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Mobile network operators missing A2P SMS opportunity; Decreasing P2P messaging traffic increases pressure to replace missing revenue according to new research from tyntec and mobilesquared(M2 PressWIRE Via Acquire Media NewsEdge) Munich/London/San Francisco - - New global research from analyst house mobilesquared, sponsored by mobile interaction specialist tyntec, highlights that four in five (81 per cent) mobile network operators (MNOs) cite decreasing revenues on traditional telecom offerings such as P2P (Person-to-Person) SMS as their most pressing concern. The survey of more than 50 international MNOs showed that one in three (32 per cent) respondents have seen a reduction in P2P traffic over the last 12 months whilst half (50 per cent) who have seen an increase in Application-to-Person (A2P) messaging. One in three MNOs (32 per cent) reported at least a 6% growth in A2P traffic over the last year while - in contrast - almost one in five MNOs (18 per cent) have seen P2P traffic decline by more than 5%. This clearly indicates growth in the A2P sector but, given the difference in scale between P2P and A2P, greater focus will be needed on driving growth and monetisation if A2P messaging is to fill the revenue gap left by the decline of P2P SMS. A2P SMS revenues estimated to grow to US$60 billion by 2018 A2P SMS is a crucial revenue opportunity for mobile network operators. Worldwide A2P messages are expected to increase to 2.19 trillion by 2018[1] and A2P revenues will grow to US$60 billion by 2018[2]. The decline of P2P SMS is being attributed to the surge in over-the-top (OTT) services like WhatsApp, Skype and Facebook Messenger. The latest research by mobilesquared reveals uptake of these services is rising rapidly, with half of MNOs (50 per cent) expecting at least half (50 per cent) of their customers to be using OTT services in 2015. In relation to previous research by mobilesquared, this compares to one in five MNOs (21 per cent) projecting the same level of usage in 2013 for the year ahead and none projecting a comparative level of usage in 2012 for 2013. Utilising A2P SMS has been a challenge for network operators as the technology has previously been inundated with spam. Recently, it has emerged as an attractive revenue stream following demand for high-quality traffic by enterprises and OTT players. MNOs need to untap the potential of OTT partnerships "OTT players and enterprises are driving the use of A2P SMS by providing more personalized and real-time customer services such as account updates, reminders or SMS-based two-factor authentication", Thorsten Trapp, Co-Founder and CTO at tyntec comments. "Building relationships with these customers can help MNOs to develop forward-looking business strategies and this is where companies like tyntec add value. Our relationships with operators, OTTs and enterprises alike put us in the perfect position to be able to support MNOs with attractive global A2P offers to close coverage gaps and provide competitive pricing. Only by being open to partnerships will MNOs have the best chance of success of leveraging opportunities such as A2P SMS." Nick Lane, chief insight analyst, at mobilesquared, said, "While mobile operators look for an OTT business model, that will help to offset the demise of voice and messaging revenues, growth in A2P SMS has become a viable revenue generating opportunity, providing growth in SMS traffic that has not been seen for a number of years. As an industry we talk of community and engagement, and now businesses and brands are capitalising on the power of messaging to do the same." Notes to editors Research was conducted by mobilesquared during July to September 2014. The mobilesquared global mobile operator database and OTT service providers and vendors were questioned using both an online survey, and a set of face to face interviews and briefings. [1] www.ovum.com/global-sms-revenues-will-decline-after-2016 [2] www.juniperresearch.com/viewpressrelease.php?pr=444 About tyntec tyntec (www.tyntec.com) is a mobile interaction specialist, enabling businesses to integrate mobile telecom services for a wide range of uses - from enterprise mission-critical applications to internet services. The company reduces the complexity involved in accessing the closed and complex telecoms world by providing a high quality, easy-to-integrate and global offering using universal services such as SMS, voice and numbers. Founded in 2002, and with more than 150 staff in six offices around the globe, tyntec works with 500+ businesses including mobile service providers, enterprises and internet companies. About mobilesquared mobilesquared is the best provider of intelligence and insight on the mobile sector. We excel at conducting dynamic research and writing amazing copy. Our core team of journalists-turned-analysts have been covering the mobile space since phones were like bricks, and this experience allows us to analyse and strategise our findings and transform into outstanding reports for clients, whether for internal use (e.g. market positioning) or external (e.g. white papers, quarterly publications), even presentations. And because we're small, we're flexible, completely independent, and very cost-effective. Learn more about how we can help you by paying our site a visit www.mobilesquared.co.uk. Press contact tyntec tyntec Caroline Dreier +49 89 202 451 140 [email protected] Press contact PR agencies MWW (UK) Charlotte Nicholds +44 20 7046 6080 [email protected] Barokas PR (US) Bailey Fox +1 206 264 8220 [email protected] . (c) 2014 M2 COMMUNICATIONS |