Wholesale Carriers Market Evaluation of Industry Trends, Growth Drivers and Forecast To 2028

Voice over the top (OTT) providers are unarguably threatening the revenue generating potential of the global wholesale carriers market. Some of the largest OTT providers, such as Amazon, Google, and Facebook, have over the past few years invested large sums in buying fibers on submarine cable systems. The trend has gathered some steam in the market and is arguably posing a type of existential threat to wholesale carriers, contends market experts. The propensity of OTT providers to do so is fueled to a great deal by their appetite for data center-to-data center connectivity, without any regulatory hassles and without worrying about terrestrial backhaul.

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Nevertheless, the trends may lend a favorable dynamic for wholesale carriers, reason having to do with diverse needs of these OTTs. These needs also vary widely across the globe, with players in emerging markets dwarfed by inroads made by global OTT giants. This factor might pave way to large promising avenues to wholesale carriers in the not-so-distant future. Notably, they can gain a better foothold by offering cost-effective solutions. Furthermore, the changing dynamic of submarine cable business is one of the key factors likely to open promising avenues in the market. Strides that internet of things (IoT) and artificial intelligence (AI) has been making in recent years are also aiding in the rapid expansion of the demand for wholesale carriers. The growing number of open platforms bodes well for the wholesale carriers market. Moreover, the rising popularity of dynamic network distribution platform has underpinned lucrative avenues in the market.

Global Wholesale Carriers Market: Overview

The global telecommunication industry has witnessed several disruptions over the past several years. These disruptions are the fallout of several paradigmatic changes pertaining to regulation, technology, business models, and the evolving nature of competition. The staggering rise in data traffic in mobile and fixed networks has capped the revenue from voice volumes substantially. A large part of revenues voice traffic on international communication routes is being adversely affected by voice OTT providers. Coupled with this, retail telecom operators have been struggling with their declining revenues from their voice margins. These factors act as viable backgrounds for the evolution of the global wholesale carriers market. Wholesale carriers sell network capacity and wholesale services to third-party telecom service providers. Against this backdrop, international wholesale carriers are focusing on unveiling new services, reducing the vulnerability to voice, and migrating to new agile business models. That aside, even traditional global internet firms are reeling under substantial pressure to upgrade their bandwidth requirements. These all prove to be lucrative ground for the rapid evolution of the wholesale carriers market.

Global Wholesale Carriers MarketKey Trends

The declining relevance of the existing business models for retail network operators is propelling the need for new models that are more agile and software-drive. The rapid emergence of internet of things (IoT) is a key factor fueling the growth of the wholesale carriers market. The rising adoption of new technologies and models such as software-defined networking, IP exchange, intelligent voice platforms, and artificial intelligence is bolstering the expansion of the market. Growing number of OTT players migrating their services to the cloud also bodes well for the market.

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Global Wholesale Carriers MarketMarket Potential

Growing number of telecom providers working on digital transformation initiatives are focusing on adopting an array of digital wholesale services, notably influenced by cloud-based communication services. Various retail providers such as mobile virtual network operators, OTTs, and multinational corporations are leveraging new technologies for creating highly customized services, improving production or delivery processes, or integrating new consumer communication technologies into their service delivery chains. Wholesale mobile data providers are expected to make strategic moves in near future to offer a dynamic traffic and network distribution platform that can have diversity of applications. Some of these will be in e-education, e-health, and smart city technologies. Prominent players in the wholesale carriers are entering into partnerships to roll out new services, especially for SMEs. Recently, Voxox a leading provider of wholesale carrier service, such as SMS and voice, and cloud communications, in collaboration with Telecommunications Sdn Bhd, a part of Norwegian multinational telecommunications company Telenor, agreed to launch virtual phone system under the brand Omni Hotline. The service will focus on SMEs and small businesses in Malaysia and meet their emerging phone communications needs. Such partnerships expand the potential of the global wholesale carriers market.

Global Wholesale Carriers MarketRegional Outlook

The study offers a critical assessment of the recent developments likely to give rise to new revenue streams in various regions. The analyses also evaluates the factors that will drive the expansion of developed markets. On the geographical front, developing regions could emerge as potentially promising in the coming years. The vast potential can be attributed to the rapid pace of digitization in the telecom industry and growing number of internet providers seeking the services of wholesale providers.

Global Wholesale Carriers Market: Competitive Landscape

The study analyzes the key dynamics shaping the competitive landscape and the trends that can impact the ecosystem of offerings by various players in the global wholesale carriers market. Several wholesale providers are focusing on organic growth as well on mergers and acquisitions to bolster their product portfolio and consolidate their geographical footprints. The advent of open platforms will ease the barrier to entry of new players and is likely to raise the intensity of prevailing competition in the global market. Some of the leading players operating in the wholesale carriers market could be Optic Zoo Networks, Microsoft, iBasis, Facebook, Console Connect, and Amazon.

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