Finding a voice Unleashing the business potential of the wholesale voice carrier market

The wholesale voice carrier market is oft overlooked in the exciting world of digital, but it is a vital part of the $1.5trn global telecoms market and continues to go from strength to strength. Here, Guddu Kumar from Research Nestor looks at the market and assesses where it is heading

It would not be an understatement to say that communication has become the lifeblood of today’s business cycles. The telecoms industry is steering global economic growth. Moreover, it is responsible for almost 2.51% of global GDP having a worth of $1.51trn in the year 2023. In recent years, the industry has evolved exponentially and has provided advanced solutions for conducting communication. Various telecom companies are including wholesale voice carriers to enable immaculate voice communication. For instance, wholesale voice carrier technologies provide facilities for service providers to enable cost-effective and smooth international call termination. By initiating robust voice origination and termination procedures, wholesale voice carriers can ensure top-notch communication services.

In the current world, the wholesale voice carrier has become crucial for ventures seeking growth in the telecom industry. So, why is the wholesale voice carrier market so important to the industry?

Cost-effectiveness: The inclusion of wholesale voice carriers in telecom companies helps reduce costs as it allows voice traffic to be transmitted over data networks. Significant cost saving through wholesale carriers is one of the primary reasons, telecoms are turning for adoption.

In a survey, it was found that almost 41.2% of respondents confessed that they would change their voice carrier at a lower cost for the same service. Cost efficiency has now become a deciding factor for the growth of telecom companies.

Seamless integration: The technology of voice termination integrates with all communication systems such as email, fax, messaging, and video conferencing. Consumers are demanding sophisticated telecommunication integration and consider various parameters while opting for a telecom partner.

Network expansion: The other prominent benefit of integrating wholesale voice carrier technologies is the flexibility to expand the network. Business associates traveling overseas have a desire to remain connected with colleagues and consumers.

Reliability and security: In a survey conducted in the year 2022, it was found that almost 70.2% of small businesses want telecom providers to provide secure traffic. While accessing cloud-based services, reliability and security have become pivotal for consumers.

Enhanced call quality: Companies are leveraging advanced infrastructure, these wholesale voice carriers handle call capacity, routing, and quality by ensuring reliable connectivity. It has been estimated that every fifth business is churning to seek better call quality. Telecom market players are emphasizing inculcating robust call quality.

Fraud mitigation: The statistics related to the fraudulent call are staggering as in the year 2023, the Federal Trade Commission received more than 330,100 reports of business impersonation. To eradicate this problem, various telecom sectors are adopting wholesale voice carriers.

Wholesale Voice Carrier Market Analysis

The wholesale voice carrier market is anticipated to surpass $149 billion by the year 2036. The market is expected to flourish at a CAGR of 13% and garnered almost $43 billion in 2023. The growth of the market can be attributed to the following factors:

• Surging requirement for worldwide corporate connectivity

• Rising initiatives to optimize enterprise costs for communication services

• Increasing usage of mobile devices and various communication mobile platforms

• Increasing initiatives toward a scalable cloud-based communication system.

However, factors such as fluctuations in termination rates and diverse regulations across various countries are some of the growth-hindering factors for the market.

Some of the prominent companies in the domain are AT&T, BCE, BT Group, Century Link, China Telecommunication Corporation, Sprint, Singapore Telecommunication, Tata Communication Ltd, Deutsche Telekom, BT Group… the list is long.

In February 2024, 5G KPN, a Netherland-based company, joined iBASIS to extend their mobile and voice services outsourcing contract. The alliance will continue to serve for the next three years.

In 2019, Vonage purchased Over.ai, to improve its programmable communication solutions. The company believes that leveraging these capabilities is projected to empower services and reduce wait times to 0.

Furthermore, the North American region is expected to garner a significant share of the large adoption of smartphones and the presence of a huge number of telecom providers. In the year 2023, there were almost 1000 wireless telecommunication carrier businesses present in the US.

IN A NUTSHELL

The above discussion illustrates that it has become crucial for the telecom industry to adopt wholesome voice carrier facilities to excel in the market. The widespread adoption is augmenting the growth of the market during the forecasted period.

However, businesses that are planning or already venturing into the domain are required to exhaustively understand the market intricacies. A survey conducted in 2022 suggested that almost 91.2% of businesses say that by utilizing market research data, they have increased their sales. Comprehensive market research for the market entails factors such as market growth driving factors, constraints, regional analysis, etc. These factors help excel and take sound decisions for the business.

Guddu Kumar is from Research Nestor

Source: www.researchnester.com/reports/wholesale-voice-carrier-market/6106