A2P messaging ecosystem to experience revenue leakage by 2020

Monday 11 July 2016 10:38 CET | News

Mobile operators could be missing out on a USD 59 billion opportunity due to their risk-averse A2P messaging strategies according to recent study.  

Mobilesquared has released its global A2P Databook which reveals that the A2P messaging market was worth USD 12.88 billion in 2015. This will rise to USD 58.75 billion in 2020 as mobile operators invest in next-generation SMS revenue assurance platform to unlock white-route messages possibilities.

The study has revealed that mobile operators’ risk-averse A2P (Application-to-person) messaging strategy has resulted in a slow adoption of this opportunity. The mobile intelligence firm estimates that only 15% of mobile operators had invested in a next-generation SMS revenue assurance platform by the end of 2015, and forecasts just over 50% of mobile operators will have deployed the platform by 2020.

The Databook has also found the rollout of more next-generation SMS revenue assurance platforms will see grey-route messages drop from 65% of total A2P global traffic in 2015 to 19% by 2020.

White-route A2P is recognised as legitimate messaging that provides payment to a mobile operator for each message delivered on its network, whereas grey route is illegitimate messaging whereby no termination fee is paid to the receiving mobile network. Mobile operators which invest in next-generation SMS revenue assurance platforms are able to convert grey-route messaging into white-route thereby generating revenues for themselves and the wider A2P messaging ecosystem.

Mobilesquared’s study has highlighted the negative effect grey-route traffic is having on the A2P ecosystem. It suggests the total amount of potential cumulative revenue lost to grey-route messaging traffic terminating on mobile networks forecast at USD 82.14 billion over the period 2015-2020.

The Databook titled: “Global A2P messaging forecasts by country, 2015-2020: Mobile operators key to unlocking multi-billion dollar SMS ecosystem”, explores the impact of white and grey-route SMS globally, regionally and in 200 individual countries worldwide. 

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Keywords: Mobilesquared, A2P messaging, mobile operators, SMS
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce