing services even if it may cause some loss for the operator. The use of this routing strategy is when you have provided group discounts or are trying to win a big account with a trial offering.

4. Major Advantages of Wholesale VoIP Routing


Modern class 4 Softswitch solutions automate the process of route selection, transcoding, protocol conversion, and more. As a result, the VoIP routing process becomes more efficient and seamless. Furthermore, it also saves resources to channel them into other business aspects.

Better Reach

The modern wholesale switch is easy to use and manage. Furthermore, configuring routing rules is a cakewalk for wholesale providers. In addition to that, these platforms provide integrated reseller models. This helps wholesale VoIP business users reach new territories and partner with multiple termination providers and carriers.

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Furthermore, they can manage a large scale business. In short, a wholesale VoIP service provider can reach new territories to join hands with business associates and capture new clients.

Diversity of Features

The modern Softswitch solution comes with an array of features. Therefore, along with VoIP routing, several other services are easy to offer with this solution. Moreover, a diverse feature range helps business owners design different VoIP tariffs and subscription packages to make their business profitable.

Compatibility and Portability

The advanced wholesale switch solutions provide inbuilt features for codec transcoding, protocol conversion, and more. These features ensure that even if the sender and receiver have completely different platforms, codecs, and protocols, they can exchange VoIP traffic. As a result, wholesale VoIP business owners can work efficiently without any hindrances in their operations or growth.


The modern wholesale VoIP Softswitch software solutions are extremely flexible. You can set them at your convenience. Moreover, you can integrate different tools and software within this software. This helps in offering better services. Moreover, it also helps in capturing cross-selling and upselling opportunities to increase revenue generation.

Read our recent blog post covering How the Evolution of the Class 4 Switch is Revolutionizing the Communication Industry. It covers how over time, this switch evolved in terms of features, functionalities, and other components. Moreover, it also covers different milestones in the telephony industry.

5. Wholesale Switch Defines the Future of Wholesale VoIP Business

Wholesale VoIP Softswitch

As we have been discussing, the class 4 Softswitch software is defining the future of wholesale VoIP business in multiple ways. Let’s understand how it happens.

Revenue Model

The class 4 switch itself is a powerful tool with a host of features. However, we are talking about just one feature of it and that is VoIP routing. The whole SIP telephony ecosystem is dependent on this single feature. As a result, the major functionality of this Softswitch solution revolves around VoIP traffic management and routing.

All wholesale VoIP providers define their tariffs and packages around routing features. In short, their revenue models revolve around VoIP routing features. Therefore, these features are definitive factors that drive future success for this industry.


VoIP routing is a vital function in the wholesale VoIP business. Therefore, attackers are trying to seize this area to hamper the interest of clients and wholesale VoIP providers. This can cause major security threats to businesses. Therefore, the companies offering wholesale VoIP Softswitch software focus on building secure routing functionalities.

One can use a fraud detection and management solution that helps in building a sustainable platform. Furthermore, security features are easy to configure with advanced Softswitch solutions. For example, prefix based call routing rules are configured to ensure only a preset limit of call minutes are allowed for countries with junk calls or fraud calls.

Security is consolidated to make wholesale VoIP business more reliable and thriving. Security features and breach protection are redefining the whole wholesale VoIP business landscape.


The Wholesale VoIP industry covers a huge market of the VoIP business. Furthermore, an array of lucrative benefits available to VoIP users attracts more consumers to use SIP telephony. Startup companies, enterprise users, individual consultants, and several other business professionals need to use high quality yet cheap international calling services. In a nutshell, trends are inclined towards the use of class 4 Softswitch software for long distance calling. This demands a highly scalable solution.

This software is definitely scalable in its nature. Moreover, development companies are using technologies and frameworks that make it possible to build high availability and high performing wholesale switch solutions. For example, FreeSWITCH uses modular architecture. This platform makes it possible to build a cluster of each component. Furthermore, it can achieve 99.95% of uptime SLA (Service Level Agreement) to provide round the clock services.

High scalability assures several advantages, including, but not limited to high availability and superior quality of service. This is one of the driving factors that define the growth of the wholesale VoIP market. Moreover, it will also bring more revenue generating opportunities to empower wholesale VoIP businesses.

Quality of Service (QoS)

Traditionally, businesses were primarily focused on securing cheap long distance calling options. However, the priorities have shifted significantly in recent years. Businesses are now more inclined to prioritize quality over cost, seeking value for their investments rather than simply aiming for the lowest price. This emphasis on quality extends to the realm of voice over IP (VoIP) services.

In this discerning business landscape, a wholesale VoIP Softswitch solution emerges as a game-changer, offering a comprehensive suite of advanced VoIP routing features that empower VoIP service providers to deliver exceptional quality of service (QoS). These advanced features, such as lossless routing and hybrid routing, cater to the discerning needs of business customers who prioritize quality over mere cost savings.

VoIP Billing Solution plays a pivotal role in ensuring that businesses reap the full benefits of the superior QoS offered by wholesale VoIP Softswitch solutions. By providing granular control over call routing and enabling real-time visibility into call quality, VoIP Billing Solution empowers businesses to optimize their VoIP infrastructure and maximize the value derived from their VoIP investments.

This Softswitch is also going through radical advancements and enhancements. The intervention of technologies like Artificial Intelligence (AI) is introducing more powerful routing features. For example, smart routing with real time route selection based on complex criteria is going to be a new and hot feature of this Softswitch in the near future.

All this and several other driving factors are empowering wholesale VoIP service providers to deliver excellent quality of service. Moreover, they can build more revenue generating opportunities with this powerful switch.

Concluding Notes

The modern VoIP Softswitch solution is the pivotal tool redefining the future of the VoIP industry.  Certainly, a wholesale switch is an irreplaceable element in this industry. Therefore, there are several innovations and inventions taking place around this software. It supports an array of features along with its primary feature of VoIP routing. Definitely, routing is the main function of this software. Therefore, several inventions revolve around this feature.

We offer a powerful class 4 Softswitch solution with multiple call routing features. Furthermore, we also provide the required customization in the software. To learn more, please contact us.