Wholesale Voice Carrier Market size worth over $45 billion by 2026
Published Date: August 24, 2020 Authors: Preeti Wadhwani, Smriti Loomba
Wholesale Voice Carrier Market size is set to surpass USD 45 billion by 2026, according to a new research report by Global Market Insights, Inc.
Wholesale voice carrier services are witnessing a spike in adoption as the number of smartphones and VoIP-based devices continue to witness an upward spike. Wholesale voice carrier services assist telecom providers and CSPs in planning, developing, and deploying innovative voice calling solutions at an affordable cost compared to traditional voice calling processes. This helps organizations in better serving their clientele and compete effectively in a dynamic market.
The unprecedented rise in the amount of global voice traffic caused by the COVID-19 pandemic has vastly supported the wholesale voice carrier market growth. As per June 2020 press release by i3Forum, a major telecom industry association, the international voice call traffic rose by 20% Y-o-Y in March 2020, and the duration of calls increased by up to 60% in April 2020 compared to April 2019. This has driven the demand for international voice termination services globally.
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Increasing penetration of LTE networks propelling the uptake of wholesale voice carrier services
The industry has witnessed a growing demand for voice termination services and international roaming in the wake of increasing LTE proliferation. The expansion of LTE networks globally has generated a significant disruption in the calling pattern of subscribers. Consequently, wholesale voice carrier services are increasingly becoming crucial to leverage the growing interest of consumers in high-quality voice calling. This has also led to reduced capital expenditure by deploying leased lines for delivering wholesale voice carrier services.
Increasing cost of fraudulent traffic to drive the fraud management segment
The fraud management services expected to witness more than 14% CAGR through 2026 due to the increasing stress on reducing financial losses caused by fraudulent voice traffic. According to the data released by Mobileum, Inc., a telecom analytics provider, the total cost of fraudulent traffic incurred by the wholesale voice carrier market exceeded USD 15 billion in 2019. Consequently, the importance of fraud management solutions for monitoring wholesale voice carrier services becomes paramount to ensure reduced losses.
Browse key industry insights spread across 250 pages with 223 market data tables and 31 figures & charts from the report, “Wholesale Voice Carrier Market Size By Service (Voice Termination, Interconnect Billing, Fraud Management), By Transmission Network (Owned Network, Leased Network), By Technology (VoIP, Traditional Switching), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increased cost efficiencies propelling the market growth of leased transmission networks
The wholesale voice carrier market from leased transmission network segment to register around 13% CAGR from 2020 to 2026. This is attributed to the growing uptake of leased network infrastructure for VoIP call termination across geographical locations. Multiple telecom operators are leasing a portion of network from regional players to set up their voice termination facilities in emerging markets. The highly competitive nature of the telecom industry has led to an increase in the number of tier-2 and tier-3 providers, who are increasingly leasing network capacities from tier-1 operators to maintain reduce total cost of ownership and gain profitability.
Prevalence of legacy telecom infrastructure to boost the market demand for traditional switching technologies
The traditional switching segment held over 65% of the global wholesale voice carrier market share in 2019. This is attributed to the high use of traditional (non-VoIP) voice calls by subscribers in developing regions due to existing legacy infrastructure. In addition, expensive cellular internet and limited choice of unlimited data packs have also refrained several subscribers from switching to VoIP, thereby increasing the market share of traditional switching technologies. As new mobile subscribers with non-LTE phones are increasing in remote and underserved regions, this is expected to further spur the market growth.
Rising subscriber count in Asia Pacific to accentuate the regional market growth
The Asia Pacific wholesale voice carrier market is set to attain around 30% of the global market share by 2026. The surging amount of unique mobile subscribers and declining roaming charges in the region have pressurized telecom enterprises across the region to rapidly adopt wholesale voice carrier services. Leading enterprises in the region including Bharti Airtel, NTT Corporation, and China Telecom have made hefty investments in expanding their voice and data infrastructure to accelerate the time-to-market for their VoIP-based wholesale voice carrier offerings.
Focus on inorganic growth strategies by key players to augment market share
The wholesale voice carrier market has witnessed several strategic acquisitions by major vendors to acquire marginal players and strengthen their market presence. For instance, in April 2020, Tofane Global SAS, a leading European telecom services provider, acquired NOS International Carrier Services, a wholesale voice and data provider in Portugal. The acquisition amplified Tofane’s footprint in Portuguese-speaking markets including Portugal, Brazil, Angola, Cape Verde, Guinea-Bissau, Mozambique, East Timor, Macau, Sao Tome, and Principe.
Some of the key players operating in the market include Alepo, AT & T, Inc., BCE Nexxia Corporation, Bharti Airtel Ltd., BICS SA, BT Group Plc, CenturyLink, Inc., China Telecommunications Corporation, CITIC Telecom International Holdings Limited, Deutsche Telekom AG, Emirates Telecommunication Group Company PJSC (Etisalat), Globitel, IDT Corporation, NTT Corporation, Orange SA, Singapore Telecommunications Limited, Sprint (T-Mobile), Tata Communications Ltd., Telefonica SA, Telenor ASA, Telstra Corporation Ltd., Verizon Communications Inc., and Vodafone Group Plc.