Today, the international market for wholesale voice operators has already passed the US$ 44.4 billion mark and is on course to reach US$ 50.2 billion by 2025. This growth is driven by increased Internet use and the growing demand for data services, which makes high-quality voice communication increasingly necessary.
According to the Research Nester report, this market is expected to reach US$ 196.5 billion by 2037, representing a growth of 13.2% between 2025 and 2037. With demand for data services on the rise, the need for quality voice communication has also increased. This has further boosted the demand for carrier services such as VoIP, especially in emerging markets.
Wholesale Voice Termination Services are key to connecting voice calls between different networks and regions, and are essential in the telecommunications sector. But what exactly is this service, and how does it work? If you've ever wondered about the mechanisms that make routing international and long-distance voice calls efficient and cost-effective, this guide is for you.
We'll explore the fundamental concepts of this technology, highlighting innovations and solutions that make wholesale voice termination an essential part of modern communications. From the use of advanced protocols to intelligent routing strategies, every aspect of this service aims to optimize global connectivity.
Discover how this solution can transform your company's global communications, offering significant competitive advantages, enabling you to reach new markets and improve operational efficiency.
This service is essential for making international and long-distance calls possible, as it requires the collaboration of multiple operators to ensure seamless, high-quality connectivity.
The way this process works is complex and intriguing, using a network of interconnected providers who negotiate rates and routes to deliver calls efficiently and economically. When a call is initiated, it needs to be routed through several networks until it reaches its destination.
Wholesale VoIP termination facilitates this process by allowing operators to purchase capacity from others to complete calls, ensuring that communication takes place smoothly and without interruption.
It is an indispensable service that not only connects people around the world, but also optimizes the way companies manage their communications, offering cost-effective, high-quality solutions that are key to success in today's global scenario.
Discover the advantages of wholesale voice termination services by checking out our blog: Top 8 reasons why businesses rely on VoIP Termination Services.
Many advanced technologies support wholesale voice termination. These technologies include:
1. Voice over Internet Protocol (VoIP)
It allows voice communication to be transmitted over the Internet, reducing costs and increasing flexibility. Voice over Internet Protocol (VoIP) is a transformative technology that makes it possible to transmit voice communication over the Internet instead of traditional telephone lines. This innovative approach converts voice signals into digital data packets, which are then sent over IP networks, allowing for more flexible and cost-effective communication solutions.
VoIP has revolutionized the telecommunications industry by significantly reducing the cost of voice calls, especially for long-distance and international communications. It offers a range of features, such as call forwarding, voicemail and video conferencing, which improve the user experience and provide greater versatility compared to conventional telephony.
In addition, VoIP supports integration with various applications and digital platforms, making it an essential tool for modern companies and individuals looking for efficient and scalable communication solutions. Its ability to operate over existing internet infrastructure means that users can make and receive calls from anywhere with an internet connection, further increasing its appeal and accessibility.
For further insights into this technology, we invite you to read our blog, Voice-Over-IP (VoIP) - A practical guide.
2. Session Initiation Protocol (SIP)
This is widely used to initiate, maintain and terminate real-time sessions involving video, voice, messaging, and other communication applications and services. Session Initiation Protocol (SIP) is a signaling protocol widely used in telecommunications to initiate, manage and terminate real-time communication sessions. These sessions can involve various forms of media, including voice, video and messaging, making SIP a versatile and essential component in modern communication networks.
SIP operates by establishing a set of rules and procedures that allow devices to communicate with each other over the Internet or other IP networks. It makes it easy to set up calls, negotiate media parameters and manage call features such as transfer, hold, and conference.
By enabling seamless interaction between different devices and platforms, SIP plays a critical role in ensuring that communication services are flexible, scalable, and interoperable across diverse systems and technologies. Its widespread adoption has contributed significantly to the growth of Voice over Internet Protocol (VoIP) services, improving the way individuals and businesses connect globally.
For a comprehensive understanding of SIP technology, we invite you to read our blog: What is SIP?
3. Time Division Multiplexing (TDM)
It is often used for its ability to transmit multiple calls over a single transmission path, optimizing the use of bandwidth. Time Division Multiplexing (TDM) is a method of transmitting multiple signals over a single communication channel by dividing the signal into multiple time intervals.
