In its 'Where next in wholesale?' report the BroadGroup telecoms consultancy says that the profit challenge for voice and data suggests that wholesale is overdue for consolidation. Developed from the results of a survey of wholesale voice and data carriers from Europe, the Americas, and Asia Pacific, the report argues that carrier wholesale strategies formed in the mid-90s, and predicated on the carriage of international retail voice and wholesale traffic, now no longer deliver the original benefit of a reduction in retail cost base. It also warns that, as current technology comes to the end of its useful life and needs to be renewed, the business rationale that the wholesale deal is a marginal cost contributor to the retail cost base can no longer be sustained.

The cheering news - if you're Belgacom that is - is that the Belgian company is regarded by the carriers surveyed as the most competitive carrier in wholesale voice, followed by Cable and Wireless. In wholesale data, COLT was identified as the most competitive carrier in Europe, and Cable and Wireless internationally. France Telecom and Level 3 were also included in the most competitive rankings for data.

The report analysed responses of the carriers surveyed to issues such as buyer and seller relationships, routes and volumes, retail and wholesale conditions, competition, pricing, and revenue and volume expectations. Respondents represented approximately 50% of the total international voice traffic on public networks. For data services, half of the top ten carriers were included in the survey.
John Williamson