In this highly structured post we will cover the Calling Card Business Model, which is based on the Business Process Canvas and Lean Canvas. This business model describes the scenario where calling cards are printed and sold somewhere other than the internet (mostly directly, in local communities).

PROBLEM

People want a cheaper way to talk than what is offered by their mobile operators.

SOLUTION

Provide cheaper ways of making phone calls by using calling cards.

INFRASTRUCTURE

Key Partners

• VoIP Traffic Provider
• DID Providers
• Softswitch company
• Server/Hosting company
• Distributors and sellers of printed cards

Activities performed by partners:

• Support
• Quality monitoring
• Sales/Distribution of calling cards 
  

Key Activities

• Find/negotiate good rates
• Provide stable service
• Solve problems when they arise
• Extend distribution channel
• Collect money

Key Resources

• Personal connections – guarantees distribution channels
• Money reserve – because often cards are issued using credit, without being prepaid
• Business acumen – to resolve technical problems and guarantee stable, worry-free user experience

OFFERING

 Value Propositions

• Price reduction – calls are cheaper
• Additional convenience – pinless service, short numbers, etc

CUSTOMERS

Customer Segments

• Local migrant communities
• Students from abroad
• Travelers

Channels

• Dealers
• Local shop owners
• Hotels/Airports

Customer Profile/Relationships

• Direct
• Often needs personal assistance
• Not very sensitive to quality
• Sensitive to the convenience of usage

FINANCES

Cost Structure

Most important costs:

• Traffic
• Softswitch
• Server
• Card printing
• Distribution

Revenue Streams

Customers are willing to pay for:

• Cheap cards
• Worry-free usage
• Quality

A huge amount of profit comes from additional calling card fees.

Let us know if we missed anything.

For more information check this article: “The 15 Minutes Business Plan: Business Model Canvas for Validating Your Startup Idea Fast“

Here’s why:

• It shows the most comprehensive free description of all building blocks of the business model canvas,
• It includes actionable tips, stats, and insightful graphs, so that every entrepreneur (or people who want to start a business), know exactly what and how to validate their business idea.