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US Wholesale Telecom Market

ID: MRFR/ICT/18217-HCR
100 Pages
Garvit Vyas
October 2025

US Wholesale Telecom Market Research Report By Solution (Voice Termination, SMS, Messaging Services, VoIP Solutions, Data Roaming Services, International Call Services, SIP Trunking, Mobile Number Portability, Cloud Communication Services, Network Security Solutions, Dark Fiber Services, Internet Exchange Point (IXP) Services, Satellite Communication Services, IoT Connectivity Solutions, Cloud Connectivity Services and Others), by Organization Size(SME’s and Large Enterprises) –Market Forecast Till 2035

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US Wholesale Telecom Market Summary

As per MRFR analysis, the US wholesale telecom market size was estimated at 83.74 USD Billion in 2024. The US wholesale telecom market is projected to grow from 93.75 USD Billion in 2025 to 290.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 11.95% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US wholesale telecom market is experiencing transformative growth driven by technological advancements and evolving consumer demands.

  • The adoption of 5G technology is reshaping the landscape of the US wholesale telecom market, enhancing connectivity and service offerings.
  • Sustainability initiatives are increasingly influencing operational strategies within the largest segment, which is mobile services.
  • Regulatory changes are fostering a dynamic environment, particularly benefiting the fastest-growing segment of cloud services.
  • The increased demand for bandwidth and regulatory support for infrastructure development are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 83.74 (USD Billion)
2035 Market Size 290.0 (USD Billion)

Major Players

AT&T (US), Verizon (US), Deutsche Telekom (DE), Orange (FR), BT Group (GB), NTT Communications (JP), Telstra (AU), Vodafone (GB), China Telecom (CN), China Mobile (CN)

US Wholesale Telecom Market Trends

The wholesale telecom market is currently experiencing a transformative phase characterized by rapid technological advancements and evolving consumer demands. As the landscape shifts, companies are increasingly focusing on enhancing their service offerings to remain competitive. The integration of next-generation technologies, such as 5G and fiber optics, is reshaping the infrastructure and capabilities of service providers. This evolution not only improves connectivity but also enables the delivery of innovative solutions tailored to diverse customer needs. Furthermore, the emphasis on sustainability and energy efficiency is becoming more pronounced, as stakeholders seek to minimize their environmental impact while maintaining operational efficiency. In addition, regulatory changes and market dynamics are influencing the strategies of players within the wholesale telecom market. The ongoing push for greater competition and consumer protection is prompting companies to adapt their business models. This environment fosters collaboration among industry participants, leading to partnerships that enhance service delivery and expand market reach. As the wholesale telecom market continues to evolve, it appears poised for further growth, driven by technological innovation and a commitment to meeting the demands of an increasingly connected world.

Adoption of 5G Technology

The wholesale telecom market is witnessing a significant shift towards the adoption of 5G technology. This advancement promises enhanced data speeds and lower latency, which are crucial for supporting emerging applications such as IoT and smart cities. As service providers invest in upgrading their infrastructure, the competitive landscape is likely to intensify, compelling companies to innovate and differentiate their offerings.

Focus on Sustainability

Sustainability is becoming a central theme within the wholesale telecom market. Companies are increasingly prioritizing energy-efficient solutions and environmentally friendly practices. This trend not only addresses regulatory pressures but also aligns with the growing consumer demand for responsible business practices. As a result, firms are exploring renewable energy sources and optimizing their operations to reduce their carbon footprint.

Regulatory Changes and Market Dynamics

The regulatory environment is evolving, impacting the wholesale telecom market significantly. New policies aimed at promoting competition and consumer protection are reshaping business strategies. Companies are adapting to these changes by forming strategic alliances and enhancing their service portfolios. This dynamic landscape encourages innovation and collaboration, ultimately benefiting end-users.

