Local mobile network operators (MNOs), aggregators, and regulators continually seek ways to optimise their services in the ever-evolving telecommunications industry. One crucial aspect that is often overlooked in mobile network management is the need to effectively manage domestic traffic flow, particularly regarding application-to-person (A2P) traffic. This is due to the inherent complexity of managing the growth of such traffic, which results in mobile network operators facing various challenges related to traffic categorisation and monitoring.
According to a recent report by Markets and Market, the Global A2P Messaging Market is expected to grow from USD 66.7 billion in 2022 to USD 78.2 billion by 2028. As the industry continues rising, there is an opportunity to monetise A2P messaging services further. To achieve this, MNOs can implement actions such as having proper network protection and gaining visibility into A2P SMS traffic data to accurately monitor and optimise it.
Learn more in this article, where we delve into the significance of having a robust domestic traffic management strategy, focusing on economic benefits, spam control, and the optimisation of A2P traffic. Take a closer look at these challenges and the solutions that can help operators bring their game to the next level.
Suggest reading: Top 4 benefits of optimising and managing domestic A2P SMS traffic
Three challenges faced when managing domestic traffic
Operators often lack the necessary insights into their network data, limiting their ability to understand and respond to industry-specific nuances of the A2P footprint. Moreover, resource constraints can result in a lack of focus on domestic A2P traffic management, particularly given the higher revenue opportunities associated with international A2P traffic.
Lack of traffic insights
In a situation where all A2P messages are considered uniformly, irrespective of the sender and content type, mobile operators’ capacity to optimise and manage network resources is hampered. Without intelligent classification tools, they struggle to discern the diverse nature of A2P SMS traffic, ranging from transactional messages such as OTPs and alerts to non-transactional messages such as promotions. This broad-brush approach prevents them from gaining deeper insights into their network data, leaving them unable to understand the industry-specific nuances of the A2P footprint. Such a limited perspective can hinder targeted service enhancements, pricing strategies, and potential revenue opportunities tailored to the varied A2P content and sender categories.
Lack of focus due to limited resources
Given the diverse challenges operators face, from maintaining infrastructure to launching new services, resources (both financial and human) may be stretched. This can result in a lack of dedicated resources to efficiently manage and optimise A2P traffic, especially in the domestic arena, where the focus might be more on international A2P traffic due to higher revenue opportunities.
Flat traffic rates
As A2P messaging, which includes notifications from banks, OTPs, and marketing messages, grows in volume, flat rates mean that operators are not capitalising on the increased traffic. Instead of earning more from businesses and service providers that send high volumes of a specific category of messages, operators are restricted to a standardised fee, losing the potential opportunity to enhance A2P domestic traffic because of the lack of knowledge and deep understanding of the traffic rates.
Thus, a robust domestic traffic management strategy is vital for mobile operators. It not only enhances operational efficiency and enables tailored service offerings but also improves control over spam and grey traffic identification, ensuring a superior user experience and protecting operator revenues.
Having a domestic A2P traffic management strategy in place
Despite these challenges, operators can successfully navigate the complex landscape of domestic A2P traffic management with the appropriate tools and strategies and unlock its full revenue potential.
A well-orchestrated traffic management strategy offers numerous economic benefits. By gaining a deeper understanding of the diverse nature of A2P SMS traffic, operators can optimise and manage network resources more effectively. This not only helps boost operational efficiency but also opens avenues for targeted service enhancements and pricing strategies. With intelligent classification tools, operators can discern between the types of A2P traffic, ranging from transactional messages such as OTPs and alerts to non-transactional messages such as promotions. This nuanced approach allows them to tailor their services and pricing models according to the specific needs of different A2P content and sender categories, thereby unlocking new revenue opportunities.
On the other hand, improved control over spam and grey traffic identification is another crucial advantage of a robust domestic traffic management strategy. Spam messages can significantly degrade the user experience, leading to customer dissatisfaction and potential churn. Meanwhile, grey routes pose a severe threat to MNO revenues, as they allow the delivery of A2P messages without payment of the appropriate fees. By implementing effective traffic management measures, operators can mitigate these risks, ensure high-quality user experience, and safeguard their revenue streams.
Enhancing quality and performance with domestic A2P traffic management strategies
A robust domestic A2P traffic management strategy is not just beneficial; it is also essential for operators and aggregators. Implementing effective strategies can significantly enhance service quality, improve overall performance, and unlock new revenue opportunities.
Visual: A graph showcasing the 4 strategies to manage A2P domestic traffic
Network Protection: The first line of defence
An optimal A2P traffic management strategy begins with robust network protection. Advanced firewalls equipped with updated and optimised data services form the backbone of this defence mechanism. They serve as gatekeepers, monitor all inbound and outbound traffic, identify potential threats, and maintain network security and integrity.
With these protections in place, MNOs can guard against unauthorised access, prevent message spoofing, and curb the misuse of resources. This helps preserve network capacity and ensure the delivery of high-quality, uninterrupted services to customers.
Gaining visibility into A2P SMS traffic: The key to better insights
Visibility to A2P SMS traffic is another crucial component of an effective traffic-management strategy. By leveraging sophisticated analytics tools, MNOs can gain valuable insights into their network data, allowing them to categorise and manage information more effectively.
This visibility enables MNOs to discern between types of A2P traffic, from transactional messages such as OTPs and alerts to non-transactional messages such as promotions. With this granular view, they can develop targeted service enhancements, devise appropriate pricing models, and capitalise on new revenue opportunities tailored to specific A2P content and sender categories.
Addressing challenges with improved Analytics and Reporting
The strategies outlined above help MNOs tackle some of the most pressing industry challenges. Enhanced analytics and reporting capabilities result in increased profitability by providing a clearer understanding of network usage patterns, thus enabling more accurate forecasting and strategic planning.
Moreover, these strategies offer better customer protection from spam and fraud. By identifying and blocking grey routes and spam messages, MNOs can ensure a better user experience, build customer trust, and safeguard their revenue streams.
Suggest reading: How to approach domestic A2P monetisation?
Benefits of optimised pricing models and efficient operations for MNOs
Operators, aggregators, or regulators can benefit significantly from insights into domestic traffic when developing tiered or dynamic pricing models tailored to different types of messages. For instance, urgent banking alerts can be priced differently than promotional messages, reflecting their value and importance to end users.
Proper monetisation strategies are essential for efficient operations. MNOs can streamline their operations using tools and solutions that offer insight into traffic. For example, by segregating transactional messages from promotional messages, MNOs can better allocate network resources to handle these loads, leading to more efficient operations.
Realising your full network potential
A well-implemented A2P traffic management strategy, characterised by robust network protection and enhanced visibility into SMS traffic, can significantly improve the quality of MNO services and overall performance. As the mobile industry progresses, these more detailed strategies will undoubtedly play a pivotal role in driving MNO’s success.
Therefore, Domestic Traffic Management is a holistic approach that can drive revenue generation, long-term growth, operational efficiency, and customer loyalty among mobile network operators. Consequently, operators must invest in deploying advanced traffic monitoring and management solutions while collaborating with industry experts to keep up with the evolving digital landscape.
If you are ready for the next step in your operator journey, contact our experts today!