The Evolution of Wholesale Telecom: From Voice Revenue Decline to Data-Driven Transformation

The wholesale telecom industry has been a cornerstone of global connectivity for decades. While its origins were deeply rooted in revenue from cross-border voice calls and interconnect agreements, today it finds itself at the crossroads of transformation. The traditional pillars of the industry, namely voice and SMS, are rapidly declining, forced into obsolescence by the meteoric rise of over-the-top (OTT) platforms such as WhatsApp and Zoom. With wholesale voice revenue down by 80% and SMS by a staggering 94% over the past decade, the market is experiencing a seismic shift. Consumer behavior has evolved, with OTT services accounting for over 60% of international calls as of 2025, disrupting the conventional telecom revenue model entirely.

Decline in Voice Revenue: The End of an Era

Once a lucrative revenue stream, voice interconnect revenues have plummeted as user habits have shifted. Voice now contributes less than 10% of operators’ average revenue per user (ARPU), a sharp drop from over 50% a decade ago. This decline has particularly impacted operators who traditionally relied on inbound international traffic. Voice settlements and revenues are in double-digit yearly declines in many markets, reiterating the urgency to pivot toward new income sources. However, while this traditional pillar has crumbled, the industry is far from shrinking. Wholesale telecom providers are finding growth opportunities in data and digital services, marking the dawn of a new era for the sector.

The Rise of Data and Digital Partnerships

As voice revenue diminishes, data has emerged as the new kingpin of the wholesale telecom industry. In fact, data now accounts for over 85% of ARPU, reflecting a tenfold growth since 2013. Operators have successfully expanded into monetizing network capacity for services such as cloud infrastructure, fiber-optic connectivity, and SD-WAN solutions. These avenues not only provide recurring revenue streams but also demand premium pricing, ensuring higher margins than traditional services.

Moreover, innovative technologies like 5G are unlocking newer possibilities in wholesale roaming markets. The real-time analytics and enhanced subscriber experiences that 5G enables are expected to double wholesale roaming revenues between 2024 and 2028. Another promising category is the Internet of Things (IoT), projected to generate $2 billion in roaming revenue by 2028. The wholesale telecom landscape has transformed into a multifaceted business with data and digital services providing a robust growth engine.

Adapting to the Digital Transformation Era

The journey from legacy voice revenues to multi-line business models is laden with challenges. For wholesale providers, this transition requires reevaluating their business approach, including overhauling legacy systems and adopting digital-first strategies. The complexity of modern wholesale operations necessitates advanced platforms capable of handling diverse ecosystems, enabling seamless integration of interconnect agreements, IoT billing, and cloud services. AI-powered solutions are now being leveraged for fraud detection, dynamic pricing, and predictive analytics, making modern telecom operations more efficient and profitable.

Industry pioneers such as Subex are actively driving this change through innovative platforms like Partner Ecosystem Management (PEM). By consolidating multiple revenue streams—including fiber, OTT, and IoT—under one seamless system, telecom operators are becoming not just connectivity providers but critical enablers of digital innovation. Subex’s approach demonstrates how embracing technology can turn wholesale from a cost center into a key growth vertical.

The Future of Wholesale Telecom: A Third-Generation Model

The wholesale telecom sector is undergoing a revolutionary transformation into what industry leaders call the “third generation of wholesale.” This next phase emphasizes ecosystem management, advanced enterprise partnerships, and robust digital services over traditional connectivity or simple capacity leasing. With a market projected to grow from $470 billion in 2024 to $1.74 trillion by 2037, the future of wholesale lies in data-driven opportunities and next-generation services that transcend conventional telecom boundaries.

The wholesale telecom narrative is no longer one of decline due to sinking voice revenues but one of reinvention. Operators that embrace data, invest in digital transformation, and foster innovative partnerships are set to thrive in this new paradigm. With IoT, 5G, and cloud solutions driving unprecedented market growth, the sector holds immense potential for operators willing to adapt and innovate. The shift to being digital-first isn’t just an option—it’s a necessity in today’s rapidly evolving market landscape.