US Wholesale Telecom Market Drivers

Increased Demand for Bandwidth

The wholesale telecom market experiences heightened demand for bandwidth as businesses and consumers increasingly rely on high-speed internet services. This demand is driven by the proliferation of data-intensive applications, such as video streaming, cloud computing, and IoT devices. According to recent data, the bandwidth consumption in the US has surged by approximately 30% over the past year. As a result, wholesale telecom providers are compelled to enhance their infrastructure to accommodate this growth. The need for robust connectivity solutions is likely to propel investments in fiber optic networks and other advanced technologies. Consequently, the wholesale telecom market is positioned to benefit from this trend, as providers seek to meet the evolving needs of their customers.

Emergence of New Market Players

The wholesale telecom market is witnessing the emergence of new players, including regional carriers and alternative service providers. These entities often offer competitive pricing and innovative services, challenging established operators. The entry of these new competitors fosters a dynamic environment, compelling existing players to enhance their service offerings and pricing strategies. This trend is particularly evident in underserved regions, where new entrants aim to provide better connectivity options. As a result, the wholesale telecom market is likely to experience increased competition, which may lead to improved service quality and lower prices for consumers. The presence of diverse market participants could also stimulate technological advancements as companies strive to differentiate themselves.

Growing Importance of Cloud Services

The wholesale telecom market is increasingly influenced by the growing importance of cloud services. As businesses migrate their operations to the cloud, the demand for reliable and high-capacity connectivity solutions intensifies. This shift is evident in the rising number of data centers and cloud service providers establishing operations in the US. According to industry reports, the cloud services market is projected to grow by over 20% annually, further driving the need for robust telecom infrastructure. Consequently, wholesale telecom providers are likely to invest in enhancing their network capabilities to support this trend. The wholesale telecom market stands to gain from the increasing reliance on cloud-based solutions, as providers seek to offer seamless connectivity to their clients.

Shift Towards Virtualization and Automation

The wholesale telecom market is undergoing a shift towards virtualization and automation, driven by the need for greater efficiency and cost-effectiveness. Telecom operators are increasingly adopting software-defined networking (SDN) and network functions virtualization (NFV) to streamline operations and reduce reliance on physical hardware. This transition allows for more agile service delivery and improved scalability. As a result, wholesale telecom providers are likely to enhance their operational capabilities, enabling them to respond more effectively to market demands. The wholesale telecom market may experience transformative changes as companies embrace these technologies, potentially leading to lower operational costs and improved service offerings.

Regulatory Support for Infrastructure Development

The wholesale telecom market benefits from regulatory support aimed at enhancing infrastructure development. Recent initiatives by government agencies encourage investment in broadband expansion, particularly in rural and underserved areas. This regulatory environment fosters collaboration between public and private sectors, facilitating the deployment of advanced telecommunications infrastructure. As a result, wholesale telecom providers are likely to receive incentives for expanding their networks, which could lead to improved service availability and quality. The wholesale telecom market is poised to capitalize on these developments, as increased infrastructure investment may enhance competition and drive innovation within the sector.

Market Segment Insights

By Solution: Voice Termination (Largest) vs. SMS (Fastest-Growing)

In the US wholesale telecom market, the market share distribution among various solution segments reveals a diverse landscape with Voice Termination holding a significant share as the largest segment. Other noteworthy segments include SMS and VoIP Solutions, which together reflect the ongoing demand for efficient communication channels in the market. A combination of traditional and emerging services shapes the competitive landscape, driving operators to adapt and innovate continuously. The growth trends for these segments highlight SMS as the fastest-growing solution, propelled by the increasing reliance on mobile communication and messaging for personal and business use. Additionally, the expansion of data services and the migration to VoIP represent key factors enhancing the overall growth trajectory of these segments. The integration of advanced technologies and customer-centric solutions further contributes to this positive outlook in the US wholesale telecom market.

Voice Termination (Dominant) vs. SMS (Emerging)

Voice Termination remains a dominant force in the US wholesale telecom market, driven by its established infrastructure and the necessity for reliable communication services. This segment caters primarily to wholesale carriers connecting calls between networks, ensuring quality and efficiency. On the other hand, SMS is emerging as a crucial player due to its increasing adoption in various business communications and marketing strategies. Its ability to facilitate direct engagement with customers and provide timely updates positions SMS as a versatile tool in the telecommunications toolkit. As businesses seek cost-effective and efficient ways to communicate, both segments are likely to experience sustained growth, albeit at varying rates.

