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Wholesale VoIP termination rates and 2018 telecoms outlook

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|  2 min
In this article

VoIP continues to grow in popularity as businesses everywhere realise the advantages that it brings. So what are the main drivers shaping the future of the wholesale telecom industry?

Traditional voice services declining

Revenues from these services are in decline and decreasing termination rates are impacting negatively on profits. Over-the-top services such as Skype, WhatsApp, and Facebook Messenger are becoming important methods of communication for individuals. Strategies to mitigate losses include cost-cutting, using wholesaler services, increased use of the cloud, and more focus on potential acquisitions and mergers.

Data, the IoT and the IoE

Digital service provision and the popularity of OTT apps are fuelling a global demand for data (amongst consumers and businesses). Companies will need to continue investment in data centres to boost business opportunities and deal with workforce demands.

The Internet of Things (IoT) will continue to grow in importance as more smart devices such as wi-fi connected washing machines, thermostats, and self-parking cars become commonplace.

Following on from the Internet of Things, the Internet of Everything (IoE) will soon emerge, characterised by communication between devices. This technology will add people, processes, and yet more data into the mix. IoE promises faster, more informed and accurate decision-making.

5G

The 5G rollout brings enormous opportunities for telecoms businesses. China is expected to have in excess of half a billion users on 5G by 2023. Europe is lagging behind China in terms of the rollout process but this actually gives more time for Europe’s telecoms businesses to plan how they can embrace the technology to improve their offerings and get ahead of the competition. Many IoT/IoE connected devices will rely heavily on 5G.

SMS

Despite the popularity of OTT, SMS is being revived as a way for businesses to engage with their customers. Some innovative DSPs are even integrating SMS technology into their existing services, thus ensuring instant communication with end-users, anywhere in the world.

Roaming Fees

Data roaming fees are being scrapped in Europe from June 2018 and this could well happen in other locations. This brings threats and opportunities for the telecoms industry.

Fraud

As an increased number of devices are being connected to the IoT, the threat of hacking and data theft will rise. This will increase the market for fraud prevention solutions – and some telecoms companies may diversify to offer these.

Innovation

Those businesses in the wholesale telecoms market must continue to innovate if they wish to survive. Establishing new services/revenue streams and ways of attracting new customers are key elements to this.

Wholesale VoIP termination rates

Wholesale VoIP is perfect for businesses that make high volumes of calls worldwide.

At IDT, we provide competitively-priced wholesale and retail VoIP services. With over 25 years of experience in telecoms, we know what we are talking about. To find out more about what we offer, please take a look at our products page or call our expert team to discuss your needs.

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