The biggest issue facing MNOs today is how to replace lost revenue. The past several years have seen accelerated loss of market share to OTTs – Skype, WhatsApp, WeChat – for voice and traditional Person to Person (P2P) SMS traffic. This year’s pandemic has made the situation worse, as the sharp drop in business travel and tourism has slashed roaming revenue.
The one bright spot? The Application to Person (A2P) SMS market is seeing real growth as enterprises and other professional organizations connect with end users for informational, promotional, or simply conversational messaging from customers. It is forecasted that total MNO revenue from A2P messaging will grow to $90 billion by 2025. However, the same studies that outline this growth opportunity show that most MNOs have no control of their A2P SMS traffic.
Why not? In a word, bypass.
MNOs only see part of their A2P traffic. A significant portion reaches their subscribers without proper accounting and billing. This bypass creates opportunities for grey route operators and other unauthorized senders to arbitrage rate differences. The result is enormous revenue leakage. If the MNO cannot see the traffic, it cannot monetize it.
At Vox Technologies, the technology arm of Vox Carrier, we have developed a two – part strategy to help our MNO partners fully monetize their traffic.
The first part is making sure the MNO network is secure by putting in place end – to – end protection on all entry channels, domestic and international. With this control the MNO eliminates the possibility to leverage any channel and arbitrage rates and sees an immediate increase in revenue as all traffic is seen, accounted for and monetized.
The second part builds on this complete network control as we work with the MNO to define the optimum pricing strategy for A2P traffic. Once the MNO has a clear picture of all incoming traffic, it is then possible to differentiate revenue streams and set an appropriate price for each. By clearly identifying and controlling the types of A2P SMS (domestic or international) and sources of the A2P streams: social media companies, domestic operators, large enterprises, the MNO can leave behind the “one price fits all” model and begin to implement price increases to charge each at the market price for their industry.
This complete knowledge of and control over all A2P channels allows for price discrimination, a powerful tool for revenue growth. MNOs find also they can work with any particular enterprise customer on product development and marketing to increase the volumes and create new top – line opportunities.
Vox Technologies goes beyond the technical solution to bypass and helps our MNO partners navigate this strategic process. Let’s talk about how we can help you stop bypass, eliminate revenue leakage, and actually develop new business.