How Wholesale Telecom is Thriving Amid Voice Revenue Decline
According to Subex, wholesale telecom—a historically pivotal segment in connecting global networks—is undergoing a massive transformation. While traditional voice revenue has plunged due to the rise of OTT platforms, data-driven services and next-gen partnerships are enabling unprecedented growth opportunities.
The Evolution of Wholesale Telecom
Subex reports that traditional wholesale telecom revenue streams, primarily driven by interconnect voice and SMS, have faced dramatic declines. Over the past decade, voice revenue for operators has fallen by approximately 80%, while SMS revenue has plummeted by 94%. Platforms like WhatsApp and Zoom, which allow cross-border communication often for free, now account for over 60% of international person-to-person calls as of 2025. This has left wholesale voice margins in double-digit annual decline.
Despite this setback, wholesale telecom is pivoting to data-driven services and ecosystem management to reclaim relevance and profitability. The global wholesale market, which was valued at $470 billion in 2024, is forecasted to grow at a compound annual growth rate (CAGR) of 10.6% to reach $1.74 trillion by 2037. What once relied on voice interconnect is now driven by enterprise connectivity, cloud integration, IoT, and fiber-optic partnerships.
Market Implications of the Wholesale Shift
The decline of voice communication represents a tectonic shift in the telecom industry. For operators traditionally dependent on inbound interconnect traffic margins, this has been a period of significant adaptation. Voice revenue today contributes to less than 10% of Average Revenue Per User (ARPU), compared to over 50% a decade ago. However, data usage, which now accounts for over 85% of ARPU, is transforming wholesale into a major driver of telecom growth.
Key drivers of the modern wholesale market include:
- 5G Roaming: Enabled by real-time analytics and faster connectivity, wholesale roaming revenues are expected to double between 2024 and 2028.
- IoT Revolution: IoT roaming revenues are forecasted to reach $2 billion by 2028, introducing new revenue streams previously untapped in traditional models.
- Enterprise Connectivity: From SD-WAN to high-value cloud services, operators are unlocking premium pricing and recurring revenues.
Industry leaders like Subex are facilitating this evolution by offering AI-led digital transformation technologies, including comprehensive billing, fraud management, and partner ecosystem solutions.
What’s Next for Wholesale Telecom?
As wholesale evolves into the “third generation”—one focused on ecosystem management rather than basic connectivity—operators must modernize their systems to remain competitive. Subex’s Partner Ecosystem Management (PEM) platform, for example, is driving this digital evolution, enabling telcos to manage complex multi-line business (LoB) operations. The results are promising, with operators moving wholesale divisions from cost centers to integral growth engines.
Several challenges persist, however:
- Legacy systems remain reliant on outdated voice-centric billing operations.
- Cultural resistance and a lack of digital expertise hinder rapid transformation.
- Operators must ensure interoperability across cloud, OTT, fiber, and IoT services to create a seamless partner environment.
Despite these barriers, the growth of data and the rise of next-gen technologies like AI, IoT, and 5G are steering wholesale telecom into uncharted but promising territory.
Conclusion: Embracing Wholesale’s Future
Wholesale telecom is breaking away from its declining legacy roots to become a driver of digital innovation. While voice interconnect revenue is set to shrink further, the rise of data services, ecosystem partnerships, and IoT offers substantial growth prospects. Evolution toward modern systems like those offered by Subex illustrates how proactive operators can lead this shift.
How do you think global operators should navigate this transformation? Let us know your thoughts in the comments below.
