IP-based communications services, otherwise known as IP telephony, have been booming due to the proliferation of the Internet. The main drawback with Internet telephony service providers (ITSP) is that most are small-scale operations, which are unable to make the sizable investments in time and money that are required to secure international communication service areas.
With standard international calls, the service provider has needed to: 1) negotiate and conclude a contract regarding interconnection charges with each telecom operator in each individual country, and 2) set-up a direct network between the countries.
The clearinghouse service was created to overcome the aforementioned problems involving ITSPs. With the service, the clearinghouse operator handles routing of individual ITSPs and payment settlement operations.
ITSPs can establish global communications and promptly begin providing their services by establishing a single contract with a clearinghouse operator. Additionally, corporate users can gain access to the clearinghouse with gateway equipment and an IP network.