By Organization Size: Large Enterprises (Largest) vs. SME’s (Fastest-Growing)

In the US wholesale telecom market, the distribution of market share between large enterprises and SMEs reveals a clear dichotomy. Large enterprises hold the largest share, capitalizing on their extensive resources and established networks. In contrast, SMEs, while smaller in market share, are increasingly carving out a significant presence as they adopt advanced technologies and tailored solutions to meet evolving customer needs. Growth trends indicate that SMEs are the fastest-growing segment within the US wholesale telecom market. Factors driving this growth include a surge in demand for cloud-based services, competitive pricing structures, and an emphasis on enhanced customer service. As SMEs seek flexible and scalable solutions, they are transforming the market landscape, prompting larger players to innovate and adapt their offerings.

Large Enterprises: Dominant vs. SME’s: Emerging

Large enterprises in the US wholesale telecom market are characterized by their significant purchasing power and ability to negotiate favorable terms with service providers. Their established infrastructure and extensive customer bases enable them to leverage economies of scale, resulting in lower operational costs and improved service delivery. Meanwhile, SMEs are emerging as a vital segment due to their agility and willingness to adopt new technologies. They often seek customized solutions that cater to their specific business needs, leading to a dynamic interplay in the market. As SMEs continue to grow, their demand for innovative telecom solutions challenges larger players to rethink their strategies and offerings, fostering a more competitive environment.

By End User Type: Internet Service Providers (Largest) vs. Mobile Network Operators (Fastest-Growing)

In the US wholesale telecom market, the distribution of market share among end user types reveals that Internet Service Providers (ISPs) hold a substantial portion of the market, being the largest segment. Following ISPs, Mobile Network Operators (MNOs) also contribute significantly, with VoIP Service Providers and Cable TV Operators maintaining smaller yet noteworthy shares. Government Agencies, Educational Institutes, and Content Providers together comprise a crucial part of the clientele, while the Others category accounts for the remaining share, illustrating a diverse range of end users engaged in wholesale telecom services. Growth trends in this segment indicate a heightened demand for Mobile Network Operators, which are experiencing rapid expansion due to increasing mobile data consumption and the rise of 5G technology. ISPs remain dominant, yet they face competition from MNOs that are innovating their service offerings. Additionally, the growing emphasis on digital communication has bolstered VoIP Service Providers and highlighted the role of Content Providers, suggesting a shift towards integrated telecom solutions across various industries.

ISPs (Dominant) vs. MNOs (Emerging)

ISPs serve as the cornerstone of connectivity in the US wholesale telecom market, providing essential broadband services to both residential and commercial consumers. Their stronghold on market share is largely due to the widespread availability of high-speed internet access and the expansion into fiber-optic networks. On the other hand, MNOs are becoming increasingly important as an emerging player in this space, propelled by advancements in wireless technology and consumer demand for mobile services. The agility of MNOs in adapting to market changes, particularly in metropolitan areas, positions them as key competitors to traditional ISPs. Both segments are essential for the overall growth of the telecom landscape, with ISPs maintaining dominance while MNOs carve out new opportunities.

Get more detailed insights about US Wholesale Telecom Market

Key Players and Competitive Insights

The wholesale telecom market in the US is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for high-capacity data services. Major players such as AT&T (US), Verizon (US), and Deutsche Telekom (DE) are strategically positioned to leverage their extensive networks and innovative solutions. AT&T (US) focuses on enhancing its fiber infrastructure, while Verizon (US) emphasizes 5G deployment and edge computing capabilities. Deutsche Telekom (DE), through its T-Mobile US subsidiary, is expanding its market presence by investing in next-generation technologies and partnerships, thereby shaping a competitive environment that prioritizes innovation and customer-centric solutions.

Key business tactics within this market include localized service offerings and supply chain optimization, which are essential for meeting diverse customer needs. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for a variety of service offerings, fostering competition that drives innovation and efficiency among providers.

