The wholesale telecommunications sector is undergoing a dynamic transformation, reshaping its role in the broader digital ecosystem.
Traditionally focused on offering basic connectivity solutions to customers such as internet service providers (ISPs), mobile virtual network operators (MVNOs), and fixed telephony providers, wholesale carriers are now pivoting towards platform-based solutions and next-generation service models.
This evolution is being driven by the growing demands of hyperscalers, content delivery networks (CDNs), and gaming platforms, coupled with the need for the seamless integration of physical and virtual infrastructure. The shift from manual procedures to automated processes powered by APIs and blockchain technologies further underscores this industry-wide transformation.
A Global and Digital Enabler
Nowadays, wholesale providers are no longer confined to delivering static connectivity; they now play a pivotal role in enabling global digital operations.
They support increasingly virtualized infrastructure, offer managed data center services, co-location spaces, and global internet connectivity. These capabilities are bolstered by cloud integration, network function virtualization (NFV), and software-defined networking (SDN).
The wholesale market is projected to grow significantly, driven by hyperscaler demand, which is expected to increase by ~20% annually through 2026, according to industry reports. Additionally, the global data center market is projected to grow at a compound annual growth rate (CAGR) of 8.37% through 2029, reflecting the sector’s critical role in supporting digital ecosystems.
The flexibility and agility demanded by customers—including on-demand scaling, online service management, and pay-as-you-go models—are driving wholesale providers to adopt platform-centric approaches enhanced by artificial intelligence (AI). Recent surveys indicate that enterprise customers highly value the seamless integration of Communications Platform as a Service (CPaaS) and AI-driven automation, citing improvements in service customization, efficiency, and reliability.
Strategic Evolution for Future Ecosystems
To thrive in this evolving landscape, wholesale divisions within telcos must align their strategies with cloud-focused ecosystems that integrate enterprise and wholesale business units.
Opportunities include shared customer ownership, expanding security capabilities, and standardizing technology frameworks through unified service platforms and centralized APIs. This strategic evolution positions wholesale providers to not only meet but also anticipate the demands of future ecosystems.
The 2024 Telecom Review Leaders’ Summit’s wholesale panel echoed these themes, emphasizing innovation and collaboration. Panelists highlighted the importance of advanced infrastructure, strategic partnerships, and market-focused initiatives to address emerging connectivity needs. From improving internet speeds and hosting capacity to fostering digital ecosystems, the wholesale sector is redefining its role as a key enabler of global digital transformation.
Wholesale Service Expansion Driven by Partnerships
During Telecom Review’s 2024 wholesale webinar, it was highlighted that, as hyperscalers, large enterprises, content providers, and governments increasingly require lower latency, higher bandwidth, optimized costs, scalability, resilience, and redundancy, the sector is rapidly adapting to meet these demands.
du noted a seismic shift in customer and partner relationships, moving towards enhanced Ethernet and IP transit services while Salam emphasized its expansion offerings, including wholesale voice services in Saudi Arabia and an A2P SMS business, as well as new border links with Kuwait and Oman.
Mobily also pointed out the growing importance of software in supporting hyperscalers and content providers, highlighting the role data center internet exchanges and orchestration plays in ensuring industry flexibility. Hence, collaboration between data center providers and tower companies is also enhancing edge data center capabilities.
Technological advancements, such as 5G and AI, are also heavily transforming the industry. AI’s potential in optimizing costs, routing, cooling efficiency, resource allocation, predictive maintenance, and cybersecurity has been observed in the wholesale sector. AI integrated with software-defined networks (SDN) promises self-optimizing, self-provisioning, and self-healing networks, significantly enhancing efficiency and cost-effectiveness.
Sustainability is another critical focal area. By harnessing green energy and building robust, efficient networks, sustainability initiatives can cascade benefits across the wholesale value chain, emphasizing the need for partnerships with technology vendors to optimize infrastructure.
Fostering new interactions and traffic management, the wholesale sector is leveraging CPaaS to engage with OTTs and voice operators.
Collaborative models between wholesale providers, network operators, and content companies enable end-to-end service delivery, redefining the perception of wholesale capabilities.
Regional and Global Approaches
For 2025, GCC-based operators e&, du, and stc forecast an increase in prioritizing digital transformation to enhance customer experiences through comprehensive coverage, automation, and zero-touch requirements.
According to Georges Jaber, VP Wholesale and Business Development, Salam, Saudi Arabia is witnessing a surge in demand from cloud providers, hyperscalers, and gaming platforms, driving investments in high-quality infrastructure to catalyze digital transformation. Employing an ICT-focused approach, Oracle will help Salam increase operational efficiencies, proactively identify and address potential issues, and enable seamless service delivery to its end customers.
Additionally, Ooredoo Oman’s wholesale services continue to focus on capacity, managed services, telepresence, CDNs, data centers, subsea cables, and co-location. Leveraging its international reach, Ooredoo provides innovative solutions to operators and hyperscalers such as Microsoft, Google, and Facebook.
Another example is Zain Omantel International’s agreement with du which guaranteed exceptional 5G-powered voice, messaging, and data roaming services.
Globally, wholesale advancements include Telekom Malaysia’s partnership with Radian Arc to expand cloud gaming and Deutsche Telekom’s unified T Wholesale division, prioritizing AI, 5G Standalone technology, edge cloud computing, and strategic partnerships.
To achieve a successful wholesale business model, tools such as the Nokia WaveSuite Service Enablement (WS-SE) application—which creates the hierarchical tenancy needed to support the value chain for transport service inventory advertisement, service fulfillment, and assurance reporting—can be helpful. Moreover, DC Gateway’s SDN-based portal also offers Network-as-a-Service (NaaS) solutions, enabling automation and secure interconnection for data centers and cloud providers.
Telecom Review Predictions
The wholesale telecommunications industry is evolving beyond basic connectivity to become a cornerstone of global digital transformation. Telecom Review anticipates that, in 2025, wholesale providers will accelerate their efforts in addressing the growing demands of hyperscalers, content providers, and emerging markets by adopting advanced technologies, fostering partnerships, and focusing on sustainability.
As the wholesale sector continues to innovate, its role in enabling seamless, scalable, and efficient connectivity will remain pivotal in shaping the future of digital ecosystems.
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