A2P SMS revenue stream needs more attention
MNOs have seen their Person-to-Person SMS revenues declining steadily year-on-year to unprecedented levels. OTT messaging services have devoured the majority of this revenue stream through enticing subscribers to use their messaging platforms.
The growth of A2P
Inversely the advent of OTT applications has enabled the growth of A2P (Application-to-Person) messaging. Multiple studies have consistently and accurately predicted substantial growth stretching to beyond 2025 and contributing billions to the telecommunications market.
Are MNOs monetising A2P SMS?
The potential of this revenue stream has also been targeted by a host of grey-route operations across the globe, bypassing charging and payments to the MNOs and still deliver A2P SMS messages to the subscribers, causing revenue losses to Mobile Operators in the process. The revenues A2P messaging can generate is in the millions and vital for most MNOs as this is a revenue stream that does not require significant investments.
This revenue stream can only be monetised if MNOs can monitor and control the flow of their incoming SMS traffic enabled by a top-graded firewall and be able to channel A2P SMS messages through monetised and legitimate channels.
Beyond SMS: Monetise USSD for A2P
USSD (Unstructured Supplementary Service Data) is a messaging system used by subscribers to check their balance, top-up and access value-added services is now currently being used to terminate A2P communication. To prevent further revenue losses on A2P, Operators need a partner with a solution capable of monitoring, managing and monetising across message formats. For operators to widen their A2P monetisation value chain they need:
- Control USSD for better pricing strategy;
- Live monitoring and filtering of USSD content;
- Fully integrated USSD and SMS within an overall A2P strategy;
At HAUD, we have decades of combined experience, handling the A2P channel for some of the world’s largest MNOs. Our A2P Monetisation Solution is more than just an SMS Firewall, as it rests on a three-stepped perspective:
Audit the MNO’s A2P SMS traffic and establish the propensity of grey-routes, and calculate estimated recoverable revenue;
Installation of our scalable state-of-the-art SMS Firewall, which capabilities allow for immediate identification of suspicious SMS traffic as well as management from a centralised system;
Continuous Managed Services empowering the blocking of illicit or unwanted SMS traffic and sources recovering revenue while ensuring the Operators’ service is maintained.
What differentiates us from the rest?
Proven scalability that can cater for traffic spikes generated on the largest operators globally and unique real-time processing of messages which is also key to control SIM Box fraud.
In-house Managed Services
Our experienced managed services team already control traffic for MNOs across the globe and shared knowledge enables a proactive approach as new threat mitigation measures are shared across clients preventing the occurrence of bypass attempts before they happen.
Our teams’ expertise means that you will always have a reliable partner to assist with managing your A2P channels from implementation, to structuring your A2P channel, to setting up your pricing strategy.
A2P Revenue Numbers
HAUD estimates (based on a study conducted internally) MNOs should be making over 1 million euro per year in A2P revenues per 10 Million subscribers.
Revenue assurance is the name of the game Telcos increasingly need to play. With a proper A2P Monetisation Solution, Mobile Operators can control and protect A2P SMS revenues within days from going live.
A2P Revenue Matters. Protect it!
Findings from our experience
Many MNOs are not aware of how much money they’re losing without taking action.
Case study of MNO in Asia showing achieved benefits with HAUD’s A2P Monetisation Solution within 1 year of operations.
Not an isolated case
Examples of other operators demonstrate how HAUD A2P Monetisation Solution helps to generate new revenues in less than 12 months based on the volume of monetised messages, as shown below.
HAUD’s A2P SMS Monetisation Solution
- Monetise A2P traffic on a single platform
- USSD messaging monetisation inline with product capability
- Eliminate grey routes and curb revenue losses
- Identify and analyse various patterns of fraud
- Filter and eradicate spam
- Optimise traffic
- Re-route unmonetised traffic to monetisable channels
- Improve profits, revenues and cash flows
- Improve customer experience
- Enhance network protection
- Build a better relationship with partners
- Get detailed traffic statistics and monitoring capabilities
- Reduce churn due to poor user experience
The system is proven as it is currently protecting networks around the world, representing 350 million subscribers, filtering an average of 660 million messages every day.