A2P opportunity for mobile network operators, OTTs and enterprises revealed in new Mitto / Juniper white paper
Mitto AG, a global SMS mobile messaging provider, has released a new white paper, “Driving Business Through A2P Messaging.” The paper, authored by Juniper Research, a global provider for industry research and data, provides a comprehensive overview of how Mobile Network Operators, OTTs and Enterprises can use A2P messaging and its associated use cases to drive business and realise increased revenues.
Key findings include:
- Consumer affinity with text messaging now extends to its A2P incarnation suggesting that the market has been seeded for additional use cases.
- A2P messaging provides Mobile Network Operators with an opportunity to plug a growing cost-revenue deficit being caused by declining core revenues from voice, P2P messaging and data and increasing CapEx & OpEx costs.
- While A2P messaging generated traffic worth nearly $36.3 billion in 2016, 31 percent of that traffic was grey route and not monetised, totaling nearly $11.9 billion in lost revenues to Mobile Network Operators.
- OTT players are heavy users of A2P messaging, generating billions of traffic per annum in their use of A2P messaging for 2FA (two-factor authentication) and to re-engage users who have abandoned their messaging application or changed device.
- The greatest financial benefit that A2P messaging can deliver to OTTs that provide content is in the form of an alternative billing mechanism with the value of digital content paid for via carrier billing projected to increase from $16.5 billion in 2016 to nearly $56.2 billion in 2021, an average annual growth of 28 percent.
- Consumers prefer SMS as a means of communicating with companies over other channels including OTT messaging apps, Facebook/Skype and push notifications direct to a company’s app.
The white paper concludes with a series of recommendations from Juniper Research on the steps these three industries should take to increase revenues from A2P messaging.
Those include the requirement to use carrier-grade messaging platforms or work with third party platform providers that can help stem grey route traffic and increase reach to deliver a robust and reliable global SMS connectivity offering.
“While companies know that the A2P opportunity is there, we find that more often than not, they don’t know how to take advantage of it for their own business benefits,” commented Andrea Giacomini, managing director, Mitto. “That’s why we engaged Juniper to write this white paper, to provide simple recommendations that companies can quickly implement to rapidly start realising results from the mechanism.”
The white paper is available for complimentary download here.
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