Major growth is anticipated in the A2P (Application-to-Person) SMS market over the next few years.

To this end, Perry Offer, CEO of Dialogue Group, the global A2P SMS messaging specialist, nodded towards the need to educate operators and assist them in the evaluation of their profit structures/take action for continued profits and growth, during the Wholesale Messaging and SMS World event in London.

Perry Offer

Perry Offer

The keynote discussion panel, which coincided with the 22nd Anniversary of the sending of the first SMS message, focussed on wholesale SMS and messaging technologies, services, markets and legislation.

James Lasbrey, Head of Wholesale Messaging, Telefónica, also joined the panel and confirmed that the industry is highly likely to see a huge surge in A2P SMS traffic volumes and revenues over the next three years, particularly in core markets, including Latin America and Europe.

The panel also discussed the pricing pressure challenge; a result of grey route trafficking, depleting revenues that should be flowing back to operators.

Offer, backed by Lasbrey, urged operators to move away from encouraging SIM farms and tackle disorderly markets and fraudulent activity head on, in a bid to address the issue and eradicate rock bottom pricing.

Offer said: “Now is the time for operators to act,” and “I’d like to invite the CEO’s of the world’s operators to sit down with their CFOs, and a flipchart, to map out the relationships between their differing revenue flows, because in that way they would understand that much of their current ‘success’ is being delivered at a huge price.

“The industry needs to work together as a whole to address fraud by understanding that it’s within our power to do something about it. This said, operators must not kill the goose that laid the golden egg by setting the price too high and decimating the volume.”

He added: “As long as these fraudulent routes are available then there will always be a price point pressure so we need to work together to put the market in order. Operators should work more closely alongside aggregators in order to bring down price points and by moving to 100% on-net delivery the true value of SMS can be reached. The value of the channel is centred on fast and reliable delivery.

“This is particularly true for mission critical, high-value, time sensitive information in an age of increasing concern about security and authentication.”

Related content

Fraud negatively impacts everyone, including residential and commercial customers, with losses increasing the communications carriers’ operating costs, resulting in higher service costs to the end user. Read our two part technical briefing on fraud in the telecommunications industry here.

Read Steffen’s interview regarding monitoring and responding to fraudulent activity out of hours here.

Read more about our fraud management services here and our network surveillance activity here.

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