North America Wholesale Voice Carrier Market

North America Wholesale Voice Carrier Market Size

The North America whole sale voice carrier market size was valued at USD 38.25 billion in 2024 and is anticipated to reach USD 42.58 billion in 2025 from USD 100.41 billion by 2033, growing at a CAGR of 11.32%, During the forecast period from 2025 to 2033.

Wholesale voice carrier provides voice services to other telecommunications operators, businesses, and service providers. The wholesale voice carrier market in North America includes a range of services, including voice termination, interconnect billing, and fraud management that are essential for facilitating voice communication across networks. Wholesale voice carriers play a critical role in the telecommunications ecosystem by enabling operators to connect calls and manage voice traffic efficiently. The growth of the North American market is driven by the increasing demand for voice communication services, particularly in the context of mobile and internet-based communication. As businesses and consumers continue to rely on voice services for communication, the need for reliable and cost-effective wholesale voice solutions has intensified. Additionally, the rise of Voice over Internet Protocol (VoIP) technology is transforming the landscape of voice communication, enabling carriers to offer more flexible and scalable solutions. Overall, the North America wholesale voice carrier market is poised for significant growth, fueled by technological advancements and evolving consumer needs.

MARKET DRIVERS

The increasing demand for cost-effective communication solutions is one of the key factors driving the growth of the North America wholesale voice carrier market. As businesses and consumers seek to reduce their communication expenses, wholesale voice carriers provide an attractive option by offering competitive pricing for voice services. According to a report by the Federal Communications Commission, the average cost of voice services has declined significantly over the past decade, prompting many organizations to explore wholesale options for their communication needs. This trend is particularly evident in the small and medium-sized enterprise (SME) sector, where cost savings can have a substantial impact on overall operational expenses.

Rees of Mobile Communication and the Rapid Adoption of Internet-based Voice Services

The rise of mobile communication and the proliferation of internet-based voice services are further driving the demand for wholesale voice solutions. As mobile operators and internet service providers expand their offerings, they increasingly rely on wholesale carriers to manage voice traffic and ensure seamless connectivity. According to a report by Statista, the number of mobile phone users in the United States is expected to reach 298 million by 2025, highlighting the growing reliance on voice communication. As organizations prioritize cost-effective solutions to meet their communication needs, the North America wholesale voice carrier market is set to benefit from this growing trend.

Advancements in VoIP

The rapid advancement of Voice over Internet Protocol (VoIP) technology is further propelling the expansion of the North America wholesale voice carrier market. VoIP has revolutionized the way voice communication is delivered, enabling carriers to offer more flexible and scalable solutions that meet the evolving needs of businesses and consumers. Furthermore, the integration of advanced features such as call analytics, fraud detection, and enhanced security measures into VoIP services is driving the demand for wholesale voice solutions. As telecom operators seek to differentiate their offerings and provide added value to their customers, the need for innovative VoIP solutions becomes increasingly critical. This trend positions the North America wholesale voice carrier market for significant growth, driven by the demand for advanced communication technologies that enhance operational efficiency and customer satisfaction.

MARKET RESTRAINTS

Intense Competition

The presence of intense competition among service providers in North America is one of the significant restraints to the regional market. The market is characterized by a large number of players, including established carriers and emerging startups, all vying for market share. This competitive landscape can lead to price wars, which may erode profit margins for wholesale voice carriers. According to a report by IBISWorld, the telecommunications industry in the U.S. has seen a decline in average revenue per user (ARPU) due to increased competition and pricing pressures. As a result, many carriers may struggle to maintain profitability while trying to attract and retain customers.

Technological advancements

Additionally, the rapid pace of technological advancements poses a challenge for wholesale voice carriers. As new technologies emerge, such as 5G and enhanced VoIP solutions, carriers must continuously invest in upgrading their infrastructure and services to remain competitive. This can lead to increased operational costs and the need for ongoing research and development. According to a report by Deloitte, telecommunications companies are expected to invest over $1.5 trillion in network infrastructure by 2025 to keep pace with technological advancements. The challenge of maintaining technological relevance in a fast-evolving market landscape can pose a significant restraint on the North America wholesale voice carrier market.

Regulatory Environment

The regulatory environment surrounding telecommunications services is further hindering the growth of the North American wholesale voice carrier market. Wholesale voice carriers must navigate a complex landscape of regulations and compliance requirements, which can vary by state and federal jurisdiction. Compliance with these regulations can impose additional costs and operational challenges for carriers. According to the Federal Communications Commission, regulatory compliance can account for up to 15% of a telecom operator's operational expenses. As a result, navigating the complex regulatory landscape can pose a significant challenge for wholesale voice carriers, potentially impacting their ability to deliver services efficiently and profitably.

