Clearing & Settlement for Messaging Positions Mobile Network Operators to Monetize A2P Traffic Into New Forms of Revenue

According to a 2020 GSMA report, 600 million unique mobile subscribers are expected to join the messaging ecosystem by 2025, favorably positioning operators to monetize the relationships that enterprise and messaging aggregator partners have with mobile subscribers, as well as the A2P messages they terminate across the operators’ networks.

While roaming has seen a significant decline this past year due to the COVID-19 pandemic, messaging, on the other hand, enjoyed considerable uplift since 2020 and continues to experience rapid revenue growth, indicating that the time to act is now.

As the world’s largest mobile clearing and settlement provider, Syniverse’s Clearing and Settlement for Messaging offers its operator customers the ability to clear and settle the massive volumes of mobile transactions they deliver, while also controlling costs, improving operational efficiencies, and optimizing cashflow.

That’s exactly what we did, in fact, in the case of two recent customers—including one that accelerated its cash collection time by 30% that equated to $3M USD in savings, and another that identified $6M USD in incremental revenue—who employed Syniverse’s end-to-end solution.

Here’s how:

Apply Flexible Rates & Pricing for Different Messaging Options
Not all messages carry the same significance, and therefore, operators should charge their enterprise partners accordingly by applying different rates to the various types of messages they terminate across an operator’s network. To put this in perspective, a general message offering a customer a coupon at retail should not cost the same as a specific message from a financial services company providing a one-time passcode for bank access.

As the only vendor in the space that offers a clearing and settlement for messaging solution with the ability to apply flexible rates to various types of messages, we encourage operators to earn their top dollar from clearing and settlement for A2P messaging by moving away from one standard price per message—not just in the short term, but moving ahead toward the future as well, as RCS continues to emerge as the next evolution of standard text messaging.

With the increased functionality that RCS brings, such as group chats, video calls, interactive experiences and more, operators have Syniverse’s Clearing and Settlement for Messaging at their disposal to apply more comprehensive pricing tiers to more sophisticated types of messages, ensuring they’re poised to monetize more advantageously.

Bill Partners More Efficiently to Control Costs & Accelerate Time to Cash
Once messages are delivered, operators need to get their funds quickly by employing trusted experts to reconcile each transaction, provide flexible invoicing options and help collect funds on time, every time—thus improving operational efficiencies in the process.

Our data feed and centralized financial clearing platform seamlessly handles data and financial exchanges, while managing bank transactions by using automated processes that make this otherwise labor-intensive process frictionless for each operator. More efficiencies for invoicing translate to faster collections, but this also enables operators to free up internal headcount by re-allocating those resources to add value to their existing infrastructure in other ways.

Manage Collections to Optimize Cashflow
Since our solution makes this entire process collection-based, operators have more transparency into how their own money works for them, while also retaining greater control over how to best utilize these newfound funds. They can, for example, gain a cash flow efficiency from utilizing any receivables they get from messaging to offset payables and previous obligations for wholesale roaming. And remember, if you’re not collecting, you’re not monetizing.

A Small Glimpse Into the Bigger Picture
So, what does this mean for operators’ bottom lines?

With Mobilesquared’s most recent valuation of A2P SMS message market set at approximately $15.5 billion USD, coupled with the rapid growth of RCS that industry research suggests will capture 2.8 billion users by 2022, the opportunity is two-fold: act now to begin monetizing this messaging activity for short-term gains, and get ahead of OTTs for the sake of earning your fair share of the market, while also future-proofing your messaging business’s profitability as RCS continues to supplant declining SMS revenues.

From enjoying new revenue streams from A2P-based traffic, enhanced new classes of service, flexible messaging ratings and dynamic pricing tiers, to mitigating the risk of becoming part of a larger industry-wide statistic that sees operators lose more than $8 billion USD each year from non-monetized messaging traffic, operators can win simply by partnering with Syniverse to overcome common challenges, including the cascade billing of passthrough fees, restricted rating functionality, resource constraints and more.

Through our cost-effective, cloud-based system and easy-to-use transparency tools, Syniverse continues its commitment to furthering your messaging business with clearing and settlement capabilities deployed as one holistic solution.

Contact us or leave a comment below to discuss how we can streamline your messaging business today to maximize your profits—all with the end goal to elevate your position in the value chain.

Director Global Services

Krista serves as Director responsible for Global Services. Krista has worked at Syniverse for over 10 years in a variety of roles including Emerging Products, Senior Product Manager, and Senior Client Relationship Manager for Financial Clearing. Through these roles, she has developed excellent customer and product support skills.



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