How to Start a Telephone Company

The telephone business has undergone many changes since the evolution of long distance, cell phones and the Internet. Advanced services such as online access, GPS, cameras, music and videos applications are attracting new customers to the telecom industry. You can start a telephone company for landlines and cell/smart phone usage that focuses on low cost technology, open source software and the Internet. Starting a new company in this industry could become quite lucrative if you have the technology expertise and dedication to run a business.

Conduct an online or telephone poll with consumers in your area. Ask what services and products they like best and least. Find out which services they would like implemented.

Establish competitive prices for long distance, cell phone and Internet services. Research competing phone companies and cell phone providers in you region. Ask about their services and prices to help you determine your company's costs and fees.

Secure financing for your telephone company. Start-up capital can come from personal savings, lenders or investors. According to the website Asterisk VoIP News, you can start a telephone company for under $5,000. Expenses include business cards, website design and hosting, advertising and equipment. Your largest monthly recurring cost is associated with two elements of your telecommunication infrastructure: local access (T1/PRI circuits) and co-location.

Contact your small business administration for a business license. Obtain zoning and construction permits as required by your state and city government. Building your infrastructure may require building telephone lines, constructing satellite towers, digging underground and installing wires.

Purchase an Intel P4 server, a backup drive and Linux software. Linux can be used as a server operating system or as an embedded software in devices such as smart phones.

Download software for an open source TDM/VOIP PBX telephone system. Look for free downloads on the Internet.

Find your telephone carrier PBX in a host environment. They provide power and access to numerous circuits in a single location.

Download a network interface for the software you have chosen to install. Purchase a quad card. Consider using 2 PRI cards which can cost around $800. Negotiate prices for PRI circuits with your sales representative.

Create software applications for mobile and smart phones. Applications range from GPS, calorie counting, music player and games. Partner with a company such as Apple (iPhone) after you have created your phone applications to reach more customers. Offer accessories for your cell phones that are user friendly and fashionable.

Hire a telecom technician who is experienced in using Linux, data and voice programs to assemble the platform and your interconnections.

Place ads on radio, television and billboards. Distribute promotional fliers in your community to advertise your telephone company.

Tips

  • Join your local Chamber of Commerce for networking and promotional opportunities.

Warnings

  • Business laws are different in each state. Hire an attorney to help you start a telephone company.

References

Resources

About the Author

Lucy Bowles is an avid freelance writer from Indianapolis. She has written for various websites since 2009. As a certified paralegal Bowles has worked in the areas of business, intellectual property and entertainment law. She has a bachelor's degree in history and a minor in legal studies from Indiana University.