MARKET OPPORTUNITIES

Cloud-Based Communication Solutions

The increasing adoption of cloud-based communication solutions is one of the major opportunities for the North America wholesale voice carrier market. As businesses increasingly migrate to cloud platforms for their communication needs, wholesale voice carriers can capitalize on this trend by offering integrated voice services that complement cloud-based applications. According to a report by Gartner, the global cloud communications market is projected to reach $100 billion by 2025, reflecting the growing demand for flexible and scalable communication solutions.

Unified Communications as a Service (UCaaS)

The rise of unified communications as a service (UCaaS) is driving the demand for wholesale voice solutions that can seamlessly integrate with various communication channels. UCaaS platforms enable organizations to streamline their communication processes, combining voice, video, and messaging into a single solution. According to a report by Frost & Sullivan, the demand for UCaaS in North America is anticipated to grow at a significant rate over the forecast period, highlighting the significant potential for wholesale voice carriers to provide value-added services in this space. As businesses increasingly adopt cloud-based communication solutions, the North America wholesale voice carrier market is well-positioned to benefit from this trend.

Growth of International Voice Traffic

The expansion of international voice traffic also offers substantial opportunities for the North America wholesale voice carrier market. As globalization continues to drive cross-border communication, the demand for reliable and cost-effective international voice services is expected to grow. According to the International Telecommunication Union, international voice traffic is projected to increase by 20% over the next five years, driven by the rise of remote work and global business operations. Wholesale voice carriers can capitalize on this trend by offering competitive pricing and high-quality services for international calls.

Advanced Analytics and Reporting Tools

The increasing focus on enhancing customer experience through advanced analytics and reporting tools is driving the demand for wholesale voice solutions that provide actionable insights. According to a report by McKinsey, organizations that leverage data analytics to improve customer experience can achieve revenue growth rates of 4-8% above their market average. As telecom operators seek to differentiate their offerings and provide added value to their customers, the demand for analytics-driven wholesale voice solutions is likely to grow, positioning the North America wholesale voice carrier market for significant expansion.

MARKET CHALLENGES

Competition from Alternative Communication Technologies

One of the major challenges facing the North America wholesale voice carrier market is the increasing competition from alternative communication technologies. As the market evolves, new methods such as Voice over Internet Protocol (VoIP) and cloud-based communication solutions are gaining traction, offering unique advantages over traditional wholesale voice services. These alternatives can provide enhanced flexibility, scalability, and cost-effectiveness, which may attract customers away from conventional voice carriers. The demand for VoIP services in the North American region is growing rapidly, which is indicating a shift in preference towards these advanced technologies. This competitive landscape necessitates that wholesale voice carriers continuously innovate and improve their offerings to maintain market share.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Service Insights

The voice termination service segment led the market by accounting for 51.5% of the North American market share in 2024. The dominance of voice termination service segment in North America can be attributed to the critical role that voice termination plays in facilitating communication between different networks. Voice termination services enable telecom operators to connect calls from one network to another, ensuring seamless communication for end-users. The ability of voice termination services to provide reliable and high-quality connections is particularly appealing for telecom operators seeking to enhance their service offerings. Additionally, the growing emphasis on cost-effective communication solutions is driving the adoption of voice termination services, as they enable operators to optimize their routing and reduce operational costs. As the market continues to evolve, the voice termination service segment is likely to maintain its leading position, supported by ongoing advancements in technology and the increasing demand for effective communication solutions.

The interconnect billing service segment is projected to grow at a CAGR of 12.2% over the forecast period. The rising need for accurate billing solutions that can manage complex interconnections between different telecom operators is fuelling the growth of the interconnect billing service segment in the North American market. As the volume of voice traffic continues to rise, the demand for interconnect billing services that ensure accurate revenue sharing and cost management is becoming increasingly critical. Furthermore, the rise of advanced analytics and reporting tools is driving the adoption of interconnect billing services. These tools enable telecom operators to gain insights into their billing processes, identify discrepancies, and optimize revenue management. As industries increasingly adopt automation and smart technologies, the demand for interconnect billing services is likely to grow, positioning this segment for significant expansion in the North America wholesale voice carrier market.

