In wholesale voice, an international call passes through a chain of companies: the originating provider that serves the caller, one or more wholesale or transit carriers that carry it across borders, and the terminating operator that delivers it to the called number. Each link charges the one before it, and the termination fee set by the destination operator is usually the largest part of the cost.
The links in the chain
| Role | Who | What they do |
|---|---|---|
| Originator | Call centers, CPaaS platforms, VoIP providers, mobile and fixed operators | Own the end customer and the call's starting point |
| Reseller or wholesaler | Smaller carriers and resellers | Buy routes and resell them with their own pricing |
| Transit carrier | International carriers, often called Tier 1 or Tier 2 | Carry large volumes between countries and networks |
| Terminating operator | The mobile or fixed network of the called number | Delivers the call and charges a termination fee |
Not every call uses every link. A large originator may connect directly to the terminating operator; a small one may pass through two or three carriers. The differences between carrier tiers are explained in Tier 1, Tier 2 and Tier 3 carriers.
How the money flows
Money moves in the opposite direction to the call. The originator charges its customer (or its own business absorbs the cost), pays the next carrier, which pays the next, until the terminating operator collects its fee. Each carrier keeps the difference between what it is paid and what it pays downstream.
The termination fee is set by the destination operator and, in some countries, influenced by regulation or international surcharges. It is the floor under every wholesale rate for that destination. Margins in the middle of the chain are thin, which is why carriers compete on volume, quality and reliability more than on markup. See what drives VoIP termination prices.
Why routes differ in quality
Two routes to the same country can behave very differently because they pass through different chains:
- Direct or premium routes reach the terminating operator through few hands, usually keep the CLI and have good answer rates (see premium vs standard routes).
- Long chains add delay, more points of failure, and more chances that the CLI is lost or that answer supervision is wrong.
- Grey routes bypass the official interconnect, for example through SIM boxes. They are cheaper but unstable, often lose the CLI, and are illegal in many countries (see SIM box bypass fraud).
Routing decisions inside the chain
Every carrier in the chain chooses where to send each call. Most use least cost routing: a ranked list of suppliers per destination, chosen by price and filtered by quality. If the first choice fails, the call moves to the next one. This is efficient, but it means the path of your call can change without notice. Read least cost routing for how this works.
Where brokers and marketplaces fit
Finding the right supplier for each destination, testing it, and managing agreements with dozens of carriers takes time. Brokers and route marketplaces sit between buyers and sellers to shorten that work: they know which carriers have which routes and can source them on request.
VoIPMatcher works this way. Buyers tell us what route they need; sellers tell us what they can offer. We source the route from our carriers and manage it, while buyers and sellers never see each other and data is never shared or sold.
What this means for buyers and sellers
- If you buy, ask how many hands a route passes through and what CLI and traffic types it supports. Start with what VoIP termination is if the topic is new.
- If you sell, your value is the quality and stability of your part of the chain, not only the rate.
Read more about our VoIP termination service, request a voice route, or see the sell routes page if you carry traffic yourself.
Frequently asked questions
What is a wholesale voice carrier?
A wholesale voice carrier buys and sells call minutes between other providers rather than serving end users. It takes traffic from originators such as VoIP providers, call centers or other carriers and delivers it to the terminating operator, directly or through further carriers. It earns the difference between what it charges and what it pays downstream.
Who sets international call termination rates?
The terminating operator sets the fee for calls to its network, in some countries within limits set by the regulator or by law, and some countries fix a minimum rate for incoming international calls. Each carrier upstream adds its margin, so the termination fee is the floor under every wholesale rate for that destination.
What is the difference between a carrier and a reseller in VoIP?
A carrier operates its own switching and interconnects with operators or other carriers, and often carries large volumes between countries. A reseller buys routes from carriers and resells them with its own pricing, platform or support, without necessarily having its own interconnects. Each extra hop in the chain adds cost and another point of failure.
Why does a call pass through several carriers?
Few originators have direct interconnects with every operator in the world. Each carrier connects to the destinations where it has agreements and hands other traffic to partners, chosen by price and quality through least cost routing. A call can therefore cross two or three carriers before reaching the terminating operator, and the path can change without notice.
Need a route?
Send the destination, route type and target rate. We reply with what we can deliver.