Key Facts

The telecom wholesale voice industry, a critical backbone of global communications, faced significant challenges that hindered efficiency and profitability.

Settlement times for transactions between carriers could stretch to 90-120 days, tying up substantial capital for months at a time. This delay affected cash flow and exposed companies to currency fluctuations and forex slippage, particularly in emerging markets where USD shortages were common.

Transaction fees posed another major hurdle, with costs reaching 4-5% per settlement. These fees represented a substantial burden for an industry operating on thin margins—sometimes as low as 2% for voice carriers. The impact was particularly severe given the high volume of transactions processed annually, with even small percentage fees translating to significant revenue loss over time.

Transparency issues plagued the industry, with invoice clarity often compromised by manual processes prone to human error. This opacity extended to pricing and settlements, leading to frequent disputes and further payment delays. The lack of real-time data analytics compounded these problems, preventing carriers from making informed, data-driven decisions to optimize their operations.

Security concerns added another layer of complexity to an already challenging landscape. The industry faced constant threats from fraudulent activities and cyber-attacks, resulting in significant financial losses. These vulnerabilities, combined with the inefficiencies in settlement processes and high transaction costs, created an environment ripe for disruption by innovative technologies that could address these longstanding issues.

Telecom carrier businesses play an essential role in providing telecommunications services and behind-the-scenes network connectivity to the telecommunications industry as a whole. With increasing demand for seamless connectivity across different networks and locations, the contributions of telecom carrier networks are more important than ever.