Financing wholesale VoIP termination

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With the burgeoning demand for VoIP services, wholesalers, carriers, resellers and financiers alike are re-shaping the value chain.


The capital-intensive australia telegram nature of telecoms has historically attracted major lenders willing to take a longer-term view. However, with many smaller entrants in the VoIP market, in particular in the higher tiers, there is a growing demand for agile finance solutions. Thankfully, with the explosive growth in fintech, a variety of disruptive new market entrants are poised to leverage the VoIP market.

The Wholesale VoIP market
As VoIP penetration continues at the expense of PSTN, competition between carriers is inevitably intensifying. As with any wholly or partially commoditised marketplace, there are always questions as to return on investment and longer-term profitability in the face of fierce competition. Resellers, the primary clients of wholesale VoIP providers, are themselves under enormous pressure from clients and stakeholders alike with a mandate to deliver competitive advantage at all costs.

The key choice in a wholesale context is the age-old infrastructure choice between build, buy or rent. Whilst there are merits to each of these models, the availability of turn-key VoIP services and equipment tends to drive the choice towards the lower end of the investment scale.

Back to differentiation. If the underlying infrastructure is commoditised then this can only occur through service levels and creativity in all client-facing elements, an approach clearly illustrated in IDT’s own offerings to clients.