Perhaps inevitably, as the market penetration of VoIP continues at an exponential rate, competitive pressure is mounting in what is an increasingly complex space.
The selection of the most appropriate voice termination partner is a mission-critical decision for carriers which will affect organisational success in both the short and longer term. Success here can be measured not only in terms of profitability but in client satisfaction and retention rates.
Whilst two of the primary drivers remain the same: namely quality of termination and overall capacity, VoIP service providers and carriers are now faced with the challenge of choosing a pricing model which is most closely aligned with their specific business requirements. Although competition can only be regarded as a force for good in the industry, the need for differentiation has added considerable complexity to the models now offered in the wholesale termination market. This, in turn, adds to the complexity of the decision making process and the associated timescales for a carrier or VoIP service provider.
Wholesale VoIP termination rates: pricing models
There are now a number of differentiated pricing models in play in the context of VoIP termination, not least of which are arbitrage and fixed price. The latter may constitute an appropriate solution for a carrier which is seeking a flat rate with no usage-based variance. The compromise here is that whilst a fixed price model may provide the requisite consistency, its inherent rigidity will not necessarily work well in the face of routine fluctuations in traffic volumes.
As such, carriers and service providers which experience variances in the volume of traffic may find themselves better placed in working with a wholesaler with a model that accommodates a degree of irregularity in call volumes.
Since the current market provides carriers and service providers with access to a wide range of termination providers, more established players such as IDT are in a strong position to negotiate pricing models which are tailored to the specific needs of their organisation, business model and client base. This, in turn, provides for greater flexibility in agreeing financial models suited to their needs of the reseller or service provider’s own client base. Personalisation is, after all, a key element in achieving differentiation in a crowded marketplace.
Simplification
There are now a number of specialists offering automated platforms that are specifically designed to ease the selection of an appropriate termination provider based upon multiple, complex criteria. These enable carriers to use a dedicated portal to trade (both buy and sell) a plethora of routes and termination services based upon the offerings of operators across the world.
This greatly simplifies the identification of providers with relevant pricing structures, together with appropriate capacity and routes. Other value-added elements include reporting, account management and multilingual support, essential in a global marketplace.
Expert providers such as IDT fully leverage the available technologies, in addition to building and maintaining relationships with the very best route and termination providers. Why not contact our team today for further information and advice.