Each signal is assigned to a specific time interval in a repetitive sequence, allowing several voice calls or data streams to be transmitted simultaneously over the same physical medium without interference. This technique optimizes the use of available bandwidth, ensuring that each call or data flow has dedicated access to the channel for a brief recurring period.
TDM is widely used in traditional telephone systems and other communication networks to efficiently manage and allocate resources, ensuring that multiple users can share the same transmission path while maintaining the integrity and quality of each individual signal. By synchronizing the transmission and reception of these time intervals, TDM enables continuous and reliable communication across multiple platforms and distances.
4. Least Cost Routing (LCR)
This is a strategic process used in telecommunications to determine the most economical path for routing voice calls. This involves analyzing numerous potential routes and selecting the one that offers the lowest cost while maintaining quality standards. LCR systems use sophisticated algorithms to evaluate multiple factors, such as call duration, destination, time, and current traffic conditions on the network.
By continuously monitoring these variables, LCR ensures that each call is routed along the most cost-effective path available at any given time. This not only helps to minimize operating costs for service providers, but also allows them to offer competitive prices to their customers.
In addition, the LCR can dynamically adjust routes in real time, adapting to changes in network conditions or pricing agreements, thus optimizing the efficiency of the routing.
In the telecommunications sector, wholesale voice termination services are available in various formats, each designed to meet specific connectivity and communication needs. These services are essential to ensure that voice calls are routed efficiently and cost-effectively between different networks and regions.
The following are the main types of voice termination services available on the market:
1. Traditional Voice Termination (PSTN): This service uses the Public Switched Telephone Network (PSTN) to transmit voice calls. It is a reliable and widely adopted option, especially in areas where internet infrastructure is limited.
2. Voice over IP (VoIP) termination: With technological advances, voice over IP termination has become a popular choice due to its flexibility and cost-effectiveness. VoIP offers a range of additional features, such as video conferencing and integration with digital platforms, making it a versatile solution for companies looking to modernize their communications.
3. Mobile Voice Termination: This service is specifically designed for calls that originate or terminate on mobile devices. With the increased use of smartphones, mobile voice termination has become crucial to ensure that calls are delivered with quality and without interruption, regardless of the user's location.
4. SMS termination: SMS termination is vital in telecommunications, enabling the delivery of text messages from a sender to an end recipient. Widely used by companies for notifications, alerts and marketing, it is essential for engaging customers effectively. With the increased use of mobile devices, demand for this service has grown, offering reliable and direct communication with high open rates.
5. A2P (Application-to-Person) messages: A2P messages are sent from automated systems to individuals, used by companies for notifications, alerts, authentication, marketing and more. They reach many recipients quickly, with high open and engagement rates, making them an effective tool for business communication. The demand for A2P is growing with the use of mobile devices, offering a direct form of interaction with the public.
Understanding the pricing structure of wholesale voice termination services is essential for companies and telecom operators who want to optimize their communication expenses.
The average cost can vary considerably based on some crucial factors, including the geographical location where the services are offered, the tariffs for fixed or mobile lines, the volume of call traffic managed and the quality of service desired.
For example, in regions with high competition between service providers, tariffs tend to be more competitive, while in less competitive markets, prices can be higher. Below are some important points to consider:
Fixed Tariffs: Some operators offer fixed tariffs, which charge a consistent price per minute or call, regardless of traffic volume. This can vary from $0.01 to $0.05 per minute.
Variable Rates: Other operators use variable rates, which can fluctuate based on traffic volume, network congestion or time of day. These tariffs can be more economical for companies with fluctuating traffic patterns.
Tiered tariffs: Combine elements of fixed and variable tariffs, offering various price levels based on traffic volume or network usage. This can provide a more flexible and adaptable cost structure.
Additional Factors: Network costs, traffic volume and quality of service requirements also influence termination rates.
To get a more accurate estimate, we recommend contacting service providers directly and requesting customized quotes based on your company's specific needs.
The prices of wholesale VoIP termination services are influenced by various factors that can significantly impact the final cost for companies and telecom operators. Understanding these factors is crucial to optimizing expenses and ensuring that the best possible value is obtained. Here are some of the main elements that affect prices:
1. Network costs: These include the costs associated with the infrastructure, maintenance, and operation of the network. Operators need to continually invest in technology and maintenance to guarantee the quality and reliability of the service, and these costs are passed on to customers.