By Technology Insights

The Voice over Internet Protocol (VoIP) technology segment held the largest share of 65.6% of the regional market share in 2024. The dominance of VoIP segment in the North American region can be attributed to the widespread adoption of VoIP technology among telecom operators seeking to provide cost-effective and flexible voice services. VoIP technology enables the transmission of voice communication over the internet, significantly reducing costs associated with traditional circuit-switched networks. The ability of VoIP technology to provide high-quality voice services with advanced features, such as call forwarding and voicemail-to-email, is particularly appealing for telecom operators looking to enhance their service offerings. Additionally, the growing emphasis on digital transformation and the integration of cloud-based solutions are driving the adoption of VoIP technology, as it allows for seamless scalability and flexibility. As the market continues to evolve, the VoIP technology segment is likely to maintain its leading position, supported by ongoing advancements in technology and the increasing demand for effective voice communication solutions.

The traditional switching technology segment is anticipated to witness the fastest CAGR of 10.4% over the forecast period owing to the ongoing need for reliable voice services in regions where VoIP adoption is still limited. Traditional switching technology provides a stable and proven method for delivering voice communication, making it a preferred choice for certain applications. Furthermore, the rise of hybrid systems that combine both VoIP and traditional switching technologies is driving the adoption of traditional switching solutions. These hybrid systems allow telecom operators to leverage existing infrastructure while gradually transitioning to VoIP technologies, providing a flexible and cost-effective approach to voice communication. As industries increasingly adopt automation and smart technologies, the demand for traditional switching technology is likely to grow, positioning this segment for significant expansion in the North America wholesale voice carrier market.

COUNTRY ANALYSIS

The United States held a dominant position in the North America wholesale voice carrier market in 2024 by holding 81.4% of the regional market share. The robust demand for wholesale voice services across various sectors, including telecommunications, media, and technology is primarily driving the domination of the U.S. in the North American market. According to the Federal Communications Commission, the telecommunications industry in the U.S. generated approximately $1.5 trillion in revenue in 2020, underscoring the significant investment in voice services. The rapid adoption of VoIP technology and the push for enhanced communication solutions are also contributing to the growth of the wholesale voice carrier market in the U.S., as businesses seek effective solutions to manage their voice traffic. Moreover, the presence of key players and a well-established telecommunications infrastructure in the United States enhances the market's competitive landscape. Major companies such as AT&T, Verizon, and CenturyLink are actively involved in providing wholesale voice services, driving technological advancements in the industry. As the market continues to evolve, the United States is expected to maintain its leading position, supported by ongoing investments in research and development and the increasing demand for efficient voice communication solutions.

Canada was the second-largest market for wholesale voice carriers in North America and accounted for a prominent share of the North American market in 2024. The growth of the Canadian market is driven by a growing interest in voice services and the increasing adoption of VoIP technologies. According to Statistics Canada, the telecommunications industry in Canada generated approximately CAD 50 billion in revenue in 2020, highlighting the significant investment in voice services. The increasing focus on digital transformation and the expansion of internet infrastructure are also contributing to the demand for wholesale voice services in Canada.

Top Players In The North America Wholesale Voice Carrier Market

In the North America wholesale voice carrier market, several key players have established themselves as leaders, contributing significantly to the overall market dynamics. AT&T is one of the foremost providers, renowned for its extensive network infrastructure and high-quality voice services that cater to various applications, including telecommunications and media. The company's commitment to innovation and extensive service portfolio has positioned it as a market leader, with a strong focus on developing advanced voice solutions that enhance performance and reliability.

Another major player is Verizon, a well-known name in the telecommunications industry. Verizon offers a diverse range of wholesale voice services that are widely used in various applications, including business communication and media. The company's emphasis on research and development has led to the introduction of cutting-edge technologies that meet the evolving needs of customers, further solidifying its position in the North America wholesale voice carrier market.

CenturyLink, now known as Lumen Technologies, is also a prominent player in the wholesale voice carrier market, recognized for its innovative communication solutions and commitment to customer success. Lumen's wholesale voice services are widely used in various industries, including healthcare, finance, and government, making them integral to the transition towards more efficient communication solutions. The company's focus on developing high-performance, reliable voice services has resonated with businesses seeking to enhance their communication capabilities, enhancing its reputation as a trusted provider in the North America wholesale voice carrier market.

Major Strategies Used by Key Players in the North America Wholesale Voice Carrier Market

Key players in the North America wholesale voice carrier market employ a variety of strategies to strengthen their market position and enhance competitiveness. One prominent strategy is the focus on innovation and technological advancement. Companies like AT&T and Verizon invest heavily in research and development to create cutting-edge voice solutions that improve performance, scalability, and user experience. By continuously innovating, these manufacturers can meet evolving consumer demands and comply with stringent regulatory standards, thereby maintaining their competitive edge in the market.

