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Four Operator Strategies for Increasing Enterprise Messaging Revenue

Operators continue to witness an increase in application-to-person (A2P) messaging. Because of its widespread availability, SMS has become an integral part of many companies omnichannel operations. 

The resulting increase in application-to-person (A2P) messaging presents mobile carriers with untapped opportunities for revenue growth.

Recent market appraisals of leading mobile Instant Messages Operators imply that the value of an individual user increases as the user base grows. While this might be predicated on advertising income alone, it seems to reason that monetizing a more extensive set of services would enhance the value per user dollar spent.

By comparison, WhatsApp, the market leader, was purchased for $19 billion (about €14.7 billion), or $42 (approximately €32.4) per user, while Viber was purchased for $900 million (about €695 million). WeChat’s multi-feature monetization techniques might result in a per-user price that is twice or perhaps three times that of WhatsApp.

Business Messaging’s Meteoric Ascent and Current Supremacy: Now only SMS, but Starting Tomorrow, RCS

Since its introduction in 2012, A2P messaging’s popularity has increased yearly.

OTT messaging platforms are steadily being included in omnichannel company strategy because of their widespread use in peer-to-peer interactions and their advanced multimedia and interactive features. Nevertheless, there are obstacles to implementing them worldwide, such as the necessity for user installation, isolated environments with no interoperability, minimal stability, and privacy. This prevents organizations from \susing them to communicate vital and sensitive messages.

Furthermore, OTT messaging apps are rarely universally beloved despite their widespread use.

The rich communication services (RCS) program of the \sGSMA, and the worldwide standardization initiatives that go with \sit, may offer a solid alternative. RCS messaging is driven by \smobile carriers, which hold the inherent trust and provide much-needed security for commercial operations.

The next generation of communications, RCS, has already been released by several networks, and there are ongoing industry-wide initiatives to enable it. More than 70% of all smartphones on the market now are Android devices, so a substantial, ready-to-go user base exists. RCS will be available natively on all of these devices.

4 Operator Strategies for Increasing Enterprise Messaging Revenue

While several different monetization tactics exist and market fragmentation, there is significant untapped income potential. We analyze available options for monetization strategies.

In addition to the usual concerns, operators now have to consider the emergence of over-the-top (OTT) messaging apps in the corporate business communications sector. Due to its high degree of engagement and other sophisticated capabilities, instant messaging is increasingly included in communications platform-as-a-service (CPaaS) and omnichannel services.

Mobile carriers may now take advantage of opportunities to expand their enterprise messaging services.

This article will show you how to:

  • Use advanced firewall solutions to protect against sophisticated bypass fraud
  • Implement differential pricing policies for A2P SMS termination
  • Adopt RCS to enhance default messaging capability
  • Form profitable alliances with business communications experts.

Firewall Technologies that are Effective in Combating Sophisticated Bypass Scams

Fraudsters have hampered SMS monetization for years by diverting traffic through free or low-cost “grey channels” and other kinds of telecommunications fraud. As a result of operators’ efforts to mitigate the problem and protect SMS earnings, fraudsters and non-compliant SMS aggregators have begun exploring other channels for SMS delivery. The usage of SIM farms and different types of local bypass has consequently expanded. Mobile carriers may manage this using advanced firewall solutions and SIM Box detection methods that integrate machine learning techniques. This will maintain SMS as a reliable conduit for internal business communication.

Secure Next-Generation Communications through Partnerships

Operators must attract and protect business messaging traffic quickly. By partnering with business messaging specialists, companies may acquire traffic from a vast base of enterprises wishing to engage with customers via messaging channels. These collaborations can save operators from conducting worldwide corporate outreach to obtain tiny quantities of traffic.

SMS messaging experts may provide operators access to significant business traffic volumes by utilizing a global footprint and strong contacts with hundreds of transnational corporations. Future collaborations can include rich messaging and RCS.

Reviving the Standard Communications System with RCS

Regarding messaging, operators need to catch up to OTT services that enable more robust, two-way communications with users.

The WhatsApp Business app, available for free on Android, was introduced in 2018. It facilitates communication between clients and local companies. In 2020, WhatsApp reported that it had crossed the two-billion user mark, with users sending over 100 billion messages every day6.

By supporting RCS, operators can access a worldwide offering with the same functionality as over-the-top (OTT) messaging services. Compliance with legal intercept, GDPR, and other rules are only two of the many new and substantial benefits available through RCS. It is built right into most modern smartphones, making it accessible to most of a mobile operator’s user base. If appropriately implemented, RCS has the potential to replace email as the primary method of communication within businesses. By 2023, RCS corporate messaging is expected to contribute less than 10% of carriers’ A2P messaging income.

Pricing Techniques

Operators must take caution while establishing SMS termination rates despite being the industry standard and the only access point for the service. While the rate must be set in a way that maximizes revenue, excessive termination fees can and will cause businesses to limit

Limiting A2P communications to only life-or-death SMS and switching to other marketing and customer service channels. Developing connections between people instead. Because of this, mobile service providers must take this into account when

Costs and price breaks for certain types of traffic and businesses function as a service to others.

Conclusion

The period of P2P SMS as a significant income source has passed, but the past few years have taught us that A2P SMS has experienced enormous growth.

Many mobile network operators have successfully capitalized on this by implementing sound strategies, enabling them to boost the amount of money they make from A2P SMS.

The future of messaging continues to seem promising, and for operators to thrive, they must:

  • Continue to battle against all (new) sorts of SMS bypass fraud
  • Define the correct pricing strategy for A2P SMS termination
  • Embrace RCS as a natural alternative and complement to OTT messaging
Jesica Garcia – a great tech freak and a professional Software Engineer, belongs to a tiny town in the UK, Stamford. It is her own choice to be a content writer. Before starting the online work, she taught computer science in a school. Apart from her Software Engineering career, she has also completed her master’s in Education and Politics. She is very passionate about helping people understand content writing and marketing. She is a keen observer and possesses a very humble personality. Additionally, she is a keynote speaker and a social worker.

Originally posted 2022-08-03 16:52:19. Republished by Blog Post Promoter

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