Wholesale Voice Carrier Market Size, Trends and Growth Analysis by 2027

The global wholesale voice carrier market is projected to expand from US$ 23,139.03 million in 2021 to US$ 31,754.36 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.6% during the period from 2021 to 2028.

Historically, the pricing model for wholesale voice carriers was characterized by a fixed charge per call, which varied significantly among different providers. However, recent regulatory changes have intensified competition among new entrants in the market, leading to a more favorable pricing structure for consumers. Traditional telephony services have been subject to regulations that often resulted in monopolistic or oligopolistic market conditions. Consequently, pricing strategies were primarily influenced by companies' revenue goals and their desire to dominate local markets. This has made Voice over Internet Protocol (VoIP) services between 40% to 80% cheaper than conventional telephone services, as VoIP relies on internet connectivity rather than traditional circuit-switched networks. Furthermore, traditional calls typically require longer distances to be covered and maintain an open circuit during the call, whereas VoIP only necessitates a reliable internet connection.

A survey conducted by Telzio, Inc., a provider of VoIP services, revealed that small businesses could potentially reduce their telecommunications expenses by nearly 50% by adopting VoIP solutions. The initial setup costs for VoIP systems are minimal compared to the nearly US$ 20,000 required for an on-premise phone system. The advantages of lower operational costs, the elimination of call waiting and voicemail fees, and reduced relocation expenses are driving the growth of the wholesale voice carrier market.

The wholesale voice carrier market is categorized based on several factors, including service type, transmission network, technology, and geographical region. In terms of service, the market is divided into voice termination, interconnect billing, and fraud management, with the voice termination segment holding the largest market share in 2020. Regarding transmission networks, the market is split between owned and leased networks, with the leased network segment dominating in 2020. When it comes to technology, the market is divided into VoIP and traditional switching, with VoIP accounting for a larger share in 2020. Geographically, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM), with Europe holding a significant share of the global market in 2020.

The COVID-19 pandemic had varying impacts across Europe in 2020, with some countries experiencing a surge in confirmed cases, leading to strict lockdowns and social distancing measures. However, nations like Germany, France, Russia, and the UK managed to maintain relatively stable growth due to their robust healthcare systems. To safeguard public health, European governments invested heavily in technology to enhance their healthcare systems and monitor the virus's spread. By 2021, as lockdowns were lifted and vaccination efforts progressed, many offices resumed normal operations.

At the beginning of 2020, economic activities in numerous sectors came to a near halt, causing significant financial strain on businesses. This uncertainty prompted many companies to consider workforce adjustments, potentially jeopardizing millions of jobs through reduced hours, pay cuts, temporary furloughs, or permanent layoffs. According to data from McKinsey & Company in April 2020, the COVID-19 crisis could threaten up to 59 million jobs in Europe, representing a staggering 26% of total employment across the 27 EU member states and the UK. The increased adoption of high-speed internet in homes and businesses has created more opportunities for VoIP services; for instance, Telef?nica S.A. reported a 50% increase in mobile voice traffic in Spain's IP networks.

The overall size of the wholesale voice carrier market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the wholesale voice carrier market across all segments. Additionally, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the wholesale voice carrier sector.

Key players in the global wholesale voice carrier market include AT&T Inc., BICS SA/NA, BT Group, DEUTSCHE TELEKOM AG, IDT Corporation, Tata Communication, TELEF?NICA S.A., Lumen Technologies, VERIZON COMMUNICATIONS, INC., and ORANGE S.A..