With the increasing popularity of the OTT services, the international voice carrier business is experiencing increasing competition and shrinking margins. Wholesale carriers are finding it increasingly difficult to do business and sustain in this environment. Here, partnering with the right operators is the key. However, the partner ecosystem is too diverse. In this scenario, an efficient ecosystem for Trading and Settlement of wholesale interconnect Voice and SMS is the answer.
Automation and convergence are making headlines:
For carriers price-setting with least cost routing, revenue quality, and capacity define business.
A carrier business thrives on two aspects:
b) Traffic volume
In a conventional scenario, small carriers have to take the help of bigger players to gain access to capacity and traffic volume. However, the best case scenario is where all carriers come on a common platform and gain direct access to an operator.
If we look at this through the prism of an operator, shrinking margins and increasing bad debts is their Achilles heel.
This happens because:
- Operators cannot reach to the retail traffic coming from enterprise voice and OTTs.
- They have to face operational hassles to aggregate traffic for their ON-NET destination and arbitrage of A to Z destinations.
- Operators have to compete with big MNOS who have dominance on 3rd and 4th operators of the country.
- Investments in marketing and increasing global spreads of interconnect do not promise ROI
It is very important to address these issues and provide a leveled ground for business to all the players. How can this be done? Exactly what kind of business model will provide stability to wholesale operators?
In this scenario, what will create a sustainable business environment for carriers and operators?
- Quick and seamless interconnection process
- Customized routing
- Reduced Financial risk
- Direct access to operators
- Power to bid, buy and sell
- Effective curbing of fraudulent traffic
How does a sustainable business environment look?
The model is a shift from the traditional way of doing business. It is disruptive but promises to bridge the gap between operators and retailers
Fortifying wholesale carrier business with direct access to operators and customized routing.
What the industry needs is a business model that reduces the restrictions on retailers and allows them to engage in business without worrying about getting into bad debts. Wholesale VoIP providers can experience a sustainable business environment and generate stable revenue streams, by being able to:
Outsource partial or full capacity prepaid terms or post-paid terms with insurance
Get access to a platform that markets their capacity and starts aggregating traffic from global carriers.
Get rid of network management & investment hassle – thus doing business becomes easy.
Customised routing as a unique business model
Customised routing is another innovative way of doing business, where carriers can choose their own operator from a set of direct operator network using an intuitive Dashboard - additionally, assign select destinations for chosen operators. LCR can be customized with full control over routing policy.
This is a sustainable environment because it is not solely about fending off competition and overcoming disruptive roadblocks. The business model is a cohesive ecosystem for carriers and operators, to do business and be in complete control of this business. The uncertainties of the conventional business model are eliminated and a sustainable business environment is established.