Mobile operators losing US$5bn a year to grey messaging

Dialogue Group has launched a global A2P (Application-to-Person) SMS initiative to support CSPs to win a share of US $5bn in annual revenues currently being lost to the grey route messaging market.

“The grey route market not only destroys the significant revenues that should rightfully flow to the mobile operators, but the rock bottom pricing it permits leads to disorderly markets, damaging levels of spam, and potential security threats, all of which are sources of poor customer experience and increased churn. Ultimately we’re looking to deliver zero shades of grey – 100% on-net SMS traffic delivery,” explained Perry Offer, the cheif executive of Dialogue Group.

An A2P message delivered via a grey route connection is originated from a source outside of the CSP’s own network, typically using a channel ordinarily reserved for carrying P2P communications. A grey route A2P message can be sent when access to P2P channels is open for third parties to deliver A2P messaging, often without the recipient network even realising this is the case. As the P2P connections can carry no fee, they are extremely profitable for the sending third party when used to deliver A2P. This is because they charge a transaction fee for each message they deliver to their customers against which there is no cost from the recipient operator.

With Dialogue’s SMART approach to managing A2P traffic, this loss of revenue can be eliminated for the recipient network. Dialogue deploys its SMART services to help operators eliminate ‘grey route’ traffic enabling the recipient network to generate and keep the revenues it deserves. Simply put – control equals cash – and significant amounts as the process develops and more and more traffic is monetised.

 “This loss of revenues is unnecessary and needs to stop,” added Offer. “25% of the world’s operators have already realised the enormous benefits they can gain from managing this problem and are working diligently to stop grey routes and monetise their A2P traffic, but 250 of the largest operators in the world have not yet taken action. In most cases this is because they do not realise the extent to which ‘grey route’ messaging passes through their network, and the loss of income and damage to customer satisfaction that it is causing”.


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