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Wholesale VoIP Feature Article

VoIP Innovations Talks the Terminator and Wholesale VoIP in 2013

December 12, 2012

By Allison Boccamazzo, Director of Brand Strategy

Wholesale VoIP exploded during 2012, and for the first time in what feels like forever, it seems the biggest trend expected for this market in the New Year is more expansion, growth and involvement. That sure says a lot for the space when so many are continuously struggling to cope with the slowly but surely improving economy.

For example, as the wholesale VoIP market continued to branch out, competitive carriers continued to seek different and innovative ways to generate revenue and remain top-choice with best-of-breed technology and solutions. The hot topic on carrier’s minds throughout this year was how to profitably deliver VoIP in the rapidly evolving wholesale market.

In light of this, I was able to speak to industry expert Jason Tapolci, president at VoIP Innovations (News - Alert), about what he has seen throughout 2012, what he expects for 2013 and what the company has planned for the New Year.

Back in October, Tapolci noted that the exponential growth of wholesale VoIP over the last few years has indeed directly affected the company, which was recognized both locally and nationally for its growth. For example, the company No. 12 on the 2012 Pittsburgh Business Times Fastest Growing Companies List. Now, he sits down to explain where the market and his business have gone since then.

The first thing that comes to mind when concerning key market drivers of 2012 is taxes, which Tapolci says was big last year and will continue be big this upcoming year. “The government is really cracking down on the VoIP industry, and they want us – wholesale VoIP providers – to be tax compliant,” he explains. VoIP Innovations didn’t take this notion lightly, having spent six months talking to compliance solution specialists and finally settling on a partnership with Florida-based Compliance Solutions Incorporated (CSI (News - Alert)), who helped the company put together a tax package, among other things.

Over the past 10 years, VoIP has remained the fastest growing industry, even having outpaced search engines, Tapolci notes, which is no small feat. Looking towards the next ten years, many confidently predict VoIP to remain at the front of the race.

“What I’m seeing is things blowing up like a balloon in this industry, and we’re getting ready to see a contraction,” Tapolci explains. In other words, with a hugely growing industry, new players begin to jump in, which makes for demand great, but after a few years once this reaches its peak, companies will begin to either sell or fail, which will give way to strong consolidation. This pattern goes up and down, returning, peaking and then leaving.

It will peak again, Tapolci says, in 2013.

This consolidation will essentially lead to an increase in acquisitions, attritions and shifts to accommodate these changes. Regardless, Tapolci suggests that major players and pioneers of the industry such as VI will remain unwavering, while the weaklings are weeded out.

The last trend seen for 2013 is specialization. This is no new prediction, either, as Tapolci last month mentioned this emerging shift towards specialization in the wholesale VoIP community as well.

“Over this past year and coming year, I see it clear as day that what’s happening is people are starting to specialize in one of those niches,” Tapolci tells me. So companies such as VoIP Innovations, where origination and DIDs is “the butter on their bread,” may stick to solely that. Perhaps another company is playing to their biggest strength of termination, and so on.

In a nutshell, “We’re seeing everybody try to do everything now in the past year and the coming year. People are trying to pick one little niche that they’re good at.”

What also sets the wholesale VoIP market apart is that vendors seem to share a sort of ancestral, intimate friendship, where they’ve worked together for quite some time and buy from who they sell to and vice versa, which is quite unique.

Going off of this, what’s taken the VoIP and wholesale market thus far is its ability to maintain a healthy relationship with one another. Tapolci notes that in order to continue this momentum, the market will need to continue “hooking their wagons together” to get a leg up on traditional telephone companies who are not willing to work together. “I see that as a huge driver in moving this industry forward,” he concludes.

So what does VoIP Innovations have up its sleeves for 2013? The company is very excited about the progress of its newly launched Titanium III Private Label Service, which broadens the scope of understanding wholesale VoIP for new entrepreneurs or those with limited technical knowledge. Additionally, the company is making a big push to double its termination revenue during its first quarter – the project, of course, boasting the theme “The Terminator.”

Arnold would be proud.

To find out more about VoIP Innovations, visit the company at ITEXPO Miami 2013, taking place Jan. 29- Feb 1 in Miami, Florida. Visit VoIP Innovations in booth #507. For more information on ITEXPO (News - Alert) Miami 2013, click here.

Edited by Allison Boccamazzo

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