There’s a four-letter word that has caused mobile network operators to leave billions of dollars on the table: spam. Currently, fear of spam associated with application-to-person, or A2P, messaging has negatively impacted the ability of operators to correctly value messaging and evolve with the changing market. But while the rapid growth of internet of things (IoT) and 5G can create greater complexity, it also presents additional opportunities.
At Mobile World Congress Americas this week, Kyle Spinks, Senior Product Management Director, and I presented on the topic of this revenue leakage for mobile operators. The presentation, held at our Innovation Theater at our booth, examined the current state of messaging monetization and Syniverse’s solution to the hurdles involved with this process.
There is a potential for $50 billion by 2022 in A2P revenue in the Americas, according to Mobilesquared. So why aren’t operators capturing this large amount? As a whole, the process is often viewed as either a risk or a hassle, and with the potential for spam to clutter users’ devices, many operators have selected to forgo the revenue in favor of messaging control. Additionally, many mobile operators believe that the workforce strain involved with the process of sending only verified A2P messages will never be cost-effective.
As Kyle and I described during our presentation, many operators are concerned about the potential spam that could accompany A2P messaging. In this area, one direction that some operators have selected is to employ a one-size-fits-all termination fee system, which presents two major problem areas. First, not all messages are created equal. Two-factor authentication messages have much greater value and importance to consumers than a simple promotional message. But with this current system, both kinds of message are billed the same.
The second challenge is the loss of relationship building. With termination fees, mobile operators do not foster a relationship with enterprise customers. This lack of connection prevents operators from discovering if the services that are being given via A2P messaging are needed and valued.
Despite these potential challenges, Syniverse has a solution – the industry’s first end-to-end messaging monetization solution. The initial step in this process is to filter out spam. Spam devalues a company’s worth in the eyes of the consumer and provides consumers with no added value. After sorting out wanted versus unwanted messages, the remaining content then gets analyzed.
For example, if a company promised consumers it would only send messages regarding their transaction history and not blast consumers with promotions, Syniverse’s solution would confirm that this is properly carried out. Those messages that make it that far in the process are given a reputation score to add an additional level of security against spam. And as a final step, Syniverse works with the mobile operator and the business to provide proper payment for both parties.
Kyle and I wrapped up the presentation with the overall win-win-win: Mobile network operators gain more revenue from reliable businesses that can remain in compliance with regulations while providing end users with requested and desired content. And the best part? Syniverse manages the process and removes the multiple risks that mobile network operators once faced.
This new solution pairs perfectly with our new brand. We’re putting our customers first and reimagining the possibilities. Together, we’re opening the connected world to infinite opportunities. Together, there are two four-letter words we aim to find the answer to: What next?
What’s the next solution we can provide for our customers? Join us we endeavor to find the answers, and stay tuned for more here on Synergy.
Bridget Earl is a former Senior Revenue Marketing Director at Syniverse.