International Wholesale Voice Carrier Market Trends

Growth Drivers

• Technological advancement in networking: Continuous developments in the global network infrastructure have fueled innovation in the market. The adoption of 5G and improved fiber-optic networks has enabled faster and more reliable voice transmission. This has further promoted growth in the global telecommunication industry. Companies are now being inspired to bring advanced technologies to deliver more efficient voice carrier services. For instance, in October 2024, Deutsche Telekom launched a new all-in-one portal of digital services for wholesalers. This one-stop-shop approach offers an easy-to-use interface to maximize geographical coverage and competitive advantage.
• Global business expansion: The growing trend of expanding businesses globally has increased demand in the international wholesale voice carrier market. Globalization often requires reliable and cost-effective international voice services, boosting the wholesale industry. Companies are now leveraging their communication solutions by integrating cyber breach-preventing features to help businesses outstretch overseas securely. For instance, in February 2023, XConnect joined the i3forum to reduce voice and messaging fraud in the international telecom ecosystem. The company will collaborate with other global leaders to develop solutions, standards, and strategies for building trust on phone number identity such as CLI.

Challenges

• Decreasing profit margin: The decline in per-minute rates for international voice traffic can impact the revenue in the market. The intensified price competition due to alternative traffic routes may bypass the traditional telecom networks. This may further make it difficult for service providers to secure a profitable margin. Transitioning from PSTN infrastructure to VoIP is also costly for many legacy networking solution providers, limiting adoption in the sector.
• Concern about compliance: Maintaining compliance with the regulatory framework of different countries may be complex for the participants of the international wholesale voice carrier market. The diverse conditioning from tariffs, taxation, and interconnection agreements may also hinder the process of global expansion. Regulations such as GDPR may cause delays or additional expenses for companies to leverage their services for a new consumer base.