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Posted by Norman Dean on February 5th, 2021

Wholesale carriers face a growing number of challenges, including considerable changes in their revenue mix, an ongoing shift from voice to data, increasing focus on mobility, and a dent in revenue due to OTT services. Despite the many challenges in the market, wholesale carriers still have an opportunity to generate revenue for their company. For many years, the wholesale voice business model focused on offering a set of generalised products and connecting customers from one person to the other. Today, this way of doing business will no longer suffice. User experience is growing in importance across all industries. Like other industries, wholesale carriers can adopt a new business model to meet demand. The traditional business of wholesale voice is in consistent decline. This is primarily due to the exponential rise of OTT services and VoIP services such as Facebook Messenger, WhatsApp and Skype. Wholesale carriers are forced to evolve, in line with the growth in next-generation network services and particularly the adoption of VoIP, which has surpassed traditional traffic volumes for the first time. According to Telegeography, OTTs delivered 40% more international voice traffic in 2017 than all the global telecoms companies combined. However, this does not mean that revenue no longer exists the invoice. It is an opportunity for wholesale carriers to offer capacity and manage international communications, serving the needs of retailers, mobile network operators and global enterprises. For industry survivors, there is a significant amount of revenue to be earned. However, like other industries, this will only be the case for those willing to embrace the disruption caused by the digital transformation.

Furthermore, wholesale carriers can find many other ways to grow revenue. There is an increasing demand for data, cloud and digital services. An influx of data in the network essentially means a market for new fibre routes, more subsea or terrestrial cables, and better networking to cope with the increased demand. Similarly, more data flowing through the network means a more significant risk and impact in the event of network outages. Wholesale carriers are expected to plan for diversity, resilience and high availability to build more robust network infrastructure. Suppose wholesale voice   Wholesale carriers are at a point where they must diversify to offer a range of managed data centre services, co-location space and global internet connections. These capabilities are further enhanced with cloud support, network function virtualisation (NFV) and software-defined networking. If they do not evolve with the digital transformation, they will eventually become obsolete. In this respect, providing wholesale services involves supporting a combination of physical and virtualised infrastructure and managing various processes. The customer of a wholesale carrier expects to use multiple benefits, including access to data centres and co-location facilities, in addition to a globally available wholesale network. This also means there is a reduced need for CAPEX investment due to infrastructure sharing.