At the recent WAS conference, a significant turning point was experienced in the realm of A2P SMS messaging. While concerns over rising prices and AIT had been discussed for some time, the industry continued to thrive. However, the landscape has now shifted dramatically, with international A2P SMS traffic numbers declining at an alarming rate. This decline is beginning to impact revenue figures for service providers and MNOs alike, leaving many industry executives unsure about their next steps.
But what if this is a hidden opportunity to redefine the industry? How can service providers and MNOs harness this moment to catapult themselves into a new era of messaging?
A2P SMS – The Decline and Its Implications
Recent statistics paint a stark picture: international A2P SMS traffic is in retreat. At the heart of the conference, industry leaders voiced their concerns — with revenue streams wavering, the call for a strategic pivot is loud and clear. The industry can no longer afford to ignore the challenges at hand.
One executive responsible for wholesale and firewall monetization expressed their uncertainty, saying, “I have no clue what to put in next year’s budget!” Another executive mentioned that their company can no longer rely on long-term commitments and prepayments due to the high risk and unpredictability associated with A2P SMS messaging. These sentiments highlight the urgent need for action and adaptation within the industry.
Yet, within this apparent chaos lies a seed for growth. This is a narrative repeated throughout the history of technology, it’s been observed that often, a downturn in business becomes a catalyst for creativity and innovation. This challenging phase can inspire us to explore new avenues and develop groundbreaking solutions.
Possible Solutions and Strategies
To navigate this changing landscape, industry experts recommend several strategies to mitigate the impact of declining A2P SMS traffic:
- Focus on Enterprise: Enterprises play a vital role in the A2P messaging ecosystem. They utilize A2P SMS services for various purposes, including customer engagement, notifications, and marketing campaigns. By focusing on enterprises, messaging players can tap into a potentially lucrative market and counterbalance the decline in international traffic.
- Shift Focus to National Traffic:
As international traffic declines, focusing on national traffic becomes crucial for sustainability and revenue generation. By exploring opportunities within local markets, businesses can tap into the potential of A2P messaging on a domestic scale.
- Embrace Alternative Channels:
RCS (Rich Communication Services) and OTT (Over-The-Top) messaging platforms offer alternative channels that can help offset the decline in A2P SMS traffic. These platforms provide richer interactive experiences for users and can potentially open new revenue streams for service providers and MNOs.
- Harness the Potential of Two-Way Communication:
A rising trend in A2P messaging is the adoption of two-way communication, facilitated by chatbots powered by AI. Enabling brands and enterprises to engage in natural and interactive conversations with customers can enhance customer satisfaction and potentially drive better business outcomes.
The Role of GTC
In these challenging times, partnering with a trusted industry expert like GTC can be invaluable. With our extensive experience in the A2P messaging landscape, GTC offers tailored solutions to address the evolving needs of businesses. Our expertise in national traffic monetization, alternative channels, help companies adapt and thrive in this changing A2P messaging environment.
The decline in international A2P SMS traffic has brought about a pressing need for adaptation within the messaging industry. By shifting focus to national traffic, exploring new channels, and embracing two-way communication powered by AI, businesses can navigate the changing landscape and potentially boost revenue. Collaboration with industry leaders like GTC can provide the necessary expertise and solutions to confidently face these challenges.
As the industry continues to evolve, staying informed about emerging trends and remaining agile will be key to staying ahead of the curve. Remember the current decline in A2P SMS traffic is not a signal of defeat, but a call for innovation and adaptability.
Global Telco Consult (GTC) is a trusted independent business messaging consultancy with deep domain knowledge in application-to-person (A2P) services. GTC provides tailor-made messaging strategies to enterprises, messaging service providers, operators and voice carriers. We have expertise in multiple messaging channels such as RCS, Viber, WhatsApp, Telegram and SMS for the wholesale and retail industry.
GTC supports its customers from market strategy through service launch, running the operations and supporting sales and procurement. The company started in 2016 with a mission to guide operators and telcos to embrace new and exciting opportunities and make the most out of business messaging. For more information or industry insights, browse through our blog page or follow us on LinkedIn.