This publication has been discontinued on July 19, 2011.
Report Synopsis
Based on a survey conducted with carriers in Europe, Asia Pacific and North America, this new report provides a timely strategic assessment of the future of wholesale voice and data, where it is headed, and how value can be built.
The respondents represented approximately 50% of the total international voice traffic on public networks. For data services, half of the top 10 carriers responded to the survey. The identity of the carriers in the survey remains confidential.
Evaluating critical issues in wholesale, the report analyses responses of carriers surveyed to issues concerning buyer and seller relationships, routes and volumes, retail and wholesale, competition, pricing, and revenue and volume expectations.
The report findings suggest that a point of transformation has been reached in wholesale which will be similar in impact to the emergence of "Refile" following US market liberalisation in 1984, and subsequently in Western Europe and other OECD countries.
Identifying fundamental change in the key drivers for wholesale businesses, the report assesses the implications for the original marginal costing business model. In particular, the findings reveal the current relationship between wholesale voice traffic, and retail traffic, and measures how far this has shifted.
Confronted by over supply and a high level of sensitivity in pricing in both voice and data markets, the report suggests that survival of carriers in wholesale will depend on whether their businesses are based on an incremental cost model, and compares the financial profile of a Tier 1 retail and wholesale carrier, and a pure play wholesale carrier, the impact of investment and scenarios for future sustainable models.
The report assesses the critical decisions carriers now confront in taking forward wholesale businesses, including the implications of the findings for current wholesale infrastructure and technology, and the move towards integrated IP, and the impact of the growth rate in mobile international termination, and VoIP international traffic.
Arguing that the business rationale for wholesale as a marginal cost contributor to the retail cost base can no longer be sustained, the report proposes several alternative innovative strategies to build value and opportunities to enhance margins.
Answer six key questions about wholesale today:
What are carrier perceptions of current wholesale voice and data markets? What are the key issues in todays wholesale markets and why do they matter? Why are some wholesale business models more financially sound than others? How will investment impact wholesale development, and where should it be applied? How to meet the profit challenge? What are the forward strategy options that should be considered? All analyses are supported by 30 Tables and Charts Report is 39 pp
Who Should Buy this Report:
All operators, service providers and suppliers engaged in the Wholesale Market
Voice and Data Carriers Aggregators Single Route Operators VoIP Players Regulatory Organisations Law Firms Supplier Companies Consultancies Financial and Investment Services Organisations
Table of Contents - Where next for Wholesale?
F. List of Figures
E. Executive Summary
Voice Value Consolidation Higher Margins Data Value
1. WHOLESALE CARRIERS - SURVEY RESULTS
Voice Routes and Volumes Wholesale Retail Revenue and Volume Expectations Buyer and Seller Relationships Buying Selling Competition Pricing Data
2. FINANCIAL REVIEW
Tier 1 Financial Profile Retail and Wholesale Tier 1 Wholesale Only Tier 1 Impact of Investment Building Value Consolidation Enhancing Margins
3. CONCLUSIONS
