Wholesale world 2012: Changing business models

16 January 2012


The boundary between wholesale and enterprise business is becoming increasingly blurred. Is there still a business case for the wholesale-only carrier or are they a dying breed, asks Priscilla Awde.

Traditional distinctions between the big global wholesale carriers and their retail service provider (SP) cousins are blurring. Old models, which relied on a clear division between products, customers and roles are breaking down and bi-lateral agreements are being replaced with more flexible and transparent partnerships.

Wholesalers and SPs still compete and cooperate but the dynamic way in which they interact with one another is changing beyond all recognition.

What was a relatively simple, reciprocal and interdependent value chain is becoming more complex as more players sell more to each other. Previously clear demarcations between what wholesalers sold and to whom are becoming foggy as they exploit new infrastructure capabilities to add more retail-type value added services (VAS) to raw capacity and transport.

That search has led them to a variety of opportunities spanning a range of professions and industries but by far the most successful has been the push into...


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Previous comments

  • What you are actually discussing is whether wholesale can de-commoditize? Can wholesale players offer products that are not cost-driven but rather value-driven. In our case (http://www.divinetworks.com) we are able to decouple price from cost of the core wholesale commodity - data bandwidth.

    Yair Shapira Jan 18, 2012

 

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