Developing the right strategy for your interconnect voice business

So, you’ve recently reviewed your interconnect voice business and discovered that it is inconsistently contributing margin to the overall business. Sure, if you are a pure play retailer, margin contribution comes in the form of lowering your termination costs and reducing the overhead supporting it. But even those companies are unsure of what success looks like. What’s the right ACPM for your traffic? What’s the right number of staff managing this aspect of your business?

These are the types of questions every carrier should be asking themselves. At GCS, we support a diverse range of customers from retailers to pure play arbitrager players. From International wholesale focus to U.S. Domestic focus. From small to large.

We have customers whose entire business is based on their interconnect voice operations, we have others where it’s ancillary or deemed a necessity, but not imperative, to their go-forward strategy. Our customers generate 20%+ margins down to 2%. Our ICP platform manages approximately 100 Billion minutes of voice traffic a year. That’s over 250M per day!

What we have found is that the carriers who succeed are the carriers that have developed the right strategy for their business. The ones that took the time to consider, analyze, and plan what they want to do with their interconnect voice business, operations, and margins. Ignoring it is detrimental to a carrier’s business. Yes, voice isn’t exciting, and its margins can lack impact, but voice is still an opportunity for carriers to generate sustainable, predictable revenues, and in some cases, decent, if not significant margin contribution.  

100 Billion minutes of traffic. And that’s probably 5% of the worlds voice traffic.  

What are you doing? What’s your strategy? If you need help figuring it out, give us a shout.


Andrea RonaComment