In October 2025, AT&T (US) announced a strategic partnership with a leading cloud service provider to enhance its wholesale offerings. This collaboration aims to integrate advanced cloud solutions into AT&T's existing infrastructure, potentially increasing its appeal to enterprise customers seeking robust connectivity and cloud services. Such a move underscores AT&T's commitment to digital transformation and its focus on providing comprehensive solutions that meet evolving market demands.

In September 2025, Verizon (US) launched a new suite of wholesale 5G services designed to cater to businesses looking to leverage high-speed connectivity for IoT applications. This initiative not only positions Verizon as a leader in the 5G space but also reflects its strategy to capitalize on the growing demand for IoT solutions across various industries. The introduction of these services is likely to enhance Verizon's competitive edge and attract new customers seeking innovative connectivity solutions.

In August 2025, Deutsche Telekom (DE) expanded its partnership with a prominent technology firm to develop AI-driven analytics tools for its wholesale customers. This strategic move aims to provide clients with enhanced data insights, enabling them to optimize their operations and improve service delivery. By integrating AI capabilities, Deutsche Telekom is not only enhancing its service portfolio but also reinforcing its position as a forward-thinking player in the wholesale telecom market.

As of November 2025, current trends in the wholesale telecom market indicate a strong emphasis on digitalization, sustainability, and AI integration. Strategic alliances among key players are increasingly shaping the competitive landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to deliver innovative solutions that meet the complex needs of customers.

Key Companies in the US Wholesale Telecom Market market include

Future Outlook

US Wholesale Telecom Market Future Outlook

The wholesale telecom market is projected to grow at 11.95% CAGR from 2024 to 2035, driven by increased demand for data services and technological advancements.

New opportunities lie in:

  • Expansion of 5G infrastructure partnerships with local governments
  • Development of AI-driven network optimization solutions
  • Launch of bundled services for IoT connectivity and management

By 2035, the market is expected to achieve robust growth, positioning itself as a leader in telecommunications.

Market Segmentation

US Wholesale Telecom Market Solution Outlook

  • Voice Termination
  • SMS
  • Messaging Services
  • VoIP Solutions
  • Data Roaming Services
  • International Call Services
  • SIP Trunking
  • Mobile Number Portability
  • Cloud Communication Services
  • Network Security Solutions
  • Interconnection Services
  • MPLS (Multiprotocol Label Switching) Solutions
  • Bandwidth on Demand
  • Colocation Services
  • Hosted PBX Services
  • Virtual Private Network (VPN) Services
  • Data Center Services
  • Ethernet Services
  • Content Delivery Network (CDN) Services
  • Mobile Virtual Network Enabler (MVNE) Services
  • International Data Services
  • Dark Fiber Services
  • Internet Exchange Point (IXP) Services
  • Satellite Communication Services
  • IoT Connectivity Solutions
  • Cloud Connectivity Services
  • Others

US Wholesale Telecom Market End User Type Outlook

  • Internet Service Providers (ISPs)
  • Mobile Network Operators (MNOs)
  • VoIP Service Providers
  • Cable TV Operators
  • Government Agencies
  • Educational Institutes
  • Content Providers
  • Others

US Wholesale Telecom Market Organization Size Outlook

  • SME’s
  • Large Enterprises

Report Scope

MARKET SIZE 2024 83.74(USD Billion)
MARKET SIZE 2025 93.75(USD Billion)
MARKET SIZE 2035 290.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 11.95% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled AT&T (US), Verizon (US), Deutsche Telekom (DE), Orange (FR), BT Group (GB), NTT Communications (JP), Telstra (AU), Vodafone (GB), China Telecom (CN), China Mobile (CN)
Segments Covered Solution, Organization Size, End User Type
Key Market Opportunities Expansion of 5G infrastructure and services presents new growth avenues in the wholesale telecom market.
Key Market Dynamics Intensifying competition drives innovation and pricing strategies in the evolving wholesale telecom market.
Countries Covered US

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