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    OPINION Wholesale voice carrier market: top trends propelling the industry demand through 2026

    According to a recent study from market research firm Graphical Research, the global wholesale voice carrier market size is poised to expand at substantial CAGR during the forecast period, writes . Thanks to the growing indispensability of smartphones worldwide, the global wholesale voice carrier industry outlook is expected to benefit from the massive voice over internet protocol (VoIP) demand.

    The market is expected to make a significant headway between 2020 and 2026 on account of the trending commercialization of 5G technology worldwide.

    Due to the augmenting adoption of smartphones, VoIP traffic is growing. The utilization of mobile internet and data-intensive voice calling applications are responsible for the rising VoIP needs. As investments pour in across the global telecom industry, expansion of telecom infrastructure and networks is likely to foster opportunities for the global wholesale voice carrier market forecast.

    CenturyLink, IDT Corporation, Vodafone Group Plc., Orange SA, Telefonica SA, Deutsche Telekom AG, BT Group Plc, Bharti Airtel Ltd., Sprint (T-Mobile), BCE Nexxia Corporation, and Alepo are some leading wholesale voice carrier companies in the international landscape. The following seven trends are accelerating the industry forecast:

    • Leased network demand in North America

    The deployment of leased network infrastructure is growing across North America. In the highly competitive telecom industry, tier-2 and tier-3 providers have been leasing network capacities to a considerable extent from tier-1 operators. They have been doing so to benefit from the minimal cost of ownership to maximize profitability.

    North America wholesale voice carrier market share from leased network segment is anticipated to grow at a 10% CAGR up to 2026. The growth can be accredited to the growing need for leased network in VoIP call termination in the region. Prominent telecom operators are leasing a part of their network for setting up voice termination facilities across emerging markets.

    • Transmission switching technology in North America

    The wholesale voice carrier industry share from transmission switching segment accounted for more than 50% of the total North America market during 2020 and is slated to expand further. The considerable dependence on traditional voice calls in the lesser developed North American regions is driving demand for the technology.

    Rural areas face the challenge of limited wireless network availability. Since a large percentage of the rural population relies on traditional voice calls, the use of transmission switching is likely to expand through 2026. Several wholesale voice providers are offering minimal cost and time of installation, optimal life of switch, and unitized configurations.

    • Strategic partnerships by Canadian telecom enterprises

    Canada wholesale voice carrier market size is expanding at a rapid pace, thanks to the growing 5G commercialization across the region. Canadian telecom operators are making the most of the partnership opportunities for delivering 5G services. They are focusing on diversifying their offerings through their strategic moves.

    For instance, Telus Corporation announced its plan to partner with Huawei for launching a 5G network in Canada in February 2020. In compliance with the regulatory government standards, the partnership was fruitful in launching new, efficient solutions and devices. Thanks to the access to high-speed internet, enterprises can leverage IP-based telephony services.

    • Adoption of interconnect billing solutions in Asia Pacific

    Interconnect billing solutions are gaining traction throughout Asia Pacific. The key reason these solutions are becoming mainstream is that telecom operators find convergent billing systems useful in accelerating digital transformation. The APAC industry share from the interconnect billing segment is slated to grow at a 10% CAGR through the assessment timeline. By 2026, total APAC wholesale voice carrier market size is expected to surpass $7 billion.

    • Increasing telecom frauds in Asia

    The alarming rise in fraud frequency across the regional telecom sector is influencing Asia Pacific wholesale voice carrier market. The requirement for fraud management solutions is growing due to this trend. As per the 2019 data published by Trend Micro, a Japan-based cybersecurity firm, the annual cost from telecommunications subscription frauds was estimated at $12 billion, equaling between 3% and 10% of the gross revenues of regional operators.

    Asia Pacific wholesale voice carrier industry share from the fraud management segment is expected to rise at a 12% CAGR through 2026, promoted by the surging focus toward fraud prevention. In order to ensure reduction in losses, the significance of these solutions is gaining popularity.

    • Growing subscriptions for VoIP services in Europe

    The number of VoIP subscriptions are augmenting across European countries. The preference for VoIP-based calling is growing amongst regional subscribers due to the tendency to avoid the higher costs associated with traditional voice calls.

    The industry share from the VoIP segment in the region will register around 13% CAGR through the next five years. VoIP-enabled wholesale voice carrier services provide enhanced technologies to telecom companies, simultaneously eliminating the unnecessary charges associated with roaming.

    • Gradual shift to voice termination in Europe

    Europe wholesale voice carrier market size is slated to reach $11 billion by 2026, thanks to the presence of a robust commercial network infrastructure in the region. Since voice termination involves substantial routing costs and international call termination across multiple networks, wholesale voice providers can benefit from significant opportunities provided by this solution.

    The region is seeing a shift from conventional voice and data services to more profitable and efficient solutions provided by regional wholesale voice termination service providers. Europe wholesale voice carrier market share from voice termination segment is expected to represent more than 70% of the total industry by 2026.


    Pankaj Singh is Assistant Manager – Content, at Graphical Research

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