Harnessing the Power of International A2P Out Messaging: A Key Revenue Driver for MNOs and Local Enterprises

5 min read

As digitalisation continues to make the world a smaller place, international Application-to-Person (A2P) out messaging emerges as a promising trend, offering a plethora of benefits for expanding the business of previously local-only enterprises. This communication model enables businesses to connect with their customers globally, opening new revenue streams and fostering brand loyalty by sending reminders, notifications, alerts, promotional messages, one-time passwords (OTPs), and more. Thanks to its ubiquity, A2P SMS is the primary communication channel for reliable delivery of such notifications while simultaneously creating additional revenue opportunities for MNOs that partner with national enterprises.

As projected annual A2P messaging revenues will reach over $51 billion between 2023 and 2025, mobile operators should keep track of A2P Out as a growing revenue stream that requires their attention and active involvement. In this article, we examine the challenges local enterprises face when sending international A2P SMS and how MNO can help mitigate them.

The challenges of delivering A2P SMS traffic worldwide

As modern local enterprises often have an increasingly diverse customer base, some of which are based in international locations, brands employ A2P SMS as a robust communications channel that grants message delivery in even the most remote locations and can be received by the most basic devices.

When a local enterprise wants to communicate with international clients, it needs access to international A2P links, which are the channels through which these messages can be sent. The challenges with limited international A2P links are:

  1. Reachability: Not all countries have robust telecommunications infrastructure. This could make it difficult to reach customers in certain regions, potentially leading to lost business opportunities.
  2. Reliability: Even where infrastructure is adequate, the quality and speed of message delivery can vary significantly, leading to unpredictable communication timescales.
  3. Regulatory hurdles: Every country has its own rules and regulations for telecommunications, including A2P messaging. Complying with these rules can be a complex process, especially for a small business.
  4. Incorrect routing: When a local enterprise sends SMS to international phone numbers, but local operators don’t have international A2P links, such messages might be routed via international P2P links.

How local enterprises are affected

As Alphanumeric Sender IDs are not allowed in P2P links, local enterprises cannot send SMS to international customers using the original sender IDs. This way, businesses cannot personalise the sender ID in accordance with their brand (for example, a bank might have a sender ID of “MyBank”). The inability to use these in P2P (Person-to-Person) messaging can cause the following challenges:

  1. Erosion of brand recognition: Without the ability to use a personalised sender ID, customers may not recognise the sender of a message, reducing the chance that they will open and read it.
  2. Trust issues: Alphanumeric Sender IDs can help instil trust in the recipient because they can see that a message is coming from a recognised entity. Without this, they might be more likely to disregard a message as potential spam or phishing.
  3. Reduced communication efficiency: Using generic numeric sender IDs could lead to confusion and inefficiencies in communication as clients may not readily identify the sender.

What it means for operators

Finally, leveraging P2P channels instead of proper delivery via A2P connections can result in local MNO being charged with the international P2P rate rather than the international A2P rate (and consequently imposing even higher fees on their enterprise clients), usually leading to cost increases and risk of loss of quality:

  1. Cost: Communicating internationally often involves higher costs due to fees imposed by telecommunications providers, currency conversion fees, and the cost of compliance with international regulations.
  2. Non-Delivery: The risk of message non-delivery is higher in international communication due to potential problems with network connectivity, local regulations blocking certain types of messages, or issues with the recipient’s mobile network.
  3. Risk Management: The high costs and potential risks require businesses to invest in risk management measures such as delivery receipt tracking, compliance management systems, and failover routing options, which can further increase the operational cost.

In all these areas, the challenges can be particularly acute for smaller businesses with limited resources or expertise in international communication, as well as their MNO partners. However, there are seasoned messaging providers equipped with designated solutions that can help businesses and operators navigate these challenges and communicate effectively with their international customers.

The Power of International A2P Out SMS by GMS

GMS (Global Message Services) international A2P out SMS holds significant potential for MNOs. It offers a cost-effective, highly reliable, and scalable platform to send messages across different networks worldwide. Here are some key benefits for operators:

  1. Revenue Growth: With international A2P out messaging, MNOs can unlock new revenue sources. They can monetise their network resources by offering A2P SMS services to local enterprises wanting to reach international customers.
  2. Fraud Protection: GMS provides advanced protection against fraud and spam messages. This enhances customer trust in the network and reduces churn, directly impacting the MNOs’ bottom line.
  3. Scalability: GMS A2P solutions can scale as the MNOs and their clients’ needs grow, enabling them to handle large volumes of messages without significant infrastructure investment.
  4. Compliance and Control: GMS ensures compliance with international laws and regulations concerning data privacy and spam, providing MNOs with the control they need over the messages transmitted through their networks.

In turn, local enterprises can harness the power of international A2P out messaging to boost their marketing and communication strategies. By leveraging GMS’ services, they can expand their global reach by tapping into new international markets, improve CX with timely alerts, notifications, and personalised messages, drive engagement and brand loyalty, leading to increased customer lifetime value and boosted ROI.

As we move further into the digital age, international A2P out messaging, facilitated by GMS, represents a lucrative opportunity for MNOs and local enterprises to expand their revenue streams, engage customers, and secure their networks. The growth potential it offers in our increasingly interconnected world is immense and well worth leveraging. If you are looking to pioneer the improved messaging experience and drive the global expansion of your national brands, do not hesitate to contact our experts today!

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