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The International VoiP Wholesale Provider: Adding Value

|  2 min
In this article

International VoIP Wholesale services have become an important part of the international communications sector, offering improved quality, reduced costs and the opportunity for smaller operators to gain competitive advantage. Resellers can link up with a service provider and sell-on their services, including voice, ISP and data, using their own corporate branding.

International VoiP wholesale provider: revenue benefits

Wholesale VoIP suppliers can now offer low cost, high quality solutions to carriers, giving them attractive savings without sacrificing reliability or the effectiveness of their service. This is a rare example of a true win-win situation wherein everyone stands to benefit, including the wholesale service provider, the intermediate purchaser and the consumer. The reason that this is now possible is that providers are able to reduce their risks and increase both their volumes and their buying power by selling bulk quantities of bandwidth to other providers. The revenue gained from these sales can also be fed back into developing and improving infrastructure.

Infrastructure benefits

As growth is achieved as a function of purchasing the wholesale voice and data product, a provider can indirectly increase its area of operation by expanding into markets that would previously have been unfeasible in the short term. They avoid making huge investments in Tier 1 infrastructure development and the complex compliance issues that come with being a direct Electronic Comms Network Service Provider. This is clearly a substantial advantage in terms of both cost and time.

A good example of this is the many small Wireless Internet Service Providers or WISP’s who were not able to take full advantage of the many benefits that came with the deregulation of the telecoms sector because of the burden of becoming and remaining fully compliant. Today’s WISP can now piggyback off existing infrastructure by buying large quantities of bandwidth from an up-stream Tier 1 provider and avoid the cost, resource, time and effort that this would involve. What was once a insurmountable barrier to entry and beyond the scope of a small company is no longer an issue thanks to wholesale VoIP.

Increased competition

Another benefit of wholesale VoIP is that healthy competition is promoted; smaller operators can thrive without being strangled by their larger counterparts. This is clearly a good thing for both business and private consumers as VoIP service providers generally package their wholesale offerings with a wide variety of features and ultimately give the consumer fairly-priced voice and data services while still dealing with their supplier of choice.

In conclusion, wholesale VoIP is mutually beneficial for every link in the chain from Tier 1 provider, all the way to the end user. The consumer does not have to bear higher prices to cover a Tier 1 provider’s outlay for infrastructure; the Tier 1 provider is able to increase its footprint and have ‘guaranteed’ sales; and the WISp’s benefit from reduced cost and complexity. Finally, as the Tier 1 provider grows, more and more end users also benefit from these savings.

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