2. Traffic volume and usage patterns: Call volume and traffic patterns, such as peak times, can influence prices. Higher traffic volumes generally result in discounts, while irregular traffic patterns can increase costs due to the need for more complex management.
3. Quality of Service (QoS) requirements: The demand for high-quality of service, such as low latency and high voice clarity, can drive up prices. Providers that guarantee superior QoS tend to charge more for their services, reflecting the investment needed to maintain these standards.
4. Call destinations: Calls to international destinations or remote areas mostly have higher costs due to interconnection fees and routing complexity. The distance and infrastructure required to connect calls to distant locations can increase costs.
5. Interconnection agreements: Agreements between operators for call termination can influence prices. Operators with favorable agreements may offer more competitive rates, while those with fewer interconnection options may have higher costs.
6. Technology used: The technology used, such as VoIP (Voice over Internet Protocol) compared to PSTN (Public Switched Telephone Network), can also have an impact on costs. VoIP generally offers lower prices due to the efficiency of data transmission over the internet, while PSTN can be more expensive due to the traditional infrastructure.
These factors, among others, play a crucial role in determining the prices of wholesale voice termination services. Companies should carefully consider each of these elements when negotiating rates and selecting providers to ensure that their communication needs are met effectively and economically.
Negotiating rates with wholesale VoIP termination service providers is a process that can be complex, but extremely rewarding when handled well. To achieve the best possible rates, it is essential to approach negotiations with a clear strategy and a thorough understanding of market dynamics.
Here are some key steps to consider, ensuring an effective and advantageous negotiation process:
1. Research and Preparation: The first step is to carry out comprehensive research into current market rates and trends. Understanding the pricing structures offered by different suppliers and identifying the factors that influence these rates is crucial. This knowledge allows you to make informed decisions and set realistic expectations during negotiations.
2. Request for Proposals: Contact several suppliers and request detailed proposals. This allows you to compare prices and services offered, as well as create a solid basis for negotiation. Evaluating proposals from different suppliers will help you identify which ones offer the best value and which aspects can be negotiated.
3. Evaluating Pricing Models: Understand the different pricing structures available, such as fixed, variable and tiered rates. Choose the model that best suits your needs and budget. Each model has its advantages and disadvantages, and the right choice can significantly impact costs in the long term.
4. Test the Quality of the Routes: Before closing any deal, ask to be able to test the quality of the routes offered. This will ensure that you are receiving a high-quality service that meets your expectations. The quality of the routes can directly affect customer satisfaction and the efficiency of communications.
5. Negotiating SLAs (Service-Level Agreements): Make sure that SLAs include guarantees for quality of service, uptime and technical support. Negotiate penalties for non-compliance with SLAs, ensuring that the supplier commits to the agreed standards.
6. Taking advantage of SIP Trunk: If possible, use SIP Trunk to reduce costs and increase the flexibility of your fixed voice termination service. This technology can offer a more cost-effective and adaptable solution for your communication needs.
7. Request 24/7 Support: Make sure your provider offers 24/7 technical support to quickly resolve any problems that may arise. Ongoing support is vital for maintaining uninterrupted operation.
8. Traffic volume: Negotiate discounts based on the volume of traffic you plan to route. Providers generally offer lower rates for larger volumes, which can result in significant savings.
9. Regular contract review: Set up regular contract reviews to adjust rates and conditions as necessary, ensuring that you always get the best possible conditions. Periodic review allows you to adapt to changes in the market and your company's needs.
By following these steps and adopting a strategic approach, your company can optimize negotiations with wholesale voice termination providers, ensuring competitive rates and high-quality services that meet your communication requires effectively and economically.
If you are starting out in the Telecom market, it is important to understand the terms and how they relate to wholesale voice termination. Here are some useful definitions and information:
1. Monthly Volume (minutes)
This term refers to the total minutes of calls that a company routes through a wholesale voice termination provider over the course of a month. This volume can directly impact negotiated rates, since higher volumes tend to result in discounts.
2. ASR (Call Answer Rate)
The ASR represents the proportion of calls answered in relation to the total number of call attempts. A high ASR is indicative of a high-quality and efficient network, while a low ASR can signal connectivity or quality problems. Excellent providers generally have an ASR of over 60%.
3. ACD (Average Call Duration)
This indicator refers to the average duration of calls, measured in seconds. A high ACD generally suggests that calls are of good quality and that users are satisfied with the connection. In the context of call center traffic, a typical ACD can vary between 60 and 180 seconds.
