A2P SMS: The Hidden Gem!

There are many ways that operators can fully benefit from A2P revenue without suffering any losses, but many are still unaware of the effectiveness of these tools. Firewalls and SMS Gateways are the right solution for A2P leakages, helping benefit operators from every SMS hitting their network.

SMS has come a long way since Neil Papwell sent the world’s first SMS, “Merry Christmas” in 1992! SMS remains a highly trusted and popular channel despite the rise of new over-the-top (OTT) messaging services like WhatsApp, Snapchat, Viber and many others.

There is something about receiving an SMS that demands a user’s attention. It’s unlikely that you’ll have over a hundred unread texts, but, it’s almost certain that you have at least one WhatsApp group with dozens of unread messages! In fact you receive fewer messages and your are more sollicited to read them than whatsapp messages!

SMS is evolving as operators manage the growing popularity of OTT messaging services. For organizations such as financial services or ticketing providers, SMS is the most secure and reliable option for A2P communications. Furthermore, it is universal – almost all handsets can receive SMS.

However, the growth in A2P SMS revenues comes at the same time as P2P (person-to-person) SMS revenues are in decline. Mobile operators are losing out as their customers switch to OTT messaging platforms which have the allure of ‘free’.

MNO’s have reacted by aggressively bundling messaging into cheaper deals for users, squeezing their messaging ARPU and, subsequently, total revenues by completely omitting to benefit from the new A2P market!
In fact, new and numerous research currently estimate that A2P messaging will take over the P2P messaging by the end of the 2016 reaching over 2.19 trillion A2P messages by 2018.

The uses of A2P messages vary from:

  • One-time passwords and two factor authentication
  • Transaction notifications & booking confirmations
  • Appointment/Travel reminders
  • Banking Updates
  • Critical and time sensitive alerts
  • SMS API integration

The fears of the decline in SMS use are largely due to the drop in traditional P2P Messaging usage, but the rise of P2A/A2P traffic and revenues continue to give new life to SMS and allow individuals to easily interact with brands, companies and service providers via text messaging while providing a quick and trusted route for communication.

However, with this new market of A2P conquering the SMS traffic, most operators worldwide are still in the loop about the real revenues they could be making. Their networks are open to leakages and breaches from different illegal sources without them being aware of the situation.

The time for change is now and SMS is still a main source of revenue for Operators!