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New study says mobile operators must overcome risk-averse A2P messaging strategy to drive multi-billion dollar opportunity

– A2P messaging ecosystem will still experience revenue leakage in excess of ?82 billion between 2015-2020 –

UNITED KINGDOM, 6th July 2016: Mobilesquared, a leading provider of mobile intelligence and customer insight, has today released its global A2P Databook which reveals that the A2P messaging market was worth ?12.88 billion in 2015. This will rise to ?58.75 billion in 2020 as mobile operators invest in next-generation SMS revenue assurance platform to unlock the gold-mine of white-route messages.

Report front cover

The Databook titled: Global A2P messaging forecasts by country, 2015-2020: Mobile operators key to unlocking multi-billion dollar SMS ecosystem , explores the impact of white and grey-route SMS globally, regionally and in 200 individual countries worldwide. The study has revealed that mobile operators risk-averse A2P (Application-to-person) messaging strategy has resulted in a slow adoption of the multi-billion dollar opportunity. The mobile intelligence firm estimates that only 15% of mobile operators had invested in a next-generation SMS revenue assurance platform by the end of 2015, and forecasts just over 50% of mobile operators will have deployed the platform by 2020. White-route A2P is recognised as legitimate messaging that provides payment to a mobile operator for each message delivered on its network, whereas grey route is illegitimate messaging whereby no termination fee is paid to the receiving mobile network. Mobile operators which invest in next-generation SMS revenue assurance platforms are able to convert grey-route messaging into white-route thereby generating revenues for themselves and the wider A2P messaging ecosystem.

The Databook has also found the rollout of more next-generation SMS revenue assurance platforms will see grey-route messages drop from 65% of total A2P global traffic in 2015 to 19% by 2020. Mobilesquared s study has highlighted the negative effect grey-route traffic is having on the A2P ecosystem. It suggests the total amount of potential cumulative revenue lost to grey-route messaging traffic terminating on mobile networks forecast at US?82.14 billion over the period 2015-2020.

Mobile operators are key to unlocking the true revenues associated with A2P messaging. White-route traffic means the entire A2P messaging ecosystem can capitalise on the considerably higher cost-per-message of white compared to the illegitimate grey-route traffic. Grey-route traffic is massively hampering the growth of this sector, said Nick Lane, chief insight analyst at Mobilesquared.

Average revenue per subscription is forecast to rise from ?0.15 per month in 2015 to ?0.55 by 2020 with the proportion of revenues from white-route traffic increasing from 74% to 96%, said Gavin Patterson, chief data analyst at Mobilesquared. Nevertheless, converting the remaining grey-route traffic to white would see total revenues of ?70.14 billion in 2020 and average revenue per subscription rise to ?0.66 per month.

We have seen strong operator demand for our SMS Revenue Assurance Platform. We know from our customers that they are benefitting from discovering, profiling & monetising the broad array of A2P traffic hidden within the P2P SMS in their network, not just the counts and costs of traditional messaging management systems said Simeon Coney, chief strategy officer at AdaptiveMobile. We are enabling immediate revenue generation from this existing traffic through the benefit of controls, with payback on investment in less than 3 months. For more information on Global A2P messaging forecasts by country, 2015-2020: Mobile operators key to unlocking multi-billion dollar SMS ecosystem , visit here: http://www.mobilesquared.co.uk/buy-databooks/global-a2p-messaging-forecasts-by-country-2015-2020-mobile-operators-key-to-unlocking-multi-billion-dollar-sms-ecosystem1

-ENDS-

Notes to editorsMobile operator data in the press release is based on 200 markets including 763 mobile operators.

If you would like specific market data or graphs, or to speak to the author of the report, please contact

The Global A2P messaging forecasts by country, 2015-2020 Databook includes individual forecasts for 200 countries, with in-depth projections on:

  • Annual A2P messaging traffic, 2015-2020
  • Annual A2P grey messaging traffic, 2015-2020
  • Annual A2P white messaging traffic, 2015-2020
  • Average A2P traffic per subscription per month, 2015-2020
  • Average A2P grey traffic per subscription per month, 2015-2020
  • Average A2P white traffic per subscription per month, 2015-2020
  • Annual A2P messaging traffic revenues, 2015-2020
  • Annual A2P grey messaging traffic revenues, 2015-2020
  • Annual A2P white messaging traffic revenues, 2015-2020
  • Average A2P revenue per subscription per month, 2015-2020
  • Average A2P grey revenue per subscription per month, 2015-2020
  • Average A2P white revenue per subscription per month, 2015-2020
  • Global mobile subscriptions 2015-2020

The Databook costs 1,250.00 / ‘ 1,490 / US?1,661

For more info go to www.mobilesquared.co.uk/buy-databooks4 or call (44) 118 380 1601

Global A2P messaging forecasts by country, 2015-2020: Mobile operators key to unlocking multi-billion dollar SMS ecosystem, is the second Databook published by mobilesquared, following the release of Global subscriptions & smartphone forecasts by country (2015-18) in April 2016.

About mobilesquaredmobilesquared provides intelligence and insight on the mobile sector. We ve been analysing the mobile space for two decades, so our expertise has been earned, not learned. Our instinctive ability to ask the right questions uncovers invaluable nuggets of insight, which we interpret to help shape truly effective strategy for our clients. Our experience is recognised by our clients5 and by the mobile industry – we sit on judging panels for the prestigious GSMA Awards, EMMA awards, and the MEFFYs.

For more information go to www.mobilesquared.co.uk6

References

  1. ^ http://www.mobilesquared.co.uk/buy-databooks/global-a2p-messaging-forecasts-by-country-2015-2020-mobile-operators-key-to-unlocking-multi-billion-dollar-sms-ecosystem (www.mobilesquared.co.uk)
  2. ^

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