Another significant strategy is the expansion of service portfolios to cater to diverse consumer needs. Manufacturers are increasingly offering a wide range of wholesale voice services, including VoIP, traditional telephony, and hybrid solutions, to appeal to various applications. For instance, CenturyLink has introduced a range of voice services specifically designed for businesses, addressing the growing demand for advanced communication capabilities. By diversifying their service offerings, key players can address varying consumer preferences and capitalize on emerging market opportunities.

Strategic partnerships and collaborations also play a crucial role in enhancing market presence. Companies often collaborate with technology providers and system integrators to expand their reach and improve distribution channels. For example, partnerships with cloud service providers enable wholesale voice carriers to integrate their services into a wider array of applications, thereby increasing sales and market penetration. By leveraging strategic alliances, key players can enhance their competitive positioning and drive growth in the North America wholesale voice carrier market.

Competition in the North America Wholesale Voice Carrier Market

The competition in the North America wholesale voice carrier market is characterized by a mix of established players and emerging manufacturers, all vying for market share in a rapidly evolving landscape. Major companies such as AT&T, Verizon, and CenturyLink dominate the market, leveraging their strong brand recognition, extensive distribution networks, and commitment to innovation. These industry leaders continuously invest in research and development to enhance voice service performance, scalability, and compliance with stringent regulatory standards, thereby maintaining their competitive advantage.

Emerging players are also entering the market, often focusing on niche segments or innovative technologies, such as cloud-based voice solutions and AI-driven analytics. This influx of new entrants intensifies competition, as they seek to capture market share by offering unique value propositions and addressing the growing demand for efficient communication solutions. Additionally, the increasing consumer preference for integrated communication systems is prompting established manufacturers to adapt their offerings and invest in cleaner technologies, further heightening competition.

Price competition is another significant factor influencing the market dynamics. As manufacturers strive to attract price-sensitive consumers, they may engage in competitive pricing strategies, which can impact profit margins. However, companies that prioritize quality, performance, and customer service are likely to differentiate themselves and build brand loyalty, allowing them to navigate the competitive landscape effectively. Overall, the North America wholesale voice carrier market is poised for continued growth, driven by innovation, evolving consumer preferences, and a dynamic competitive environment.

KEY MARKET PLAYERS

Verizon, AT&T, BT, Deutsche Telekom AG, Tata Communications, are the market players that are dominating the North America wholesale voice carrier market.

RECENT HAPPENINGS IN THIS MARKET

• In March 2023, AT&T launched a new suite of wholesale voice services designed for small and medium-sized enterprises, reinforcing its commitment to innovation and market leadership.
• In January 2023, Verizon introduced a new series of VoIP solutions aimed at enhancing communication for businesses, catering to the growing demand for flexible services.
• In February 2023, CenturyLink expanded its service portfolio by launching a new range of hybrid voice solutions specifically designed for the healthcare sector, addressing the increasing demand for advanced communication capabilities.
• In April 2023, T-Mobile partnered with a leading technology provider to integrate its wholesale voice services into a new line of smart home devices, enhancing its market presence.
• In May 2023, Lumen Technologies acquired a small voice technology firm to strengthen its capabilities in the wholesale voice market and expand its service offerings.
• In June 2023, Comcast announced a strategic collaboration with a major telecommunications company to develop integrated voice solutions for business applications.
• In July 2023, Frontier Communications launched a new series of voice services designed for the education sector, reflecting its commitment to innovation and addressing the growing demand for effective communication solutions.
• In August 2023, Windstream introduced a new line of affordable wholesale voice services aimed at small businesses, targeting the increasing demand for cost-effective communication options.
• In September 2023, Cox Communications expanded its distribution network by partnering with major retailers to increase the availability of its wholesale voice services across North America.
• In October 2023, 8x8 unveiled a new series of cloud-based voice solutions designed for the retail sector, aiming to capture a larger share of the market.

MARKET SEGMENTATION

This research report on the North America wholesale voice carrier market is segmented and sub-segmented into the following categories.

By Service

• Voice Termination Service
• Interconnect Billing Service

By Technology

• Voice Over Internet Protocol (Voip) Technology
• Traditional Switching Technology

By Country

• U.S
• Canada
• Mexico
• Rest of North America