In short, understanding these terms and indicators is vital for any company wishing to improve its wholesale voice termination operations. By tracking and analyzing Monthly Volume, ASR and ACD, companies can not only negotiate more advantageous rates, but also ensure that they are providing a high-quality service to their customers.
This in-depth understanding allows companies to stand out in the telecommunications market, maximizing efficiency and, above all, the satisfaction of their cherished customers.
You may be wondering: what are the parameters that define a quality ASR and ACD in the context of wholesale voice termination? These two indicators, ASR (Call Answer Rate) and ACD (Average Call Duration), are essential for assessing the quality and efficiency of voice termination services. Below are the values considered ideal:
1. ASR (Call Answer Rate)
Adequate ASR: An ASR of over 60% is generally considered satisfactory. This strongly suggests that the majority of call attempts result in successful connections, reflecting a high-quality and efficient network.
Excellent ASR: Values above 70% are considered exceptional and indicate an extremely efficient and high-quality network.
2. ACD (Average Call Duration)
Adequate ACD: An ACD between 60 and 180 seconds is considered satisfactory for most types of traffic. This suggests that calls are long enough to indicate significant interactions, without being excessively prolonged to the point of suggesting disconnection problems.
ACD Excellent: Values above 180 seconds can be considered exceptional, especially in the context of call centers, where longer calls generally indicate more detailed and satisfactory interactions.
These values may vary depending on the type of traffic and the specific market, but they serve as a reliable parameter for assessing the quality of wholesale voice termination services.
💡Pro tip: Wholesale voice termination rates are usually established because of information about monthly call volume, traffic and the ASR and ACD parameters. Many companies may initially offer attractive values to secure lower rates, but it's in practice that you'll really find out whether these values hold up.
It's important to make it clear during negotiations and in the contract that the rates will be adjusted according to the volumes and ASR and ACD parameters informed. This way, you avoid surprises and guarantee a smooth and satisfying experience.
Negotiating is an essential skill in the telecommunications industry, especially when dealing with wholesale voice termination services. However, some common mistakes can hinder the process and lead to less favorable terms. Take a look at the main mistakes and how to avoid them:
1. Lack of preparation and research
🔸Not understanding market rates.
🔸Not knowing about competitors' offers.
🔸Ignoring the specific needs of your business.
2. Undefined objectives and priorities
🔸Not clearly understanding what you want to achieve.
🔸Difficulty in directing the conversation to benefit your organization.
3. Excessive focus on price
🔸Neglecting crucial factors such as quality of service, reliability, and support.
🔸Agreements that seem economical initially, but can lead to higher costs or service problems in the long term.
4. Lack of rapport with the supplier
🔸Failure to establish rapport and trust.
🔸Less open communication and less favorable terms.
5. Negligence in reviewing and renegotiating contracts
🔸Outdated agreements that no longer serve the company's best interests.
Being aware of these common mistakes and taking proactive steps to correct them can help your company improve its negotiation strategies and secure more advantageous agreements.
Wholesale voice termination plays a vital role in the modern telecommunications landscape, providing an efficient and cost-effective solution for routing voice calls, both fixed and mobile, between various networks and regions.
This service is key to ensuring that international and long-distance communications take place without interruption, allowing companies and individuals to connect globally with ease. By integrating advanced technologies such as VoIP, SIP and TDM, operators not only maintain high call quality, but also significantly extend their coverage.
Understanding the factors that influence prices and negotiation strategies is essential for any company looking to optimize its communication costs. By selecting the right providers and implementing effective practices, it is possible to ensure that voice termination operations are robust, reliable, and adapted to the specific needs of each business.
This guide has sought to provide a comprehensive overview of the workings and importance of wholesale voice termination, highlighting how it can transform the way your company communicates.
If you still have questions or need additional information, don't hesitate to get in touch. We're here to help you navigate the complex world of telecommunications and find the best solutions for your needs.
Wholesale voice termination is not just a powerful tool, but an opportunity to turn your communications into a competitive differentiator. Take advantage of this opportunity to reduce costs, improve call quality and expand your global reach.
Contact us today and find out how we can help your company move towards more efficient and cost-effective communications.
We connect you to the world! 🌍
Source: International Wholesale Voice Carrier.