Monetization is the process of converting or establishing something into legal tender (Wikipedia).
A2P Monetization is when you optimise or achieve profit generation from previously unprofitable A2P SMS services.

 

Four facts indicating the great potential of A2P Monetization

  • A2P SMS is a sector not fully monetized yet, which is projected to grow by 36% on an annual basis, according to Portio Research.
  • It provides easier and more efficient control of network traffic, generating increased profits.
  • According to estimates by the Communications Fraud Control Association, mobile operators lost approx. $3.8 billion in 2013 from malicious SMS and unpaid traffic.
  • With traditional revenue streams, such as voice and P2P messaging, in decline, the industry needs new income sources to replace them.

 

The benefits of A2P Monetization

  • You can collect a termination fee for every SMS delivered to your network’s subscribers.
  • You can eliminate “grey routes”.
  • You can increase profits from wholesale opportunities and roaming partners.
  • You can have complete control over your network traffic, which can lead to better business decisions.
  • You can provide a secure environment to your subscribers and a smoother customer experience, promoting increased customer loyalty.

 

3 Key elements of A2P Monetization

  • SMS Firewall

A combination of hardware and software that continuously identifies, filters and blocks unsolicited and unpaid SMS traffic when it attempts to infiltrate your network and affect your subscribers.
Our firewall is unique because it is based on a holistic approach of monetization. It does not just filter A2P International traffic with alphanumeric sender ID (which is a common feature in SMS firewalls), but can also differentiate A2P from P2P traffic and even identify and filter “disguised” A2P messages that pass into your network through domestic P2P channels.

  • Tracking & Reporting

A combination of hardware and software that allows you to fully monitor and administer SMS traffic in your network, and produce all the necessary reports. Real-time monitoring gives you valuable insights about:
o the kind of traffic you receive,
o traffic volumes,
o the originating partner,
o delivery routes,
o applicable fees.
The Administration module allows you to manage and customise the functions of the SMS Firewall.

  • Requirements and necessary steps

For optimal results, you need to consider the following:

Infrastructure
The first thing you need to decide is where to implement the system. You can choose between a fully local implementation or a combination of local and cloud-based solutions.

Legal considerations
You must be familiar with the local regulations on filtering practices. Some national regulators place restrictions even on the location of the implementation and SMS data storage.

Business considerations
You have to write a business plan that projects the revenue you can expect from A2P Business.

Commercial considerations
You will need a new pricing policy to increase profits and market share without destabilising the market. You will have to sign contracts for every corporate message terminated in your network and establish new collaborations.

Technical considerations
You need to decide on the technical aspects of implementation, such as whether it will be local or cloud-based.

Operational considerations
This is the greatest challenge! You have two options: you can either handle all the aforementioned processes in-house, a task that will occupy several employees from different departments; or you can outsource all the aspects of your A2P Business to AMD Telecom, working with us on how to maximise your profits from this revenue stream (SMS).

Technical Details >