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Wholesale VoIP Feature Article

What is Wholesale VoIP?

April 24, 2012

By Mae Kowalke, TMCnet Contributor

One sign that a technology market is mature or maturing is the establishment of wholesale distributors who make components or aspects of the technology available as a commodity for resale by providers of specialized offerings.

Such is the case in the Voice over IP market where, in the past few years, wholesale VoIP providers have sprung from the woodwork. Wholesale VoIP carriers offer bulk VoIP packages for service providers and resellers, taking care of the back-end considerations.

The emergence of wholesale VoIP providers is indicative of a communications infrastructure shakeup, as VoIP has and continues to revolutionize the telecommunications sector. VoIP helps businesses and consumers curb their spending because routing calls over the internet is inherently less expensive than routing them over traditional phone lines.

This makes VoIP very attractive for service providers. Initially, however, infrastructure and maintenance costs made selling VoIP prohibitive for all but the largest carriers. Thanks to wholesale VoIP providers, however, that’s no longer the case. 

A common strategy for wholesale VoIP providers is to offer various turnkey solutions for resellers and channel partners. These packages, geared toward both consumer and business clients, are designed to essentially be ready for immediate resale, right out of the box.

Wholesale VoIP providers take care of things like negotiating prices for origination and terminations services in different countries. For telecom companies, this introduces a whole new revenue stream. Selling VoIP services is within reach even for small carriers.

The carrier/reseller clients of wholesale VoIP providers can now easily take advantages of various service packages—such as local and long-distance calling, virtual attendants, call center solutions, data backup and toll-free services—to better serve their customers.

Often, wholesale VoIP packages are sold through a monthly recurring revenue business model. Carriers can sell VoIP services to clients on a monthly basis. This is different from channel programs where the partner (carrier) sells licenses and receives up-front commission from each sale. Monthly recurring revenue is usually a more sustainable model for VoIP, especially when it’s being sold to small and medium-sized businesses.

The wholesale VoIP provider handles the infrastructure, as well as continuing management and overhead. Resellers can then set up a recurring revenue stream with very little up-front effort or cost.

Virtutone is an example of a wholesale VoIP provider. The company offers international origination and termination services, as well as SIP trunking. Its focus is quality voice services at competitive rates.

Edited by Juliana Kenny

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